External Unfair Compensation, Internal Pay GAP And Excessive In-Service Consumption Of Executives

In real life,the phenomenon of "sky-high salary" has aroused widespread concern in the society.With the continuous improvement of the status of managers in today's society,how to design the compensation system in order to better restrain managers,reduce the agency cost between managers and controllers,so that managers can better contribute to the enterprise,is a hot issue that needs to be paid attention to at this stage.As the principle of social income distribution gradually turns to pay attention to social equity,people begin to pay attention to the fairness and rationality of executive compensation.Excessive in-service consumption is a way adopted by senior managers to grab corporate interests.It is a component of agency cost.The occurrence of excessive in-service consumption also disturbs the market order.Under the background of comprehensive and in-depth market reform,it is of great significance to discuss the influence of executive compensation equity on the excessive on-the-job consumption.On this basis,this paper focuses on the external unfairness and internal pay gap of executive compensation,and explores the influence of external unfairness and internal pay gap on excessive in-service consumption,as well as the common influence of external unfairness and internal pay gap on excessive in-service consumption.The enterprise is an open system,external environmental factors will affect the internal development and progress of the enterprise,the institutional environment as a part of the external environmental factors,will inevitably affect the incentive effect of executive compensation fairness.There are two important aspects in the institutional environment of Chinese enterprises,one is the nature of property rights,the other is the process of marketization.Therefore,this paper further analyzes the impact of the institutional environment on the fairness of executive compensation and excessive in-service consumption.The theoretical model of the relationship between variables is established respectively.On this basis,the relevant data of 2,143 a-share listed companies from 2014 to 2018 were sorted out,and the model was empirically studied with the help of stata14.0 through theoretical analysis,induction and deduction.The empirical results show that :(1)in enterprises with positive extra pay,external inequality is negatively correlated with excess in-service consumption,while in enterprises with negative extra pay,external inequality is positively correlated with excess in-service consumption.(2)there is a negative correlation between the internal pay gap of senior executives and the excessive in-service consumption.(3)in enterprises with positive extra pay,internal pay gap will enhance the negative impact of external unfair pay on excessive on-the-job consumption.In the negative extra compensation enterprises,the internal pay gap will weaken the positive impact of external unfair pay on the excess on-the-job consumption.(4)compared with state-owned enterprises,the greater the degree of external negative inequality of executives in non-state-owned enterprises,the more likely it is to lead to the increase of excessive in-service consumption of executives,while the negative impact of external positive inequality and internal pay gap on excessive in-service consumption is more obvious in state-owned enterprises.(5)the process of marketization plays a significant negative moderating role in the relationship between external fairness of salary and excess in-service consumption,and in the relationship between internal pay gap and excess in-service consumption.This paper not only studies the influence of the internal pay gap and the external unfair pay on the excess on-the-job consumption,but also considers the influence of the two on the excess on-the-job consumption under different property rights and different marketization process.