The impact of credit risk on labor investment efficiency

Labor investment inefficiency has become a primary focus of academic attention and research. However, existing research has given little attention to the causes of labour investment inefficiency, especially the lack of in-depth research on what key factors inhibit the labour investment efficiency of enterprises and what measures can be effectively taken to improve investment efficiency. Based on a responsibility perspective and empirical evidence from listed companies from 2010 to 2022, the paper empirically shows that credit risk significantly reduces firms' labour investment efficiency and social trust can inhibit such negative effects. Our findings present clear policy implication for the regulators and managers.