The Research On The Relationship Of Compensation Gap Of The Senior Executive And Corporate Perfomance In High Technology Companies

After joining the WTO, the high-tech industries in China developed rapidly. The output value has grown from1.04trillion yuan in2000to7.62trillion yuan in2010. High-tech industry output value has reached10.8percent of the gross national product in2010.The capital market in China have made considerable progress since1991. The stock market is increasingly large, especially after the start of small plates and the GEM in recent years. The proportion of high-tech companies in China’s listed companies is getting larger and larger.The high-tech enterprises develop rapidly, followed by increasingly fierce competition in the high-tech enterprise. In the high-tech enterprises, human capital is the primary resource. The talent shortage has already constituted a potential threat to the development of high-tech enterprises. In the securing the best talent and the retaining the elite ranks of the process, the design of staff salaries will play a very important role. The design of pay system scientific or not, is very important for high-tech enterprises to enhance their core competitiveness and comparative advantage.The design of the pay gap between executives within the team, as well as executives and ordinary employees is the main content in the pay system. So, how to design a reasonable internal company pay gap, for making the high-tech enterprises to retain the human capital advantage? This article will investigate the issue in depth.This article has collected the representive high-tech listed company data in A-share market. Through multiple regression analysis, I want to explore the relationship between pay gap and business performance within the high-tech companies, hoping to provide a theoretical reference for the internal governance of China’s high-tech listed company.The article is divided into six chapters. The first chapter is the introduction which introduces the research background, purpose and significance of research, research methods, articles, innovation, and the basic framework. The first section describes the.background of high-tech development and executive pay gap, and the purpose of this study and innovation. Section II describes the sampling methods, empirical methods and the full text of the basic framework.The second chapter is a literature review, which is divided for two parts of the domestic and foreign. On the basis of points the literature review is divided in reviewing of empirical research and theoretical research, which focuses on tournament theory, the management of power theory and behavior theory. Sum up which scholars confirmed the empirical tournament theory, as well as which scholars confirmed the empirical behavior theory.The third chapter is devoted to the theoretical basis for this article. The first section introduces the related theories, including the theory of principal-agent, optimal compensation contract theory and human capital theory. Second section introduces high-tech enterprises, the concept of plate chain of science and technology and concept of compensation gap.The fourth chapter is the research hypothesis and variable definitions. The first section introduces the sample data selection criteria:This article selects data of the JuChao technology concept company in08,09, and10the three years for the original data. Section II of this study firstly proposes the hypothesis, including the relationship between corporate performance and executive pay gap, pay gap between corporate performance and executive staff. Secondly, the explanatory variables and the explained variables on this article are introduced. Select the enterprise performance as the explained variables, and select the total return on assets (ROA) as indicators of corporate performance. Select the pay gap between high-tech company executives, the pay gap between executives and staff as explanatory variables. The relevant factors will be selected as the control variables (firm size, asset-liability ratio, concentration of ownership, the proportion of state-owned shares, and independent director ratio).Chapter five is the empirical analysis section. Section I will classify industrial of samples and descripe statistics, and the results will be an initial understanding of the various sectors of the pay gap. Second section will present correlation analysis of all variables.After obtaining the degree of correlation between each variable and the correlation coefficient; we will judge the relationship between the explained variables and the explanatory variables. The design of a regression model is in Section III. There are a total of10models, including the pay gap between the relational model, relational model of the pay gap between secondary and corporate performance and sensitivity test model of the one-time items and corporate performance. In the section IV the explanatory variables, explain and control variables will be got into the regression model to analyze. Section V the relationship of the executive pay gap and business performance will be got into the sensitivity hypothesis testing.Chapter six comes to the conclusion of this study and the recommendations of relevant policy in the research areas. The first section summarizes the conclusions of the article, including the positive correlation of the pay gap between high-tech company executives and corporate performance, and positive correlation of the pay gap between the performance of enterprises and the pay gap between senior management and staff. Both conclusions follow the tournament theory. Results of other control variables:Firm size has a positive impact on corporate performance. Asset-liability ratio has a reverse impact on corporate performance. Ownership concentration has a positive impact on firm performance. The proportion of state-owned shares, the square of the proportion of state-owned shares, the proportion of independent directors and corporate performance does not exist a significant correlation.