Abstract
Although the compensation gap between executives and employees has received widespread attention, there are still many different opinions on how the internal compensation gap affects the company's value. Based on this background, this paper uses China's Shanghai and Shenzhen A-share listed companies as a research sample to examine the impact of the compensation gap between corporate management and employees on company value. The research in this paper found that on the whole, the research results are in line with the tournament theory, that is, the compensation gap has a positive impact on the company's value. The greater the compensation gap is, the greater the company's value is. Further research through grouping conducted an in-depth analysis of the moderating effects caused by the economic consequences of corporate heterogeneity, such as the number of executives and shareholding concentration. It is found that a large number of executives and more dispersed equity can better promote the compensation gap to affect company value. This paper provides an important perspective for the supervision and corporate sector, and its conclusions have important reference significance for corporate planning and strategic adjustment of the structure.
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