Patient Capital and Corporate Human Capital Upgrading: Evidence from Chinese Listed Firms
DOI:
https://doi.org/10.62051/r9yrtg21Keywords:
Patient Capital; Corporate Human Capital; R&D Expansion; Corporate Monitoring.Abstract
As economies transition from demographic dividends to human capital-driven growth, patient capital—investment allocations focused on long-term value creation—emerges as a critical driver of corporate competitiveness. Using a panel dataset of Chinese A-share listed firms from 2007 to 2023, this paper investigates the impact of patient capital on firm-level human capital and explores its underlying mechanisms. We find a robust positive effect of patient capital on corporate human capital upgrading. Mechanism analyses reveal that this effect operates through three channels: capital deepening, the expansion of research and development (R&D) investments, and strengthened internal and external monitoring. Furthermore, this positive effect is more pronounced among state-owned enterprises (SOEs), firms located in economically developed eastern regions, and those without CEO duality. Our findings provide micro-level evidence that patient capital can facilitate the transition from demographic to human capital-driven growth, informing policies aimed at optimizing long-term investments and talent structures.
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