Executive Poverty Experience and Narrowing of Internal Salary Gap in Enterprises:the Combined Effects of Self-restraint and Empathy
Based on the relevant data of A-share listed companies in Shanghai and Shenzhen from 2011 to 2021,this paper discusses the impact of executive poverty experience on the internal salary gap in enterprises.It is found that such experience can reduce the internal salary gap in enterprises.Mechanism analyses reveal that the general manager's experience of poverty can reduce on-the-job spending and lower management compensation through the"self-restraint effect".The chairman's experience of poverty increases the share of employee pay through the"empathy effect".However,it weakens the incentive effect of the internal salary gap and reduces firms'earnings performance.This makes the chairman's experience of poverty play a limited role in the remuneration of the average employee.By analyzing the heterogeneous characteristics of companies,it is found that executive poverty experience plays a more positive role in narrowing the internal salary gap in enterprises that are non-state-owned,have low bargaining power of employees,and are labor-intensive.
万方数据
维普
