The Relation Between Executive Pay Gap Of Listed Company And Corporate Performance

In the operation process of modern enterprises, enterprises are facing increasingly competition. Nowadays, more and more scholars and enterprise pay attention to how to design a reasonable salary scheme to retain talent which are an important source of corporate competitive advantage and how salary play a role in incentive effects. Currently the incentive effects of the pay gap research has just started in China, we can do many things to improve the theory. High-tech enterprises as special group of enterprises, more intensely demand for high-end talent, so the incentive effects of reasonable compensation scheme will be more obvious. The existing literature mainly focus on pay levels, while the pay structure is particularly is more important.We learn from previous studies and use literature review,theoretical analysis,statistical analysis and empirical research to investigated the relationship between the executive pay gap and corporate performance.During the study, we added technical complexity, ownership concentration and nature of equity as three adjusting variables,and we study the three adjusting variables how to affect the relationship between high-tech enterprises to study their executive pay and corporate performance gap.In this paper,we will study high-tech enterprises and we collected some dates about high-tech enterprises from 2011- 2013, using multiple regression method. First we verify the relationship between pay gap and corporate performance, then we join the technical complexity and ownership concentration as the moderator into the model and study effects of two factors. Finally, the high-tech industries are divided to state-owned holding enterprises and non-state-owned holding enterprises according to the equity nature, research equity properties on the pay gap and enterprise performance.Through empirical research,we draw the following conclusions: nowadays the executive pay gap have positive correlation with corporate performance in the high-tech enterprises.When other variables held constant, the higher the degree of technical complexity, the more obvious of pay gap weaken the incentive effects.At a relatively low concentration of ownership, the effect of executive pay gap’ incentive effect is more significant to the corporate performance. Ownership property also influence the relation,to be specific, non-state controlled enterprises have a stronger impact on the incentive effects of pay gap than state-owned holding enterprises.