The Impact of Corporate Safety Investment on Total Factor Productivity: Evidence from High-Risk Industries in China

Growing safety-related risks and increasing regulatory pressures have highlighted the importance of safety investment for corporate sustainable development. However, little attention has been paid to whether and how corporate safety investment enhances total factor productivity (TFP). Using panel data from Chinese A-share listed enterprises in high-risk industries over the period 2012–2024, this study examines the impact of safety investment on TFP. The results show that safety investment significantly improves TFP of enterprises in high-risk industries. Mechanism analyses indicate that this positive effect operates primarily through strengthening organizational resilience and alleviating financing constraints. Heterogeneity analyses reveal that the enhancing effect of safety investment is more pronounced in enterprises with high levels of safety investment, state-owned enterprises and enterprises with weaker internal controls. Further analysis shows that safety investment improves corporate sustainable development performance and environmental, social, and governance (ESG) performance by enhancing TFP. These findings contribute to the literature on corporate safety management and operational efficiency by demonstrating that safety investment is not merely a tool for mitigating workplace risks but also a strategic resource that strengthens corporate safety governance, improves operational efficiency, and ultimately promotes sustainable corporate development.