The Influence Of The Unfair Degree Of Executive Team Compensation On The Cost Stickiness In Listed Companies

The problem of unfair distribution of salary in the executive team of listed companies has been around for a long time.In response to this problem,our government departments have issued a series of "salary limit orders" since 2002 to address the phenomenon of huge differences in the salary of the executive team,aiming to narrow the executives.Team salary gap to promote social equity.The fairness of the executive team's salary is related to the two major issues of managerial agency and the company's conversion to the optimal capital structure.In addition,the phenomenon of fee stickiness is common among listed companies.Fee stickiness is a consideration for whether a project maintains the original decision when the company's operating performance declines,and it is also a supplement to the rational allocation of company resources.Cost and expense control is an important dimension of corporate governance,and expense stickiness is a major obstacle that restricts a company's financial flexibility.The executive team salary equity will have an important impact on corporate governance,and the unfair salary of the executive team within the industry and the team will lead to management expectations,opportunistic behavior,and adjustment costs.Therefore,based on social comparison theory,championship theory,behavior theory and agency theory,this paper analyzes the impact of industry and team internal executive team salary unfairness on the company's expense stickiness,and puts forward corresponding policy recommendations.This article takes all A-share listed companies from 2008 to 2017 as the research object,and uses the least square method to study the impact of industry and team internal executive team salary unfairness on the company's expense stickiness.The research results show that:(1)Under certain conditions,the degree of unfair compensation within the executive team is positively correlated with the stickiness of expenses,that is,the higher the degree of unfair compensation of the executive team,the stronger the stickiness of corporate expenses;(2)Under other conditions,the degree of unfair compensation between core executives and non-core executives is positively correlated with cost stickiness,indicating that the greater the gap between core executives and non-core executives,the stronger the stickiness of corporate expenses;(3)Compared with the non-core executive team,the positive correlation between the unfair degree of the core executive team of listed companies and the stickiness of the company's expenses is more significant;(4)Under certain conditions,the unfair degree of external salary of theexecutive team is not The company's expense stickiness is positively correlated,that is,the greater the gap between the company's salary and external salary,the stronger the enterprise's expense stickiness.This study explores the impact of unfair salary distribution of listed company executive team on the stickiness of expenses under the environment of unfair salary distribution of the executive team of Chinese listed companies.Research related to stickiness,predicting the future situation to adjust corporate costs to make optimal decisions,and promote the restructuring of the senior management team's salary system in China have important theoretical value and practical significance.