The Empirical Analysis On Relationship Between Financial Outturn And Pay Gap Of Executive-staff

This paper selects data of A-share listed companies in Wholesale&Retailindustry from2005to2010as research samples, empirically analyzes effects of thepay gap between executives and staves on financial outturn. It turned out that pay gapand Asset-Liability Ratio have a negative linear correlation, so are ReceivableTurnover and Earnings Per Share. And the effects of pay gap on the Interest CoverageRatio, Current Asset Turnover and Net Asset Growth Rate are appear positivelyinfluence of inverted U-shape, and it has no causal effect on Return on Equity and NetProfit Growth Rate. So pay gap should not be over widening, enterprises should makeexecutive compensation policy base on their financial situations and thecharacteristics of the industry.