{"title":"Managing man and machine: Automation potential and labor investment efficiency","authors":"Sharif Mazumder , Leonid Pugachev","doi":"10.1016/j.gfj.2025.101085","DOIUrl":null,"url":null,"abstract":"<div><div>We study how a firm's ability to automate affects its labor investment efficiency (LIE). Companies with greater automation potential (AP), measured by share of routine task labor, invest more efficiently. They exhibit both lower propensity to over- and under-invest, as well as lower intensity of over- and under-investment, conditional on its occurrence. Using the catastrophic 2011 Thai flooding as an exogenous shock to AP, we find evidence that the relationship between AP and LIE is likely causal. AP appears to spur (hamper) employment growth in good (bad) economic states. We are the first to show that AP leads firms toward more efficient labor investment.</div></div>","PeriodicalId":46907,"journal":{"name":"Global Finance Journal","volume":"65 ","pages":"Article 101085"},"PeriodicalIF":5.5000,"publicationDate":"2025-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Global Finance Journal","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1044028325000122","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
We study how a firm's ability to automate affects its labor investment efficiency (LIE). Companies with greater automation potential (AP), measured by share of routine task labor, invest more efficiently. They exhibit both lower propensity to over- and under-invest, as well as lower intensity of over- and under-investment, conditional on its occurrence. Using the catastrophic 2011 Thai flooding as an exogenous shock to AP, we find evidence that the relationship between AP and LIE is likely causal. AP appears to spur (hamper) employment growth in good (bad) economic states. We are the first to show that AP leads firms toward more efficient labor investment.
期刊介绍：
Global Finance Journal provides a forum for the exchange of ideas and techniques among academicians and practitioners and, thereby, advances applied research in global financial management. Global Finance Journal publishes original, creative, scholarly research that integrates theory and practice and addresses a readership in both business and academia. Articles reflecting pragmatic research are sought in areas such as financial management, investment, banking and financial services, accounting, and taxation. Global Finance Journal welcomes contributions from scholars in both the business and academic community and encourages collaborative research from this broad base worldwide.
京公网安备 11010802042870号
京ICP备2023020795号-1
分享
求助内容：
应助结果提醒方式：
扫码关注我们
