Abstract: The effect of labor force on corporate financial behavior is attracting more and more attention. Based on Chinese listed companies, this paper analyzes the impact of labor protection on corporate risk-taking by adopting the external events of government minimum wage policy. The study finds that minimum wage is negatively associated with corporate risk-taking. The conclusions remain unchanged after substituting the measurement method of enterprise risk-taking, balancing panel and constructing DID model. Further research shows that the negative effects of minimum wage on corporate risk-taking is pronounced in companies with larger labor constraints, higher labor dependence, losses in the previous year, poor financial situation and insufficient compensation incentives for the management. The research not only enriches relevant research of corporate risk-taking and labor protection policy, but also provides inspiration for increasing corporate risk-taking level and labor policy making.

Key words: labor protection, minimum wage, corporate risk-taking