Research On The Internal Compensation Gap And Corporate Performance Of Listed Companies In China

Compensation structure is one of the factors that cannot be ignored among the many factors that affect corporate performance.The power of senior managers in listed companies actually controls the formulation of reasonable compensation contracts,thus affecting corporate performance to a large extent.Improving corporate performance is the company's goal,which requires the joint efforts of the company's executives and employees.Nowadays,the pay gap between employees and senior executives is expanding,which indicates that there is a certain degree of irrationality in the compensation setting of senior executives and employees.Even the wage restriction in state-owned enterprises has not effectively checked the reality of high executive compensation.In recent years,scholars have paid more and more attention to this phenomenon.However,existing literatures do not agree on the research conclusions on the impact of salary gap on enterprise performance,and the causes for the widening of salary gap are different.Based on the championship theory and behavior theory,this paper finds that the effect of salary gap on enterprise performance is not the single effect of utility described in the two theories,but the result of the interaction between them.In addition,in the analysis of tournament theory and behavior theory,the reasons for the formation of pay gap are often ignored,which may lead to bias in the research results of the relationship between pay gap and enterprise performance.However,the large expansion of the pay gap is largely due to the influence of managers'power.When the management power is taken into account,it can be found that the impact of the pay gap on enterprise performance is more about the effectiveness of behavioral theory.Based on the data of A-share listed companies in Shanghai and Shenzhen from 2008 to 2017,this paper uses multiple regression analysis to study the correlation between executive and employee pay gap and corporate performance,and verifies the positive impact of management rights on the formation of pay gap,and on this basis verifies the impact of management rights on salary.The empirical results show that the relationship between executive pay gap and firm performance is inverted"U" type,and management rights have a positive effect on the pay gap.However,under the influence of managerial rights,the pay gap of senior executives is negatively correlated with corporate performance,and this negative correlation is more significant in non-state-owned enterprises.