Empirical Study on Correlation of Manufacturing Companies’ Compensation Gap with the Performance

Abstract:

This paper studied the relationship between executives' compensation gaps and enterprise’s performances of Textile industry in China. By linear regression and relative analysis, it is found that the correlativity of executives’ compensation gap with performance is weak or none with only effective gap between the president and CFO, the compensation gap of executives in coastland areas is larger than inland areas, a positive correlation existed between ownership concentration and enterprise performance, ownership concentration is negatively correlated to executive compensation gap, and the state-owned stock ratio and asset-liability ratio have negative correlation to enterprise performance.

• Periodical: Advanced Materials Research (Volume 566)
• Pages: 525-529
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.566.525
• Online since: September 2012
• Authors: Lu Zhuang Wang, Hui Yu
• Keywords: Company Performance, Empirical Research, Executives’ Compensation Gap, Influence Factor, Manufacturing Company

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