Research On The Relationship Between Compensation Dispersion, Internal Control Quality And Insider Trading

With the development of financial market globalization,China's securities market is developing rapidly,and its scale is also growing.It has made an ineffective contribution to our economy.However,compared with the mature foreign capital market,China's securities market is still in the emerging market,which is still limited in the development process,such as system,law and so on,can not keep pace with the market development.This makes the long-term hidden problems in the stock market begin to appear.For example,many criminals use illegal means to abuse their power to gain unfair gains.Such behavior is the exploitation of the interests of the public investors,and is not conducive to the orderly development of the capital market,but also undermines the functions that the securities market should have.Therefore,insider trading has begun to enter the field of vision.It has not only become the research focus of academia,but also the public investors pay more attention to the development and solution of this problem for fair returns.Insider trading is that the capital market is not fair,should be given a negative attitude in the moral,the market economy is the stumbling block to development.Based on the above research background,this paper studies the correlation between unfair pay and insider trading,and validates its specific effect on insider trading based on the influencing factors of internal control quality.In theory,we perfected the research on the relationship between salary management and insider trading,and introduced internal control factors,which provided a new analytical height for insider trading research.At the same time,it provides a practical basis for China's listed companies to effectively monitor insider trading behavior,rationally standardize the salary structure and improve the quality of internal control,and help fair trading behavior of Listed Companies in China,and stabilize the orderly development of capital market.Insider trading phenomenon appeared frequently in our country,has brought many negative effects to the market economy in our country,based on this article selected2012-2016 events as the standard,the transfer of control of listed companies as research samples,intends to solve the following two problems: first,there is a pay gap inside the company is verified whether the cause of insider trading is more likely to occur;secondly,from the point of view of the quality of internal control of listed companies will be grouped into good and poor quality of internal control group,empirical analysis,analysis of the relationship of the two,what is the relationship between promoting relationship or suppression of two.To solve the above two problems,in order to make the research resultsmore clearly,the author attempts to control the scale of the company,the performance of independent directors,the scale will have an impact on insider trading,the research found that regardless of the pay gap between the managers or the salary gap between managers and workers with insider trading is change in the same direction,that is,to increase the pay gap,the possibility of the occurrence of insider trading more.The inspection of the quality of internal control and the relationship between the pay gap of insider trading plays a role,with business information,financial restatement information,audit opinion information,compliance information,internal control self-assessment report information,internal control attestation report and attestation opinion information perceivable factors to measure the quality of internal control,respectively.The business objectives,the objectives of financial reporting and compliance objectives to measure the quality of internal control,through the above information to judge the results as an alternative to the variable quality of internal control,regression analysis.Through empirical research,draw the conclusion: the good quality of internal control can make the compensation gap caused by the occurrence of insider trading intensity,restrain,and internal control by the poor quality of the company,found that the internal control quality is relatively good business is more intense weakened the pay gap of insider trading strength.Such research results fully show that the quality of internal control is a factor that affects insider trading,and enterprises should consider it as an influential factor in insider trading.This is because the internal control is an important part of corporate governance,the internal control quality is improved,not only enhance the corporate governance level,reduce the cost of supervision,and the most important is to dramatically reduce the degree of information asymmetry,which helps to reduce agency conflicts.