Abstract
The relationship between the internal compensation gap of executives and firm innovation in Chinese manufacturing listed companies is investigated using a sample of Chinese manufacturing companies listed in Shanghai and Shenzhen A-shares from 2015 to 2020. Robustness tests are conducted using propensity score matching method and replacement variable method, and the differences are further discussed based on the nature of property rights and the degree of industry competition. The results of the study show that there is a significant positive relationship, and this relationship is more significant among non-state manufacturing firms and manufacturing firms with high industry concentration.
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