The Influence of Management Pay Gap on Technological Innovation of Pharmaceutical Manufacturing Enterprises
In order to maintain long-term stability and competitiveness in the market,innovation becomes an essential part of the enterprise.Optimizing the compensation structure of enterprises is conducive to stimulating enterprise vitality and further promoting enterprise technological innovation.The article selects the data of pharmaceutical manufacturing firms listed in A-share companies in China from 2010-2021.It uses multiple regression models to empirically demonstrate the impact of management's internal and external pay gap on firms'technological innovation.The study finds that the internal and external management pay gaps positively affect technological innovation for pharmaceutical manufacturing firms.For the model selection,the article concludes that the right-skewed nature of the internal management pay gap data makes it more appropriate to use the Tobit model for its effect on technological in-novation performance.For the external management pay gap,the combination of the double difference model and the Logit model is more appropriate.The Logit model can analyze it as a whole while the double difference model can incorporate the policy influence into it.The article argues that pharmaceutical manufacturing companies can appropriately increase the salary level of key management,widen the pay gap between internal and external managements,motivate managers to work,and improve the motivation and efficiency of enterprise technological innovation.