Impact On Corporate Performance Gap Between Executive And Worker Pay Endogenous Perspective

In recent years, the "salary" news are another after another. Only31October2012,there are two news related to salaries to attract everyone’s attention: First problem is thesecurity wages rank; Second problem is honored overtime wages. There is a sense ofsecurity about the wage ranking criteria on the network, namely they are9250Yuan inShanghai,8780Yuan in Shenzhen,8850Yuan in Beijing,8020Yuan in Wenzhou,7,880Yuan in Hangzhou,7,750Yuan in Guangzhou,7,320Yuan in Suzhou,6,600Yuan inXiamen,6260Yuan in Qingdao and5980Yuan in Nanjing. List one, many users have amessage that he "drag on" and "insecure." Given that most users are in the "unsafe" in theranks. We will observe a group of anti Sichuan salary data: According to the SichuanBureau of Statistics data show that in2011the majority of senior corporate officers isroughly equivalent10to14times to the average salary of the average pay of ordinaryworkers, middle managers is roughly equivalent4-6times to the average salary of workerson average pay, and greater disparity of income within the listed company employees. Theaverage salary of full-time staff positions in many enterprises is dispatched two times orseveral times to the average pay of temporary workers and other personnel, unequal pay forequal phenomenon is more serious.So, corporate executives and employee benefits exist worlds apart, then what causedthe mismatch gap between executives and employees? What is the impaction on corporateperformance? In recent years, scholars have been working on the pay gap and corporateperformance relationship, but their study was to investigate the effects of a one-wayrelationship between pay gap and corporate performance, and few people to explore theeffects of a two-way relationship. Therefore, the study of the interaction of both of them istheoretical significance and practical significance.This paper selected the entire2008-2012from Shanghai and Shenzhen A-share listedcompanies as sample, and had a correlation test between executives and ordinary workerspay gap and corporate performance, and found that they were non-linear correlation, but apositive U. Next, In this paper, the pay gap between executives and ordinary workers,corporate performance testing done endogenous discovered the existence of bothendogenous. Finally, in the case of the control of the endogenous,a two-stage regression(2SLS) model was estimated and found that the gap of executives and ordinary workers andcorporate performance remains non-linear correlation, but the pay gap would have a larger effection on corporate performance, significantly more obvious. Finally, according to theresearch findings, this paper put forward some policy recommendations.