An Research On The Relationship Between Compensation Gap Of Listed Companies And Company Performance

The gap of listed companies has been the focus of attention of the business community and academia. Senior management as a corporate agent has the right to allocate considerable resources of the entire company, the decision made by the entire company forward direction is dominant, so the role of senior management in the company is in a pivotal position.Meanwhile, the executive staff as implementers of decisions, plays an important role in production activities. Thus between the executive team, the pay gap between executives and employees is set to issue corporate executives and employee motivation have a very big impact, which would affect the company’s efficiency.Papers in Shenzhen main board listed companies as the research object, based on the theoretical analysis of the pay gap and enterprise performance, the paper makes an empirical analysis of the relationship between compensation gap of listed companies and company performance, and gives some advice to improve the system of compensation management.First of all, the paper starts with the background and significance of research, reviewing the foreign and domestic research literature, and defines the relevant concepts,the gap theory basis of the tournament theory and behavior theory,and then carries on the analysis from three aspects, including the status of the current situation of compensation of listed companies in China, listed Companies pay gap and the influence factors of China’s listed companies pay gap; Secondly, Based on the data of ROA and the pay gap and so on from 2010 to 2014 in Shenzhen main board listed companies, the paper makes an empirical analysis of on the relationship between compensation gap of listed companies and company performance, using Spss software to descriptive statistics and correlation analysis, regards enterprise performance as explained variable,executives within the team, relative pay gap between executives and ordinary workers as explained variable regression analysis,the results showed that: the relationship between the pay gap and corporate performance in an inverted "U" shaped relationship,that within a certain range, the compensation gap plays a promoting role of the enterprise performance, but more than this range, behavioral theory will play a leading role,pay gap enlargement reduces enterprise performance; Finally, combining with the development of current situation and the conclusions targeted and gives some advice to improve the system of compensation management, including establishing reasonable salarystructure, standardize compensation disclosure system, widen the channel of the incentives and other measures.