An Empirical Study On The Relationship Between Pay Gap And Corporate Performance From The Perspective Of Enterprise Life Cycle

A scientific and effective incentive mechanism plays an important role to improve the enterprise external competitive strength, is to absorb and retain the power tools of talent,greatly affected the team stability and sustainable development of enterprises. An effective way of compensation gap as compensation incentive has been recognized by the enterprise,the pay gap between executives and excellent executives among employees can be just perfect to inspire the talents, to achieve the optimal allocation of resources compensation,to achieve a win-win business and employee decision. Therefore, it is of great significance to explore the relationship between the pay gap and corporate performance.This paper uses the data of 198 Shanghai and Shenzhen A-share manufacturing enterprises from 2009 to 2015, starting from the tournament theory, using the pay gap of the enterprise performance incentive, explore the salary gap incentive and enterprise performance intrinsic relationship. And further from the perspective of enterprise life cycle,the dynamic analysis in China's manufacturing enterprises, salary gap performance variables, study the change characteristics and the salary gap between traditional and high-tech manufacturing enterprises in China pay gap incentive effect, in-depth analysis of the pay gap of the two types of enterprises incentive differences in growth the results of the stage and mature stage, and the pay gap of two kinds of enterprise incentive with the comparison of the growth period and maturity period.This paper summarizes the relevant research contents and conclusions of domestic and foreign literatures and finds out the breakthrough points and innovations. Through the analysis of principal-agent theory, optimal compensation contract theory, tournament theory and enterprise life-cycle theory, eight hypotheses are made and build the corresponding model. Through the empirical research, it is verified that the current tournament theory is applicable to the incentive gap of manufacturing enterprises in China,whether traditional or high-tech manufacturing enterprises. Tech enterprises in the different life cycle of the enterprise pay different impact on the performance of enterprises in the growth period, technology-driven high-tech manufacturing enterprises in which the industry environment changes rapidly, and labor-intensive Of the traditional manufacturing enterprises in which the industry environment is more stable, technological progress is continuous and slow, therefore, compared to mature enterprises, in the growth stage of the enterprise, pay gap and the positive correlation between corporate performance. There is a negative regulatory role only in the high-tech manufacturing industry. Which provides a good foundation for the study of the salary gap in the future. It also provides a new perspective for the study of the relationship between pay gap and firm performance.