Empirical Studies Of The Pay Gap And Corporate Performance Of China’s Private Listed Companies

For a long time, the company internal compensation has been attracting the attention of theory and practice. Scholars at home and abroad on the relationship between the internal compensation and corporate performance to a large number of theoretical and empirical research, and achieved certain results. But these studies are mostly concentrated in the salary levels, salary incentive effect on corporate performance, and the compensation gap effect on corporate performance research is relatively small. Pay gap is due to consider personal when designing compensation to the company contribution of different sizes. Whether the gap’s influence on corporate the performance, the effective factors of salary incentive are worthy of our exploration project.Since the reform and opening, our country private enterprise’s development made important contributions to the economic development of our country. However, in the rapidly developing at the same time, China’s private economy and private also highlights the problems of listed companies, such as imperfect management model, incentive effect is not obvious and so on, if these problems cannot be solved effectively, will restrict the further development of the private listed companies in our country. Among them, compensation design problems particularly highlights the shortcomings, because quite a number of private listed company’s compensation system design is unreasonable, can’t attracted to high level talented person, resulting in a loss of high level talents, eventually restricts the further development of the enterprise.Therefore, this article respectively to the senior management team in the private listed companies of China, executives and ordinary workers compensation gap compensation gap by regression analysis, in-depth to explore the compensation gap between private listed companies and corporate performance relationship, and consider the rights, CEO of private listed companies, the proportion of independent directors and the company is different in region and corporate performance relationship of compensation gap adjustment, comprehensive system of the salary gap between private listed companies on China’s influence on corporate performance, thus a scientific and reasonable for the design of Chinese private listed companies pay system to make a certain contribution, give full play to the incentive pay system, improve corporate performance.Aim of this study is to discuss the salary gap between private listed companies in China and the relationship between the corporate performance, and the different environmental conditions on the effect of different compensation and corporate performance relationship, finally, some Suggestions are proposed according to the empirical results, for our country private enterprise to establish compensation system, improve the company performance to provide certain Suggestions. According to the research train of thought, this article is divided into five chapters, the first chapter is introduction. The second chapter, the relevant theoretical basis and literature review. The third chapter is the research design. The fourth chapter is the empirical analysis. The fifth chapter is the conclusion and recommendations.To comprehensive research the salary gap between private listed companies and corporate performance in China, the relationship between the private listed companies in our country, this paper respectively from the senior management team within and between executives and ordinary workers pay gap between the Angle of the impact on corporate performance, and the chief executive power, the proportion of independent directors and regional variables from three aspects in different environmental conditions are fully considered in the pay gap about the relationship between corporate performance adjustment. Through statistical analysis software for2009-2011sampling data of Chinese private listed companies from the descriptive analysis, correlation analysis and regression analysis from three aspects of full system analysis compensation gap influence on corporate performance, and thus to design a scientific and reasonable compensation system to make a certain contribution, to further improve corporate performance.Through empirical analysis, this study got conclusion as follows:China’s private listed company executive pay gap or senior management team and ordinary workers pay disparity and corporate performance have positive correlation, the relationship between the pay gap is positive incentive effect to corporate performance. CEO at the same time, companies with large power, will weaken the incentive compensation gap of corporate performance; Independent directors proportion rise would enhance the incentive of compensation gap of corporate performance; When Chinese private listed companies in the eastern region, the incentive of compensation gap of corporate performance was obviously higher than that of private listed company is located in the Midwest, to validate the hypothesis in this paper.Innovation point of this article research is mainly in the following aspects: first, the new research Angle. Second is the research content.