Research On The Influence Of Executive Salary Gap On Corporate Financial Violation

Under the background of economic globalization,enterprises have become the main part of the market.As an executive of scarce resources of enterprises,its salary has received more and more attention from all walks of life in recent years.Some executives have an annual salary of tens of millions,while some executives do not take any penalties.The difference in executive compensation has attracted the attention of the regulatory authorities and has attracted the attention of the academic community.At present,scholars' research on executive pay gap is mainly focused on its impact on corporate value,organizational performance,internal control,etc.The theoretical basis is mainly tournament theory and behavior theory.There are few studies involved in the compensation gap that encourages executives not to harm the interests of companies or shareholders,such as financial irregularities.With the improvement of the capital market,the supervision of the regulatory authorities on corporate violations is gradually increasing.The existing research on violations mostly starts from the theory of fraud triangles,and analyzes the influence of executive background characteristics,internal control of enterprises and external regulatory environment on corporate violations.Moreover,the research of domestic scholars regards corporate violations as a whole,and there are few studies that focus on financial violations alone.Therefore,this paper takes this as the starting point,from the perspective of executive pay gap,and analyzes the relationship between executive pay gap and corporate financial violations.This paper selects the data.of A-share listed companies in 2008-2017 as a sample,and selects the sample of financial violations from the sample of corporate violations.We use the internal compensation gap of executives,the external compensation gap of executives and the executive-employment pay gap to measure the executive compensation gap,measure the financial irregularities of enterprises with financial violations and financial violations,and use Stata to return.The analysis examined the relationship between the executive pay gap and whether the company had financial irregularities and the severity of financial violations.research shows:(1)The greater the internal compensation gap of executives,the less likely the company is to have financial violations,and the weaker the severity of financial violations;(2)The greater the external pay gap of executives,the less likely the company is to have financial irregularities and the weaker the severity of financial violations;(3)State-owned enterprise executives-the greater the gap in employee compensation,the less likely the company is to have financial violations,and the less serious the financial violations;(4)Compared with non-state-owned enterprises,state-owned enterprises'executive compensation gap has a more significant impact on the possibility of financial irregularities;the non-state-owned enterprise executive compensation gap has a more significant impact on the severity of corporate financial violations;(5)Compared with the enterprises with equity incentives,the possibility of executive compensation gaps on the possibility of financial irregularities and the severity of financial violations in enterprises is more significant in the sample of enterprises without equity incentives.