Human Resource Internal Control Deficiencies,Executive Compensation Gap And Enterprise Performance

This paper based on the data of the Shanghai and Shenzhen A-share listed enterprise from 2011 to 2013 discusses the excitation effect of executive pay gap through inspecting the relationship of executive pay gap and enterprise performance. Combining the nature of property right of Chinese enterprises, we study the relationships of the human resources internal control defect for different types of enterprises and the executive pay gap excitation effect.The result shows that the internal control defect of human resource has little correlation with the present and future executive comp-gap excitation effect in state-owned enterprises. But the internal control defect of human resource has negative correlation with the present executive comp-gap excitation effect in non state-owned enterprises. Nevertheless, the publishment of the enterprise internal control defect of human resource can stimulate them to improve their internal control system, which is conductive to enhancing the future executive pay gap’s excitation effect.