The Impact Of Executive And Employee Pay Differential On Corporate Performance

With the rapid development of economy in our country,the content of the enterprise financial report disclosure detail gradually,and the mass media as information communicators of information age,it consists of many details show in front of everyone.With the "sky-high price" compensation executives have been revealed,the community began to pay close attention to the problem whether it is reasonable to a large pay gap between executives and ordinary employees,at the same time,the listed company executives "sky-high price" and its work and efforts,also caused the attention of the circles of theory and practice.They point out that the excessive pay gap between the senior executives of listed companies and ordinary employees is an extremely serious social inequity,and corresponding measures must be taken to provide governance.Since the beginning of 2009 the national six departments jointly issued guidance on state executive pay to 2015 the enterprise salary system reform,head of the central management of the formal implementation,each pay orders caused the domestic for the compensation reform and pay gap is the focus of attention.The psychological status and behavior of employees will be directly affected by the pay gap between senior executives and employees,which will further reflect the performance of enterprises.However,the impact of pay gap on corporate performance will be different due to the different property rights of the company.So there are two purposes to find the relationship between the wage gap and corporate performance,on the one hand,it can improve the compensation designed theory,on the other hand,it is helpful for listed companies to design compensation incentive system consistent with their own.This paper selects the data of the listed companies in Chinese a-share main board from 2012 to 2016 as the research object,the listed companies are divided into state-owned listed companies and private listed companies.In this paper,there are five parts,The research content is systematically elaborated to verify the different property rights in the nature of the enterprise.The pay differential of state-owned enterprises is positively correlated with the enterprise performance in a certain range,which is negatively correlated beyond a certain range,and is an inverted u-shaped relationship.In the range of enterprises that private enterprises can accept,the higher the pay gap,the better the enterprise performance,which is in line with the championship theory.The effect of pay differential on enterprise performance is more significant than that of state-owned enterprises.This paper adopts the latest annual report data on data selection,which makes the data timely,and also increases the practical significance of this research.