Government Audit,State-owned Enterprise Corruption And Pay Gap Research

State-owned enterprises have an important position in China's social and economic development.The preservation and appreciation of state-owned enterprises and their stable and healthy growth have a significant role in realizing the dream of the great rejuvenation of the Chinese nation.In recent years,the corruption of state-owned enterprises,the sky-high salary of state-owned enterprise executives,and the ups and downs of state-owned enterprise compensation performance have occurred from time to time.The problem of excessive pay gap is becoming more and more prominent,this shows that the compensation system of state-owned enterprises in China still has its drawbacks and needs to be improved.Although the implementation of the pay control of state-owned enterprises has achieved certain results,it has also brought about a significant increase in the non-pecuniary compensation of state-owned enterprises.The problem of excessively high salary of executives and the wide pay gap between executives and employees still exists,which delay the strategic goals of state-owned enterprise reform.Entering the new era,the government audit faces new requirements and new tests put forward by the party and the state.President Xi proposed to build an audit supervision system with centralized and unified,authoritative and efficient as well as comprehensive coverage.By combing the relevant literature,we found that there is little empirical research on government audit to curb state-owned enterprise corruption and reduce non-pecuniary consumption.So,can government audit play a significant role in investigating the corruption of state-owned enterprises and narrowing the pay gap and reducing non-pecuniary consumption? Need to answer.This paper takes the principal-agent theory,rent-seeking theory and the national auditing immune system theory as the theoretical basis,taking the 2010-2017 A-share and B-share companies as the total sample,we found that state-owned enterprise corruption will increase the external pay gap of executives and the pay gap between executives and employees,and increase non-pecuniary consumption;Then we use the condition of whether it is corruption and whether it is audited by the Audit Commission.The results indicate that the punishment of the SFC and other law enforcement agencies as well as the media exposure have a more positive impact on the company's internal management,government audit can play a role in suppressing the management power of state-owned enterprise.Finally,we use government audit as a moderator variable to further test whether government audit intervention can curb corporate corruption and narrow the pay gap and reduce non-pecuniary consumption.The empirical results showed that government audit can curb state-owned enterprise corruption and reduce executive external compensation and the gap between executives and employees.Based on the above conclusions,this paper put forwards the following suggestions:(1)Strengthening the responsibility auditing of the state-owned enterprises.(2)Playing a better role of Commission for Discipline Inspection,Supervision Office as well as the CSRC in supervising state-owned enterprises.(3)Playing a better role of the board of directors and the remuneration committee in payment formulation.The innovation of this paper is that we systematically analyze the intrinsic link between government audit and executive corruption and pay gap,this paper is useful to deepen the reform of stateowned enterprises and provide a new evidence for government audit to support the supervision of state-owned enterprises,and provide a new research idea for building a more scientific and rational state-owned enterprise compensation system.