An Empirical Research Of Executive Compensation Gap Influenced Corporate Performance In Private Listed Companies

With the rapid development of the overall economy in our country, listed privateenterprises in China occupies an important position in the whole market economy,butthe time for listed private enterprises in China to start business is shorter,most ofthem gradually developed with the excellent market environment and nationalpolicy after the reform and opening in China.Although listed private companiesdeveloping very rapidly, but in their own system construction and modern enterprisemanagement level lags far behind the western developed countries.Human capital is an important capital of enterprises and plays a backbone role inthe enterprise.Perfect and development of the enterprise salary incentive system isrelated to the interests of every employee, and the enterprise senior management staffis the trend of the development of leading enterprises in now and the future, drives thelifeblood of the enterprise operation.Whether the pay gap of enterprise seniormanagement staff affect enterprise performance? Affect the level of businessperformance? How much does the enterprises should follow the compensation gap topromote the development of enterprise performance and not increase the cost?Theanswers to above questions and discussions become the starting point of research inthis paper, this paper by using the basic principle and method of management,economics and psychology, through the executive pay gap and the basic theory ofenterprise performance, mining financial data which is announced by the listedprivate enterprises, comprehensive analysis of China’s private listed companyexecutive pay gap affect enterprise performance relationship, ultimately to provide areasonable salary incentive system theory and policy Suggestions for the listed privateenterprises.Firstly, this paper combed the domesticand foreign existing executive pay gap andthe research of enterprise performance, defined concepts related to the executives,executive pay gap and corporate performance. Through the summary of the theoreticalbasis and the literature review part, I understand the current research status, whichlaid a theoretical foundation for in-depth discussion of this paper.Secondly, This paper through the selected sample for descriptive statisticsanalysis, and sample descriptive statistical analysis will be divided into two parts:samples of different industries and regions, understanding the gap of private listedcompany executive pay and corporate performance. Thirdly, combined with the listed private companies published financial data andgood theoretical basis, in this article, through the empirical analysis we found thatexecutive pay gap widening is conducive to the growth of enterprise performancefrom the overall listed private enterprises. In order to more in-depth analysis of theinfluence mechanism between them, this paper based on the equity concentrationdegree, enterprise scale, enterprise growth and corporate liabilities in the empiricalanalysis in four aspects, and concludes that under the same level of private listedcompanies by adjusting the above four indicators can reasonable to let companyimplements the relative changes of salary incentive system in different stages, whichpromote the growth of enterprise performance.Finally, this paper puts forward relevant policy suggestions from the enterpriseinternal situation, the country and the market environment, combining with the wayand changes characteristics of the impact between the executive pay gap of listedprivate companies and enterprise performance.