| Generally speaking,the level of the company performance and the volatility of company performance are two important aspects of the value of the company.However,most of the domestic and foreign scholars in the process of studying the value of the company use the company performance as only a standard to measure the value of the company,not conduct in-depth research on the volatility of company performance.In fact,for the enterprises and related investors,the volatility of company performance not only reflects the value of the company and the company's risk level,but also affects the investment income of investors.So it is necessary to research the value of the company from the volatility of company performance.Since the principal-agent theory has been put forward,it has been an important subject of corporate governance.There are incentives and supervisions to solve the principal-agent problems,and a variety of incentives are widely studied by the academic field and the entrepreneur.Nowadays,in order to solve the problem,academia not only study compensation incentives,but also the compensation gap.Most scholars mainly based on tournament theory and behavior theory to study the relationship between pay gap and performance,and they got different results.It is known that the performance is often accompanied by risk.With the widening gap between executive pay,the competition among executives is becoming more intense.In order to win in the competition,executives are likely to take more risk and make higher risk decisions,and this may increase the volatility of company performance.In addition,the widening gap in the executive pay increase executives' sense of injustice and undermine the cooperation,which is likely to damage the value of the company and affect the sustainable development of company.So what is the relationship between executive pay gap and the volatility of company performance in the end?Whether listed companies should also consider risk factors during designing the pay structure?Are there differences between executive pay gap and the volatility of company performance under the different nature of property right?Because the correlation between executive pay gap and the volatility of company performance in the domestic academic research is still in its infancy,the relevant research is less.Based on this,this paper attempts to use the method of combining theory and empirical,from the perspective of different property rights,to study the correlation between executive pay gap and the volatility of company performance.This paper mainly includes six parts.The first part is introduction.The second part is the literature review.The third part is theoretical analysis and hypothesis.Firstly,the part defines executives and pay gap.Secondly,it systematically expounds the principal-agent theory,tournament theory,behavioral theory and risk theory.Finally,it puts forward the assumptions of the impact of executive pay gap on the volatility of company performance and the impact of nature of property right on the correlation between executive pay gap and the volatility of company performance.The fourth part is the research design.This part introduces all the variances and two main models used in the regression.The fifth part is the empirical analysis.This part carries on regression analysis using Stata.13 software.The sixth is divided into research conclusions and policy recommendations.Main conclusions drew from the research are as followed:(1)The correlation between the executive pay gap and the volatility of company performance is positive in our listed company.(2)Under the different nature of property rights,the influence of executive pay gap on the volatility of company performance is different.The influence of executive pay gap on the volatility of the state-owned enterprises is more weaker than that of non-state-owned enterprises.The innovation of this paper is mainly reflected in the following two aspects:on the one hand,the research perspective is unique.On the other hand,this paper studies the impact of nature of property right on the correlation between executive pay gap and the volatility of company performance. |
PDF Full Text Request