← Back to Volume 18

Patient Capital and Corporate Human Capital Upgrading: Evidence from Chinese Listed Firms

Liangyu Sun
pp.215-226 DOI: 10.62051/r9yrtg21 June 22, 2026
Download PDF
Abstract: As economies transition from demographic dividends to human capital-driven growth, patient capital—investment allocations focused on long-term value creation—emerges as a critical driver of corporate competitiveness. Using a panel dataset of Chinese A-share listed firms from 2007 to 2023, this paper investigates the impact of patient capital on firm-level human capital and explores its underlying mechanisms. We find a robust positive effect of patient capital on corporate human capital upgrading. Mechanism analyses reveal that this effect operates through three channels: capital deepening, the expansion of research and development (R&D) investments, and strengthened internal and external monitoring. Furthermore, this positive effect is more pronounced among state-owned enterprises (SOEs), firms located in economically developed eastern regions, and those without CEO duality. Our findings provide micro-level evidence that patient capital can facilitate the transition from demographic to human capital-driven growth, informing policies aimed at optimizing long-term investments and talent structures.
Keywords: Patient Capital; Corporate Human Capital; R&D Expansion; Corporate Monitoring.
APA Citation: Liangyu Sun (2026). Patient Capital and Corporate Human Capital Upgrading: Evidence from Chinese Listed Firms. Transactions on Economics, Business and Management Research, 18(1), 215-226. https://doi.org/10.62051/r9yrtg21

References

  1. S.X. Li, X. Liu, H.L. Sun, Promoting the development of new-quality productive forces through patient capital: Characteristics, current issues, and cultivation pathways, Research on Financial and Economic Issues (2024) 14-28. (in Chinese)
  2. H.F. Hu, Y. Zhang, A.P. Wang, Research progress on the issue of patient capital, Economic Dynamics (2025) 192-208. (in Chinese)
  3. Y.X. Hong, J.C. Jiang, Cultivating and expanding patient capital to drive the development of new-quality productive forces, Economist (2024) 5-14. (in Chinese)
  4. L. Wen, S.F. Li, The impact of patient capital on enterprises’ new-quality productivity, China Circulation Economy 38 (2024) 86-97. (in Chinese)
  5. R. Alvarez, M. Jara, C. Pombo, Do institutional shareholders influence corporate investment? Evidence from emerging markets, Journal of Corporate Finance 53 (2018) 38-64.
  6. O. Galor, O. Ozak, The agricultural origins of time preference, American Economic Review 106 (2016) 3064-3103.
  7. M.J. Wu, P. Zhang, Z.Y. Zhao, The impact of patient capital and innovation investment on firm performance: Evidence from listed companies on the SME board, Scientific Decision-Making (2022) 55-72. (in Chinese)
  8. Z.Y. Jiang, F.X. Wu, Patient capital, the digital economy, and innovation efficiency: Empirical evidence from A-share listed manufacturing companies, Journal of Hohai University (Philosophy and Social Sciences Edition) 26 (2024) 121-133. (in Chinese)
  9. R. Deeg, I. Hardie, S. Maxfield, What is patient capital, and where does it exist?, Socio-Economic Review 14 (2016) 615-625.
  10. S. Kaplan, Banking unconditionally: The political economy of Chinese finance in Latin America, Review of International Political Economy 23 (2016) 643-676.
  11. J.Y. Lin, Y. Wang, The new structural economics: Patient capital as a comparative advantage, Journal of Infrastructure, Policy and Development 1 (2017) 4-23.
  12. M.F. Lu, W.J. Ouyang, Patient capital: Development framework, international experience, and the Chinese path, The Economist (2025) 14-25. (in Chinese)
  13. H. Qi, B.H. Han, Z.J. Li, Theoretical foundations and implementation pathways for strengthening patient capital in the digital economy era, Chinese Economic Issues (2024) 16-28. (in Chinese)
  14. T.W. Schultz, Capital formation through education, Journal of Political Economy 68 (1960) 571-583.
  15. G.S. Becker, Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Columbia University Press, New York, 1964.
  16. Q.R. Liu, C. Zhao, Tax policy incentives and the upgrading of corporate human capital, Economic Research Journal 55 (2020) 70-85. (in Chinese)
  17. Y.F. Li, J. Li, R.R. Xiao, Social insurance contribution collection and management and the upgrading of corporate human capital structure, Economic Research Journal 58 (2023) 158-174. (in Chinese)
  18. Y.W. Ye, X. Li, G.C. Liu, Digital transformation and the upgrading of corporate human capital, Financial Research (2022) 74-92. (in Chinese)
  19. X.X. Ma, T.J. Tang, G.J. Zheng, Mixed-ownership reform of state-owned enterprises and human capital structure adjustment: A perspective based on the allocation of high-level talent, Finance and Trade Economics 41 (2020) 101-116. (in Chinese)
  20. W. Yang, D.M. Kong, Internal wage gaps and human capital restructuring in enterprises, Financial Research (2019) 150-168. (in Chinese)
  21. X.Y. Chen, L.Y. Suo, J. Chen, The employment effects of government-guided funds: A perspective based on financing constraints and internal and external oversight, Modern Financial Research 30 (2025) 39-52. (in Chinese)
  22. Z. Griliches, Capital-skill complementarity, The Review of Economics and Statistics 51 (1969) 465-468.
  23. G.J. Shen, The “capital-skill complementarity” hypothesis: Theory, empirical testing, and applications, Economics (Quarterly) 15 (2016) 1653-1682. (in Chinese)
  24. H.Q. Ma, G.T. Huang, R. Wang, The impact of physical capital accumulation on China’s urban-rural income gap: A capital-skill complementarity perspective, Management World (2017) 32-46. (in Chinese)
  25. T.S. Dai, Q. Zhao, Innovation incentive policies and corporate skill demands: Evidence from the R&D expense super-deduction policy, Fiscal Research (2022) 92-112. (in Chinese)
  26. X.X. Ma, T.J. Tang, C.Y. Zhong, Judicial protection of intellectual property rights and the upgrading of corporate human capital structure: A quasi-natural experiment based on the establishment of intellectual property courts, Journal of Zhongnan University of Economics and Law (2023) 107-122. (in Chinese)
  27. D.L. Shen, X.Y. Jiang, Social trust and the efficiency of corporate labor investment, Financial Research (2022) 152-168. (in Chinese)
  28. S. Liu, X.J. Li, A study on the impact of fiscal pressure on corporate digital transformation, Journal of Management 21 (2024) 1456-1466. (in Chinese)
  29. X.P. Li, H.Y. Zhao, F.T. Jiang, et al., China’s regional talent policies and regional innovation performance: Innovation measurement and empirical testing based on 3,171 policy texts, Economic and Financial Research 50 (2024) 4-18. (in Chinese)
  30. N. Hu, F.J. Xue, H.N. Wang, Does managerial myopia affect corporate long-term investment? — Based on text analysis and machine learning, Management World 37 (2021) 139-156. (in Chinese)