Research On The Overseas Background,Pay Gap And Economic Performance Of Executives

With the continuous development of China's economy,the demand for talents is getting higher and higher.Talents with overseas background often mean that they have received good education,accumulated relatively advanced technical level and management experience,which can encourage executives to have the experience and expertise to make strategic choices in the organization.Therefore,the demand for overseas talents is particularly urgent.China has also formulated a series of policies to encourage more talents with overseas backgrounds to work in China and contribute to the country's economic development.With the continuous inflow of overseas talents and the gradual improvement of information disclosure of listed companies.The problem of sky-high salary comes up,not only the introduction of social vertical attention also caused the attention of the regulatory departments.So it is very meaningful to study the relationship between the overseas background of executives,the pay gap and the economic performance of enterprises.In this paper,firstly,the literature at home and abroad is combed,and the relationship among the overseas background of executives,pay gap and corporate economic performance is studied;secondly,according to human capital theory,high-level echelon theory,principal-agent theory,tournament theory and social comparison theory,this paper explores the relationship between overseas background,pay gap and enterprise economic performance.In this study,the overseas background of senior executives is measured by three variables: whether they have overseas working background,whether they have overseas study background and whether they have both.The salary gap is measured by two indicators: vertical salary gap and horizontal salary gap.The economic performance of enterprises is measured by the rate of return on total assets,the rate of return on net assets and the earnings per share Product and Tobin Q to measure,Using structural equation model to study the relationship between the three,considering the interaction between pay gap and enterprise economic performance,using two structural equation models to verify respectively,and dividing enterprises according to the different characteristics of state-owned and non-state-owned enterprises,respectively analyzing the interaction between the three under the nature of two enterprises.This paper selects the data of Chinese listed companies from 2009 to2018,all of which are from CSMAR database.Through research and verification,the standardized path coefficient of executive overseas background to pay gap issignificantly positive,and executive overseas background has a significant positive role in promoting pay gap;most models show that executive overseas background has no significant role in promoting the economic performance of enterprises;corporate economic performance has a significant positive role in promoting pay gap;research on the nature of enterprises In the study,the overseas background still has a significant positive role in promoting the pay gap,while the overseas background has no significant effect on the economic performance of enterprises.The pay gap and the economic performance of enterprises are mutually promoting.Moreover,in the study of state-owned nature,the promotion degree between the pay gap and the economic performance of enterprises is higher than that of non-state-owned enterprises.