Empirical Study on the Relationship between Executive-employee Pay Gap and Firm Performance: the Moderating Role of Technology Intensity
- DOI
- 10.2991/icemit-15.2015.108How to use a DOI?
- Keywords
- Executive-employee pay gap (EEPG), Firm performance, Technology intensity, Listed manufacturing companies
- Abstract
This paper adopts sub-sample comparison analysis method, chooses 191 technology-intensive firms and 644 labor-intensive firms in manufacturing industry over 2008-2012 as the sample, examines the moderating effect of technology intensity on the relationship between Executive-employee pay gap (EEPG) and firm performance in Chinese manufacturing industry. The multiple linear regression results do confirm that the relationship between the two is sensitive to technology intensity. Results show EEPG does have a positive effect on firm performance for either technology-intensive or labor-intensive enterprises, but for the former the positive relationship is very weak and tends to focus more on organizational justice theory. Relatively, for the latter, the positive correlation is very significant, much stronger, and more in line with tournament theory. Our finding suggests that technology intensity negatively moderates the relationship between EEPG and firm performance, which can reconcile the extant disagreements on performance consequences of EEPG among scholars to a large degree and provide some guidance for firms of different industries in designing rational EEPG practically too.
- Copyright
- © 2015, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Zhuo-qin Gao AU - Chang-Zheng Zhang PY - 2015/10 DA - 2015/10 TI - Empirical Study on the Relationship between Executive-employee Pay Gap and Firm Performance: the Moderating Role of Technology Intensity BT - Proceedings of the International Conference on Education, Management and Information Technology PB - Atlantis Press SP - 511 EP - 516 SN - 2352-5398 UR - https://doi.org/10.2991/icemit-15.2015.108 DO - 10.2991/icemit-15.2015.108 ID - Gao2015/10 ER -