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Title: |
Determinants of the Pay Gap between Executives and Employees——An Empirical Study Based on the State Holding Listed Companies |
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Source: |
International Conference on Engineering and Business Management 2012(Part 5 Innovative Technology)
(pp 3790-3793)
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Author(s): |
Juan Li, Beijing Jiaotong University, Beijing, China, 100044 |
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Abstract: |
This paper collects a total of 2883 data of China’s state holding listed company from year 2006 to year 2009 to research the factors that influenced the gap. We come to following conclusions: size and corporate performance significantly promote the pay gap; the first shareholder’s holding rate has a negative correlation with the pay gap, higher share concentration ratio will contribute to contain the gap; the increasing of asset-liability ratio will expanse the pay gap; enlarging the size of the board will lower executives Compensation, and then narrow pay gap. This paper argues that China's state holding companies has been
basically established performance-related salary system, but still failed to curb the expanding trend of the pay gap between executives and employees, which will increase the gap between the rich and the poor.
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