Research On The Effect Of Pay Dispersion On Enterprise Performance

The compensation contract mechanism is one of the important mechanisms to solve the problem of enterprise agency.It is conducive to ensuring the consistency of the interests of client and agent,reducing agency costs and promoting the improvement of corporate performance.In addition to the generally recognized pay level,the pay dispersion is also a way of important compensation incentives,which has an important impact on the level of corporate performance and indirectly affects social equity issues.With the development of the economic level,the reform of the income distribution system,and the deepening of the marketization process,the pay dispersion between core executives and non-core executives,executives and ordinary employees has gradually expanded.Coupled with the emergence of a series of "high-priced salary" incidents,even in the case of sluggish corporate development and market downturn,executives can still get high-priced compensation.The pay gap problem has triggered widespread social controversy and concern.So,is the pay dispersion a positive or negative impact on enterprise performance? The academic community has conducted research on this.Through the analysis of the existing literature,there are many studies on the direct impact of the pay dispersion on corporate performance,but the conclusion has not been reached.There are three main types: positive effects based on tournament theory,negative effects based on behavioral theory,and inverted U-shaped effects.Whether the direct impact of the pay gap on firm performance is promoting or inhibiting,how the pay gap affects corporate performance.It is important to clarify the specific impact path of the pay gap on enterprise performance.The competition strategy determines the development direction of the enterprise.Corporate executives often choose the appropriate competitive strategy based on the actual form they face.Ordinary employees implement specific business activities under the guidance of specific strategies to ensure the effective implementation of the competitive strategy.Then,will the salary gap,which is an incentive effect for individuals,also affect the performance of the enterprise level by affecting the formulation and effective implementation of the competition strategy? In addition,risk is a situational factor that all enterprises are inevitably and must face.The magnitude of the risk often directly affects the survival of the enterprise.The higher the risk,the more executives and employees need to work harder to help the company weather the storm.In the face of different risk scenarios,will the impact of the pay gap on enterprise performance change?Therefore,this paper is based on the following issues.The impact of the pay dispersion on firm performance is positive or negative.In the relationship between pay gap and firm performance,whether the mediating role of competition strategy is established.In the relationship between the two,whether the moderation of risk is supported.In the risk situation,whether the salary gap can affect the performance of the enterprise by affecting the competition strategy,that is,whether there is a role of mediated moderation.Through the study of mediation effect,moderation effect,and mediated moderation effect,the specific action path of salary dispersion to enterprise performance is clarified.This paper chooses the 2011-2016 A-share manufacturing enterprises in Shanghai and Shenzhen Stock Exchanges as the research sample,using the stata 14.0 software for empirical analysis.The main conclusions of this paper are as follows: First,the pay dispersion has a significant positive impact on corporate performance and supports the tournament theory.Second,the competitive strategy has an mediation role between the pay gap and corporate performance,that is,the pay gap has an impact on enterprise performance through the competitive strategy.Third,risk can positively moderate the relationship between pay dispersion and firm performance.That is,the higher the risk faced by the company,the greater the positive impact of the salary gap on firm performance.Fourth,in the risk situation,the salary gap will affect the performance of the enterprise through the competition strategy,and there is a role of mediated moderation.That is,the moderation effect of risk on the relationship between pay dispersion and firm performance can be mediated by competition strategy.The risk makes the positive impact of the pay dispersion on the competition strategy more significant,and the competition strategy further promotes the improvement of enterprise performance.Due to the large gap in the growth of enterprises in the market,this paper has carried out further research to determine whether the effect of the internal pay dispersion of different growth companies on corporate performance is the same.Specifically,the sample companies are divided into two groups of high-growth enterprises and low-growth enterprises according to the net profit growth rate.Then,an empirical analysis of the effect of the salary gap of these two groups on performance is conducted.The study found that the moderating effect of risk in high-growth enterprises is not supported,and there is no the role of mediated moderation.In low-growth enterprises,the role of mediated moderation is established.That is to say,the moderation effect of risk on the relationship between pay gap and enterprise performance can be mediated by competition strategy.Finally,based on the research conclusions,this paper proposes corresponding inspirations and suggestions for relevant government departments and enterprises,and points out limitations and future research prospects.