Study On The Impact Of Wage Dispersion On The Performance Of China’s Listed Commercial Banks

As China’s market economy system unceasing deepening, the wide dispersion betweenlisted companies’ executives and ordinary employees has enlarged rapidly. Widening pay gapis a means of improving listed companies corporate governance and be widely promoted inbanks around the world. Whether China’s listed commercial banks pay gap affect performanceand the impact is positive or negative.This paper attempts to study the impact of wage dispersion between executives andordinary employees on the performance of China’s listed commercial banks. Meanwhile,introducing the corporate governance structure, and study the experience of corporategovemance’s moderating effect on wage dispersion-firm performance relation for reference.The paper studied corporate govemance’s moderating effect on the relationship between wagedispersion in China’s listed commercial banks and firm performance. The study provides therelevant empirical research basis for internal remuneration gap set and corporate govemance.Theoretical and empirical method are used to analyze wide dispersion in China’s listedcommercial banks affect performance and the corporate govemance’s moderating effect onwage dispersion-firm performance relation.Firstly, the article introduces the research background and significance of the topic,structural arrangements and research methods used, in addition proposed innovation part. Onthe basis of reviewing the relevant literature and theory at home and abroad, then we definedrelevant concepts.The second part is the study design. The data comes from the annual report and theCSMAR database.16listed commercial banks from2008to2012was chosen, then proposedhypothesis and model. Thirdly, describe and correlate analyze the data of listed commercial banks from2008to2012descriptive statistics and correlation analysis, then regress analyze wide dispersion affectperformance and the corporate govemance’s moderating effect on wage dispersion-firmperformance relation.Finally are the research conclusions. The results show that the salary gap betweenChina’s listed commercial banks has a positive impact on performance, but the performance isalso affected by other factors. Capital adequacy ratio and the size of bank assets have apositive influence on the performance while the non-performing loan ratio has a negativeimpact on the performance. The moderating effect are:the size of the board of directors, boardindependence, ownership concentration weakened the correlation between China’s listedcommercial banks’ internal wage dispersion and performance, and the size of the supervisoryboard’s impact was not significant.The factors that affect the performance, that affect the wage dispersion-firm performancerelation are complicated. So the study of this article can’t give a completely thoroughconclusion, and just try to explore the study. Some discussion and some viewpoints may not bevery mature, which needs to improve continually.