Executive-employee Pay Gap and High-quality Development of Enterprises:The Moderating Effect of External Equity
An appropriate salary gap can motivate the internal members of the enterprise,which is an im-portant factor that can provide effective assistance for the high-quality development of the enterprise at the micro level.This paper conducts an empirical study based on the relevant data of listed companies from 2016 to 2021.The regression result shows that there is an inverted U-shaped relationship between execu-tive-employee pay gap and high-quality development of enterprises,with the optimal compensation gap be-ing about 20 times;employees'external equity of compensation has a significant negative moderating effect on the above relationship,that is,the improvement of external equity will weaken the inverted U-shaped relationship.This result indicates that a moderate pay gap will promote the high-quality development of enterprises,while an excessively high pay gap will have the opposite effect,and enterprises can alleviate this negative effect by improving the competitiveness of employees'salaries.Therefore,enterprises need to pay attention to the setting of internal pay gaps and conduct regular salary surveys to ensure the external competitiveness of the compensation.
executive-employee pay gaphigh-quality developmentexternal equity of compensation
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