Study On The Impact Factors Of Salary Gap Between Executives And Employees In Listed Company

With the continuous expanding size of the company, the emergence of professional managers leads to the separation of managerial authority in many companys. In order to enactive the executives activeness, the companies generally take the way of salary incentives, resulting in a constantly expanding trend of the salary gap between executives and employees. How to curb this kind of difference pulls big impetus is a pressing matter now, so it is necessary to clarify the causes for the difference between executives and employees,and what factors will affect it. There are many factors that affect the salary gap between executives and employees, including rational factors,and also including the irrational factors. Therefore, we need to distinguish between rational and irrational factors while doing targeted researchs, the scholars’study on the salary gap between executives and employees are mostly concentrated in the level of rational analysis, and most of the empirical research studys the relationship between its corporate performance, the studies cover a narrow field. Based on the previous research results of domestic scholars, a comprehensive combination of factors that may affect the salary gap between executives and employees will be concluded in this paper,and A-share part of listed companies of2008-2010panel data will be used for the study.Firstly, this paper reviews the relevant studys on the factos that influence the salary gap between executives and employees, and points out the existing problems in the relevant studys.And a description about different points will be submited based on the A-share part of listed companies of2008-2010panel data, an overall description on the compensation gap will be proposed.Secondly, the factors that theoretically affect the salary gap between executives and employees, are discussed from three aspects of the company, the internal and external factors and human capital factors.And the differences between executives and employees in human capital is the root causes of pay gap. Finally, in order to confirm the impact of various factors on the pay gap from an empirical perspective, by using2008-2010panel data of the A-share listed companies investigated the impact of company size, performance and other factors on the salary gap between executives and employees through the establishment of the regression equation.By doing this research I found that earnings per share, the number of employees both positively related to the pay gap but the company’s total assets, the number of supervisors,and the proportion of state-owned shares are negatively correlated with the pay gap.In addition, the rate of return on total assets, the proportion of managerial ownership and company executives and employees are all positively correlated to the pay gap,and the number of executives with negative correlation.But those three variables doesn’t have a significant degree,this may because the relevant data is not accurate enough.The innovation points of this paper are listed as follows:Firstly,the date that used in this paper is latest data for the past three years with a certain degree of representativeness and effectiveness;secondly, a comprehensive combination of factors that may affect the salary gap between executives and employees will be concluded in this paper.