The Impact Of Capital Market Internationalization On Enterprise Salary Gap

Since the reform and opening up,especially after joining the WTO,the process of China’s capital market opening up to the outside world has been accelerating.From the introduction of QFII and RQFII systems to open channels for foreign investors to enter the mainland market,to the opening of the Shanghai Shenzhen Hong Kong Stock Connect policy to connect the mainland market with the Hong Kong market,and finally to the official inclusion of A-shares in the MSCI index in June 2018,the internationalization level of China’s capital market is gradually improving.Under the current economic development situation in China,the internationalization of the capital market not only affects the efficiency of capital factor allocation,but also may have a significant impact on the income distribution pattern of residents in China.The report of the Twentieth National Congress of the Communist Party of China emphasized that "to promote economic and social development,in the final analysis,is to achieve common prosperity for all people".However,while opening up to the outside world has promoted rapid economic development,the problem of income gap among Chinese residents has become increasingly serious.In the process of initial income distribution,enterprises,as important participants,play a key role in narrowing the income gap between residents and achieving common prosperity for all people.Previous studies by scholars on the inclusion of A-shares in the MSCI index have mostly focused on stock market reactions,with relatively few literature on the micro level of enterprises.Therefore,this paper discusses the effect and mechanism of the inclusion of A-share into MSCI index on the pay gap of enterprises,which can provide theoretical support for enterprises to deal with internal income distribution issues in an open market environment,and promote the ultimate realization of common prosperity for all people.It has important practical significance.This paper takes the panel data of A-share listed companies from 2014 to 2021 as the research sample,the target companies included in the MSCI index in 2018 and later as the experimental group,and the other A-share listed companies as the control group.It uses the multi time point double difference model(DID)to explore the impact of A-share inclusion in the MSCI index on the corporate pay gap.The results show that the inclusion of MSCI index significantly increases the internal pay gap of the target companies.In order to exclude the influence of endogeneity,this paper uses propensity score matching method,placebo test,replacement of explained variables and other methods to test the robustness of the main regression results,and the empirical results are still significant.Further analysis found that after being included in the MSCI index,the improvement of internal control quality increased the internal salary gap of the enterprise;The increase in the proportion of highly skilled labor employed has to some extent narrowed the salary gap of enterprises.Finally,the results of heterogeneity analysis indicate that regions with high levels of marketization,including the MSCI index,have a more significant effect on increasing the salary gap among enterprises;The increase in equity concentration ratio and the size of the board of directors and supervisors can have a certain inhibitory effect on this increase.Based on the research findings,this article proposes several suggestions:1.Enterprises should pay attention to the coordinated growth of all employee salaries,improve corporate governance mechanisms,strengthen supervision and constraints on management’s self-interest behavior,and improve the uneven distribution of income within the enterprise.2.The government should handle the relationship between economic efficiency and distribution fairness in the process of opening up to the outside world,reasonably limit high income while ensuring the welfare benefits of ordinary employees,and further improve the relevant system of income redistribution,so that the achievements of economic development can truly benefit all people.