Research On The Influence Of Pay Level And Pay Gap To The Growth Of Listed Companies

There are numbers of factors affecting the growth of SMEs, one of which is human capital, however, the key factor determining human capital is salary. Therefore, Salary design has an important impact on the growth of SMEs. Meanwhile, in recent years, the fairness of salary distribution has been paid attention to by government and the community. The Government has issued a number of documents on salary limit and salary reform, but mainly for large state-owned enterprises, SMEs are rarely mentioned. Based on this, this paper mainly studies the effect of pay level and pay gap on the growth of Listed SMEs in china, seeking the effective Salary design for sustainable growth of Listed SMEs.Based on existing research results, this paper selects panel data consisting of 2718 company samples of SME and GEM board from the year 2012 to 2014 as research samples of Listed SMEs, uses multiple linear regression respectively testing the effect of staff pay level and pay gap between executives and ordinary employees on enterprise growth, introduces pay external equity variable as moderator, constituting interaction term with pay gap to study its effect on enterprise growth, makes comparative analysis of the state-owned sample and non-state sample. Meanwhile, this paper uses fixed effects model and instrumental variable method to solve endogeneity problem of models may exist, thereby obtaining more meaningful results. According to the study, I come to the following conclusion: First, raising pay levels will significantly enhance the enterprise growth level, and this works the same on executive pay and ordinary employees pay, while this works better on non- state owned listed SMEs than state-owned ones. Second, in non-state samples, the increase of absolute pay gap will enhance the enterprise growth level. Finally, pay external equity has the moderating effect, in state-owned samples, the raise of executive pay external equity will significantly decrease the impact of absolute pay gap on enterprise growth. In non-state samples, the raise of ordinary employees pay external equity will significantly decrease the impact of pay gap on enterprise growth, and the raise of executive’s external pay equity will enhanced the impact of relative pay gap on enterprise growth.