Research On The Relationship Between Executive Compensation Gap And Corporate Performance Of Listed Companies On The GEM

In the era of knowledge economy,innovation has become an important force for enterprises to survive and develop and gain competitive advantages.Especially for listed companies on the Growth Enterprise Market,investment in R&D activities allows companies to continuously acquire new knowledge,new technologies,and the irreplaceability of products and services has become their core competitiveness in market competition.As the decision-makers of corporate strategic development,corporate executives’ actions and thinking decisions affect corporate performance and the intensity of R&D activities.However,R&D activities are characterized by long cycles,high risks,and uncertain returns.Executives are more inclined to avoid risky investment decisions for the protection of their own interests,and are more willing to invest funds in projects with short cycles and quick returns.To a certain extent,it ignores innovative and long-term R&D projects.In order to reduce the cost of entrusted agency and enhance the sense of responsibility of corporate executives,companies try to use salary incentives to align the interests of executives and shareholders.Setting different salary gaps for different levels of executives as an important incentive method can make The convergence of the interests of management and shareholders has become the key to improving the corporate governance structure,as well as the key to influencing the investment intensity of corporate R&D activities.Based on the above analysis,this article focuses on the following four issues: First,does the internal executive pay gap as an incentive method have an impact on corporate performance? Second,can the internal salary gap of senior executives on GEM listed companies increase investment in R&D activities? Third,what impact does R&D investment of GEM listed companies have on corporate performance? Fourth,what is the path of the executive’s internal salary gap to corporate performance? Does R&D investment play the role of intermediary variables?This article collates relevant literature at home and abroad,and finds that the current research vacancies of scholars on the pay gap and corporate performance path are insufficient.Based on this,this article uses the balanced panel data of GEM companies from 2013 to 2018 as a research sample,a total of 1842 sample data To study the relationship between executives’ internal salary gap,R&D investment and corporate performance,and introduce anintermediary effect model to consider whether R&D investment becomes an influence path between salary gap and corporate performance,and put forward empirical research hypotheses and build a research model.Taking the main business profit rate as a dependent variable,a measure of corporate performance,the gap between core executives and non-core executives as independent variables,and adding R&D investment intensity as an intermediary variable,preliminary descriptive statistical analysis and correlation of panel data Analysis,and then carry out regression test and intermediary effect test of panel data model around the research hypothesis,and test the robustness of the research hypothesis by replacing the R&D investment variables.The study found:First,the salary gap is conducive to the improvement of corporate performance.The widening of the internal salary gap of executives can encourage executives to reduce short-sighted behavior in order to win the competition and obtain higher salaries.Increased performance.Second,the pay gap is conducive to executives to make decisions to increase investment in corporate R&D.Third,R&D investment is positively improving corporate performance and there is no lag in R&D investment.Fourth,the internal salary gap of executives has an impact on corporate performance through the path of R&D investment.By setting a reasonable salary gap,companies encourage senior executives to rationally allocate resources to corporate R&D investment activities,resulting in the growth of main business profits and the sustainable development of the company.Finally,according to the conclusions of this paper,combined with the problems encountered in obtaining data in this paper,we made feasible policy recommendations for the GEM companies themselves and the government.And to the problems and deficiencies in the research process of this article,put forward research prospects.