School of Business
Do Industrial Robots Affect Labour Investment Efficiency? Evidence From China
Document Type
Article
Abstract
We examine the impact of industrial robots on the efficiency of firms' labour hiring decisions. Industrial robots, by providing scalability and flexibility in production, may lower labour adjustment costs and allow firms to adjust employment levels more efficiently in response to changing economic conditions. Consistent with this view, our analysis of 1845 Chinese listed firms from 2010 to 2019 shows that firms with greater exposure to industrial robots make more efficient labour investment decisions. This effect is more pronounced for financially constrained, labour-intensive and non-state-owned firms. Further analysis reveals that the improvement in labour hiring efficiency is stronger in firms facing greater production uncertainty and possessing higher labour capabilities. These findings provide valuable insights for policymakers seeking to maximise the benefits of industrial robot adoption. © 2026 Accounting and Finance Association of Australia and New Zealand.
Publication Title
Accounting and Finance
Publication Date
2026
ISSN
0810-5391
DOI
10.1111/acfi.70230
Keywords
industrial robot, labour adjustment cost, labour investment efficiency
Repository Citation
Lu, Yunzhi; Tang, Zhenyang; Xie, Sujuan; and Xu, Yue, "Do Industrial Robots Affect Labour Investment Efficiency? Evidence From China" (2026). School of Business. 246.
https://commons.clarku.edu/faculty_school_of_management/246
