Digital Labor Expansion, Capital Circulation, and Corporate Financialization

Using Chinese A-share listed firms from 2009 to 2024, this study examines the impact of digital labor expansion on corporate financialization and the moderating role of capital circulation. The results show that digital labor expansion significantly increases corporate financialization, while more efficient capital circulation weakens this effect. Further analysis reveals that digital labor expansion influences firms’ capital allocation by reshaping production organization and improving resource utilization. This study highlights the importance of labor structure transformation and capital circulation efficiency in understanding corporate financial behavior in the digital economy.