Research On The Correlation Between Salary GAP And Business Performance Of Listed High-tech Enterprises In China

Since the 1980 s,the issue of executive compensation has been widely concerned by the practice circle and academia.However,since China only required listed companies to disclose the executive compensation in the annual report since 1999,the research on the executive compensation in China started late,and millions of annual executives emerged,making the issue of executive compensation once again become the focus of public attention.High-tech enterprises,as knowledge-intensive and technology-intensive industries,have particularly obvious requirements for human resources.Therefore,the salary incentive for employees of high-tech enterprises becomes more important.The pay gap is an important issue that needs to be determined in the pay incentive.How to establish a reasonable and effective pay incentive system for high-tech enterprises,and whether the pay gap has an impact on corporate performance is the main issue discussed in this paper.This paper first defines the key concepts,defines the scope of high-tech enterprises and senior management team,and measures the pay gap between senior management,the pay gap between senior management and employees,and the business performance of enterprises.Secondly based on the unique economic system environment of listed high-tech enterprises in our country,based on the company's perspective,the special requirements for human resources in the principal-agent theory,the optimal contract rights theory,the tournament theory and management theory,on the basis of high-tech enterprise property heterogeneity and different life cycle is discussed under the executive mechanism of employee compensation gap's influence on the company's business performance.In this paper,the 2013-2017 listed high-tech enterprises in Shanghai and shenzhen were selected as samples to conduct a classified study on the correlation between the salary gap of listed high-tech enterprises in China and their business performance.The possible endogenous problems were tested by empirical analysis.It is found that the correlation between pay gap and corporate performance is low among the executive teams of high-tech enterprises in China.This is determined by the development of high-tech enterprises and the characteristics of senior executives.The pay gap and operating performance between executive and general employees are nonlinear correlations,which are U-shaped.This correlation is obvious in the nature of non-state property rights and mature enterprises.There is no correlation in state-owned enterprises,which is determined by the commonality of property rights and the diversity of objectives.This paper gives full consideration to the possibility that the pay gap and the performance of the business can interact with each other.Through the endogenous analysis,the former value of the pay gap is selected as the tool variable of the current pay gap.The two-stage least squares method(2SLS)was used to estimate the model,and the influence of endogenicity was removed,thus eliminating the bias of the simple least squares method(OLS)on the modelized meter.The study of the correlation between pay gap and corporate performance is closer to the actual situation.The cross-variables such as property rights nature and life cycle of high-tech enterprises are added,and the differences between the pay gap and the related relationship of business performance under different property rights nature and life cycle are investigated.Finally,according to the conclusion of the research,this paper puts forward some suggestions on the reform of the compensation system of high-tech enterprises in China,and explains the defects and deficiencies in the research.