The Relationships Study Between Executive Compensation,Employee Compensation And Corporate Value

Compensation in the enterprise management level as a whole is not high, under the condition of our employees vulnerable to the compensation and the impact of fairness; enterprises urgently need to establish a good system of salary incentive to retain staff biggest contribution to the corporate value. Software industry as the representative of the high talent and high income industry has always been a hub of the knowledge-type employees. In the software industry, the staff is the core competitiveness of an enterprise.Therefore, this article tries to study on the basis of existing research on innovation type: first, focus on average employee compensation and its human capital,and put forward the general knowledge staff is indispensable to improvement of the corporate value, at the same time; the theory of human resource accounting is applied to the enterprise salary management concept. Second, the selection of typical highly educated human capital intensive industry, highlights the value of human capital,make the results more representative.In this paper, based on the background of the age of Internet economy in our country, according to the theory of human capital, human resource accounting theory,principal-agent theory and behavior theory, to build the research model, the independent variables include not only the executive compensation, also includes employee compensation, as well as internal pay gap. Aims to research the software compensation of listed companies associated with the value of the company’s internal mechanism improve the efficiency of the development of human resources; create value for the company to provide certain reference function.Based on the empirical data of listed companies of the software industry, the use of descriptive statistics analysis, correlation analysis, multiple regression analysis,statistical analysis methods and put forward hypothesis test, data analysis, build model assumption, normative research combined with empirical research, test out of the ordinary employees compensation and internal pay gap and the intrinsic relation between the value of the company, the results are as follows:First, the executive pay is rising steadily, the internal pay gap and the change of the average employee salary is inversely, the value of the company and ordinary employee compensation were positively to change.Second, the executive compensation, the average employee compensation,internal pay gap as the independent variable, the introduction of the company scale,capital structure, and so on as control variable, nature of corporate equity, human capital as a moderator variable, build the multiple linear regression models, to explore the salary and compensation gap’s influence on the corporate value.Third, through literature review and theoretical analysis, the study found that average employee compensation is significantly related to the corporate value, the executive compensation has not very significant positive correlation with the corporate value; Employee compensation, and the relationship between the internal pay gap and the value of the company by nature of the company and the different degree of human capital.On the results of the study I have put forward the following Suggestions:establish reasonable fair and effective compensation system, and attaches great importance to the value of human resources; provide incentive plan for executives and average employees, optimize the pattern of income distribution. In short, through further study of average employee compensation and its effect factors such as human capital, is advantageous to the enterprise value growth strategy.