The Study Of Executive Pay Gap Impact On Real Estate Listed Companies’ Performance

With the development of the modern company system, executives are graduallybecome the core competitiveness of listed companies in our country and executivecompensation incentive has already become an important subject in modern corporategovernance. As an important part of executive compensation structure design，theexecutive pay gap is gradually become the focus of global scholars research. However,the existing literature about executive pay gap impact on the company’s performancein our country are most for the whole industry, ignoring the particularity of theindustry and making the specific industry research very little. Therefore, this articleselects the real estate industry, using2006-2012Shanghai and Shenzhen A-sharelisted real estate company’s related data as sample to make empirical research on thereal estate listed company’executive pay gap influence on firm performance. Hopingthat the conclusion is beneficial to the Executive compensation system specificationof our country’real estate listed company and the development of the real estateindustry, making a beneficial supplement to the research field at the same time.This paper mainly uses the combination of normative analysis and empiricalanalysis research methods. On the basis of relevant theories at home and abroad,firstly, this paper describes the current situation of the real estate executive pay gapand the performance of listed companies in detail. Then, this paper makes empiricalresearch about pay gap between executives of the real estate listed company impacton the company’s performance from the angle of the relative wage gap. In order tomake test results more accurate, this paper joins the company size, asset-liabilityratio, diversity index, ownership concentration and corporate growth as controlvariables in the regression model and studies their impact on the company’sperformance respectively,. Finally this paper put forward relevant suggestions to thedesign of the real estate listed company executive pay gap in China.The empirical results show that, the pay gap of real estate executive has a "U"type impact on corporate performance of listed companies. The behavioral theory ismore suitable for our country’s real estate listed companies at present. For the controlvariables,the asset-liability ratio has a significant negative effect on the company’sperformance, the diversity index and the ownership concentration have significantpositive effects on firm performance,the firm size and the firm growth have nosignificant effect on firm performance.