Disruption of corporate financialization and labor cost growth: Evidence from China’s new asset management rules

Authors: Chuyuan Liu et al. Abstract The new asset management rules in China bring financial institutions under a unified regulatory framework, aiming to curb regulatory arbitrage, control systemic risk, and improve financial stability. Exploiting the new-rules-induced exogenous shock that disrupts corporate financialization, this study finds that firms with ex ante higher degrees of financialization respond…

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