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Capital Structure and Labor Investment Efficiency: Based on the Resource-Based Viewpoint
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Abstract
Labor investment efficiency reflects how effectively enterprises manage labor resources, directly influencing production efficiency and profitability. Efficient labor investment avoids waste, ensures optimal resource allocation, and supports social stability by promoting effective employment, especially in the context of an aging labor market. However, enterprises with high debt ratios often face inefficiency due to financing constraints, which hinder effective labor resource investment. The resource-based view theory suggests that alleviating financing constraints and optimizing resource use can improve labor investment efficiency. High resource richness can lead to agency problems, and resource uncertainty further impacts efficiency. Traditional studies focus on agency problems related to financing constraints and information asymmetry. This paper posits that enterprises with high debt ratios often experience inefficiency in labor investment, particularly when resources are abundant and environmental uncertainty rises. Additionally, as population aging progresses, technological advancements will interact with labor investment, with information technology reform helping companies enhance labor investment efficiency, thus better meeting future demands for new quality productivity.
Keywords
Labour investment inefficiency, leverage, agency theory, resource viewpoint
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Cite this article
Chen,R. (2025). Capital Structure and Labor Investment Efficiency: Based on the Resource-Based Viewpoint. Advances in Economics, Management and Political Sciences,168,1-9.
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Volume title: Proceedings of the 4th International Conference on Business and Policy Studies
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