Research On The Impact Of Internal Salary Gap On The Performance Of Listed Companies In China’s Sports Industry

At present,China’s sports industry is facing the dilemma of insufficient number and low quality of talents,and there are even fewer talents who meet the employment standards of Listed Companies in the sports industry.As the key to attracting and retaining talents,the importance of the salary system is self-evident,and the inevitable problem is the salary gap.It is related to the satisfaction and engagement of executives and employees to the company,and indirectly affects corporate performance.Therefore,what is the relationship between the internal salary gap and the performance of Listed Companies in China’s sports industry,and what range the salary gap that can maximize the company’s performance should be controlled? It is very important to clarify the above issues for the development of Listed Companies in China’s sports industry.Based on the tournament theory and behavior theory,this study selects 18 listed companies in the sports industry from 2011 to 2020 to conduct an empirical study on the relationship between the internal salary gap and the performance of Listed Companies in the sports industry,and puts forward optimization paths and suggestions.The results show that:（1）from the perspective of business distribution,China’s sports industry listed companies mainly focus on sports events,sports goods manufacturing and stadium management.From the perspective of business model,China’s sports industry listed companies mainly carry out through enterprise cooperation,capital investment and the establishment of wholly-owned subsidiaries.（2）The performance of Listed Companies in China’s sports industry is generally good,but there is a certain degree of decline in 2016 and 2019.The reason for this phenomenon may be related to the capital winter of the entertainment industry in 2016 and the novel coronavirus pneumonia epidemic in 2019.（3）The internal pay gap has a significant non-linear impact on the performance of Listed Companies in China’s sports industry,showing an inverted "U" shape.The salary gap between senior executives and the salary gap between senior executives and employees should not exceed 3 or 9 times,otherwise senior executives and employees will be affected by the behavior theory from the tournament theory,and the company performance will be affected from positive to negative.The influence of enterprise size,asset liability ratio,the ratio of two in one and independent directors on the performance of Listed Companies in the sports industry is not significant.The ownership concentration and the growth rate of operating income are positively correlated with the performance of listed companies.（4）On the issue of internal pay gap and enterprise performance,one of the mainstream views in the academic circles is that there is a nonlinear relationship between the two.The listed companies in China’s sports industry conform to this characteristic.In addition,in recent years,the average value of the pay gap between senior executives and the pay gap between senior executives and employees of Listed Companies in the sports industry in China is below the medium level of the whole industry.The pay gap that can maximize corporate performance is about the average level of the whole industry.Adjusting the pay gap has become an important issue for listed companies in the sports industry.（5）When the internal salary gap of Listed Companies in China’s sports industry is small,it can be expanded by expanding the size of senior management team,increasing the division of post levels and improving performance salary.When the internal salary gap of Listed Companies in China’s sports industry is large,it can be reduced by dismissing inactive senior managers,adopting a flat bandwidth salary structure,reducing the upper limit and increasing the lower limit.Finally,it puts forward relevant suggestions: adjusting the salary level to local conditions,formulating a variety of salary models,improving the salary committee system,etc.