Empirical Study Of Factors Affecting The Internal Pay Gap Of Listed Companies In China

Pay gap has always been the focus for us. Thanks to the widening gap of executive pay level, the widening gap of pay level of executive and employee, we have always been paying attention to rationality of gap of pay level. The degree of controlling the range of gap of pay level decides the result that the interests of executives and shareholders could reach a balance to decrease agency costs and to encourage supervisors and staff to work hard, all of which needs to study further.Firstly, the dissertation introduced the background of internal pay gap, and summarizes the research achievements about pay gap of domestic and foreign scholars, after which the dissertation frame was put forward. Secondly, current situations of pay gap of the executive and the pay gap of supervisors and employees were studied, including the general, industry, region and ownership. In this way, we confirmed the truth that the pay gap was very universal. The analysis laid the foundation for empirical study. Thirdly, based on the study of executive pay gap, this dissertation adopted listed companies data between 2009 and 2013, we hypothesized about the internal pay gap, built the model, many conclusions were reached by empirical study, including descriptive statistics analysis, correlation analysis, regression analysis, grouping test and so on. The pay gap was positive to the corporate performance significantly, which supported the tournament theory. Ownership concentration was negative to the gap of executive pay and the gap of supervisors and employees pay, being in line with expectations. Equity balance, the proportion of independent directors and supervisory board ratio were differently related to the executive and supervisorsemployees pay gap. The size of company was positive to internal pay gap had been verified. The companies with their own attributions in different areas and own nature behaved differently in the aspect of internal pay gap. State-owned enterprises' remuneration policy, especially the monetary remuneration policy was influenced by government interference. Monetary remuneration regulation would limit widening pay gap between executives and ordinary employees. From characteristics of the executive power, doing two jobs, managerial ownership, age and term of office were positively correlated with internal pay gap. Finally, on the basis of empirical research, some useful practical suggestions were put forward ultimately.