Abstract: High quality workers are an important component of new quality productivity, and the optimization of production relations can stimulate the intrinsic driving force of workers, thereby promoting signifi cant improvement in productivity. For enterprises, employees are valuable labor resources, and their work enthusiasm and creativity will directly aff ect the operational effi ciency of the enterprise. This paper focuses on the distribution of enterprise value creation to employees, using Chinese A-share listed companies from 2007 to 2022 as research samples, and deeply explores the impact of employee labor compensation ratio on investment efficiency from the perspective of distribution structure of value creation. The results indicate that an increase in the proportion of employee labor compensation can signifi cantly reduce ineffi cient investment. Mechanism analysis shows that the impact channels of labor compensation proportion on investment effi ciency mainly include expanding information support, strengthening decision-making judgment, reducing fi nancial constraints, and optimizing internal controls. In addition, the eff ect is more signifi cant in non-state-owned enterprises and enterprises with more intense industry competition. This study deepens the understanding of Marxist labor theory of value based on micro level accounting data, reveals the important signifi cance of optimizing value creation and distribution in improving investment effi ciency, guides policy makers to pay more attention to the reasonable distribution of value creation, accelerates the cultivation of newquality productivity, and injects power into promoting high-quality development.