Study On The Influence Of The Pay Gap In Family Enterprises On The Corporate Growth

Since the Reform and Opening up,the level of residents' income in China has been increasing steadily.But with the development of market economy and economic system reform,under the guidance of the principle " Focus on the efficiency and care about the fairness",the pay gap within the enterprise continues to expand,whether it is between the enterprise internal management or management personnel and the general staff salary gap was gradually widening trend.It is undeniable that the more reasonable internal pay gap in enterprises can effectively encourage enterprise managers and ordinary employees to improve their work enthusiasm,and to stimulate the growth of enterprises.However,many studies have indicated that the high pay gap is likely to cause the negative emotion and the aversion to the low income staff,which is not conducive to the unity and cooperation of the members of the organization,and damage the cohesion of the enterprise.At present,how to promote the reform of the income distribution system,enhance the role of consumer demand in economic growth,reduce the income gap has become the focus of public opinion.Enterprise income distribution reform is the basic work of the whole social distribution system reform,and it is the key and difficult point of the reform of income distribution.Reasonable enterprise internal pay gap is not only related to the business performance and corporate growth,but also related to the fairness and justice in whole society.On the other hand,in the last thirty years,family enterprises in our country has experienced a very rapid development process,the problems in corporate governance and pay management is more prominent because of the particularity of the family business.Therefore,this paper takes the family enterprise as the research object,and systematically examines the internal and external compensation gap in family enterprise on the impact of growth.It is of important practical significance to explore the fairness and rationality about the pay gap and its influence on the growth of enterprises.In this paper,based on the tournament theory?behavior theory and enterprise growth theory,we adopted annual panel data including 352 family enterprises in2011-2015,to examine the family enterprise internal and external compensation gap for the influence of enterprise growth?influence mechanism and the corresponding theoretical analysis by constructing the relevant empirical model(threshold panelmodel).The research shows that:(1)the internal compensation gap of top management team has no significant effects on the growth of the enterprise.The family business is a community of interests,which is formed by the blood relationship and the trust of the clan,the objective function of family members and executives is relatively consistent,compared to the internal management of the competition,unity and trust of family members and executives often appear more important.(2)the pay gap within the family enterprise of influence on enterprise growth mainly reflects in the pay gap between executives and ordinary employees,the salary gap between executives and ordinary employees in family enterprises has significant positive effects on the growth of enterprises increased,but it is not a simple linear relationship,but an inverse U type relationship.That is,there is an obvious interval effect.The result of threshold panel model shows that the relative pay gap between executives and ordinary employees should be maintained between 16.966 and 23.382 times.(3)the external compensation gap between family business executives is very significant to the growth of the enterprise.Its effects are even greater than the gap between management and employees.It shows that family business should not only pay attention to the design of internal salary system,but also the dynamic adjustment of the senior management industry salary level.This paper examines the salary gap between internal and external enterprise influence on enterprise growth and its intrinsic mechanism from the family enterprise perspective.It is a expand and enrich on the existing research,this study provides theoretical support for the design of salary system of family enterprises,it has important academic value.Focusing on some problems existing in family enterprise internal governance and in compensation management,as well as the conclusions of the study,this paper puts forward some policy suggestions on the flow mechanism of internal governance and compensation system of family enterprise design and occupation manager market establishment,which helps to improve the family enterprises governance level and growth capacity,and it provides a certain reference to the management practice of family enterprises.