The Management Right,Compensation Gap And Corporate Performance

In recent years,it has become a hot social concern because of the growing compensation issue,at the same time,it also caused wide attention of academia,the government introduced a series of “salary limit” since 2004,it intents to constraints on executive pay and pay gap,but it effect little to the external control.Income distribution has to considering both fairness and efficiency,it is good to social justice to correctly understand and deal with the relationship between fairness and efficiency,and also to promote the development of the harmonious society.Central enterprises as a means to promote China's economic development transformation and social civilization and progress,also plays an exemplary role in terms of salary distribution.Compensation should have to coordinate with the performance of the enterprise,but due to the effect of agent mechanism,executive holds the part of the power of business,scholars through the study found that executive can influence compensation at a certain extent,and management of the new rise of power theory think that the larger power managers can even customised compensation,which will damage the enterprise reputation and performance,therefore,it has to be very urgent and necessary,control the executive power reasonably,establish scientific compensation system especially executive compensation system.At the same time,due to the increases of management power,the pay gap between executives and employees has been widening,excessive pay gap would have a sense of injustice on employees that would affect work attitude and will has negative impact on corporate performance.For compensation gap research,mainly discussing internal executive pay gap,or which theory conforms to focused on exploring pay gaps and enterprise performance,the relationship between executives and employees pay gap research is less.Under this background,the research has a certaintheoretical and practical significance of state listed companies in the management power in China,wage gap and the relationship between enterprise performance.Based on the analysis of the relevant theory,This paper has study compensation gap of domestic and foreign relevant management power,compensation gap and corporate performance,three hypotheses has been put forward after analyzing the existing achievements and shortcomings of this paper: the pay gap is positively related to corporate performance;Management and executive power is significant positive correlation with internal pay gap and employee compensation gap;Management power weakens the positive correlation between pay gap and enterprise performance.Then gathered a total of 515 panel data from 2011 to 2015 of state listed companies,collection and analysis data by use of EXCEL and STATA statistical software,through the descriptive statistics of data,Pearson correlation analysis and multiple regression analysis to verify the correctness of the hypothesis.The results indicate that internal pay gap between executives and compensation gap between executive and employee of state listed companies are positively correlated with corporate performance,support the tournament theory;The higher management power,the more likely for them to use the executive power to get benefit,to work out greater compensation gap,but the executive pay gap is not significant;Under the influence of management power,larger pay gap is not necessarily make better corporate performance.In this paper,the results of the study provides a certain theoretical and empirical support of pay management system of our country state listed companies,and also has a certain reference on how to promote the fair income distribution of executives,improve enterprise performance of our country state listed company.