Corporate labour practices and fintech development : evidence from China : a thesis presented in partial fulfilment of the requirement for the degree of Doctor of Philosophy in Finance at Massey University, Manawatu campus, New Zealand

Abstract

This thesis studies corporate labour practices and financial technology (Fintech) development in China and contains six chapters. Chapter one introduces my PhD thesis. It discusses the motivation and contribution for each chapter. Chapter two contains a comprehensive literature review, which systematically reviews the current state of knowledge related to the theory, impact and determinants of employee treatment in the firms, based on a review of 150 research papers. We observe a growing trend of firms enhancing employee treatment, suggesting that employee treatment functions as an important mechanism that enhances firm value. Chapter three investigates the impact of employee medical welfare on firm productivity. We find that such welfare significantly enhances firm performance by improving employees’ psychological security, which increases work efficiency. This effect is more pronounced in non-state-owned firms, firms with a higher proportion of low-skilled employees and lower R&D intensity. Additionally, firms offering better medical welfare demonstrate stronger resilience during the COVID-19 pandemic. These results underscore the role of organizational caregiving (Vijayasingham et al., 2018) and stakeholder theory (Titman, 1984) in shaping firm outcomes. Chapter four investigates the relationship between new financial technology, digital finance (DF), and corporate employee treatment. We find that DF enhances employee conditions through corporate digital transformation and increased demand for skilled labour. This effect is stronger in regions with lower marketization and severe pollution, where disadvantaged firms leverage DF to attract talent. Moreover, government support, corporate governance, and financial flexibility amplify DF’s positive impact. DF also contributes to workforce expansion and long-term firm performance, reinforcing its role in shaping corporate labour strategies in line with human capital theory (Sweetland, 1996). Chapter five presents the last essay focusing on how DF affects people’s fertility behaviour. We find that DF negatively influences birth rates by increasing investment opportunities, promoting consumption-driven individualism, and raising women’s economic independence and opportunity cost of fertility. Notably, only DF coverage significantly reduces birth rates, whereas its depth and digitalization have weaker effects. More importantly, government’s support in education, healthcare, and religious policies can mitigate DF’s adverse impact on fertility. Chapter six concludes by outlining the main findings, the implications of each essay, the limitations of the thesis, and potential avenues for future research.