The Impact of Executive Compensation Gap on Company Performance and Moderating Effect of Ownership Concentration: Empirical Evidence from China

As a country with huge population base, the human resource management of companies in China, especially the issues related to the distribution of executive compensation gap, have attracted much attention and faced many challenges. Therefore, this study takes China’s listed technology companies as the research samples, uses the empirical data of 847 listed technology companies in the CSMAR database, builds the empirical model and uses Stata software to analyze the data, to find out the impact of executive compensation gap on company performance and the moderating effect of ownership concentration. The results show that the executive compensation gap has a significant positive impact on company performance. Ownership concentration has a partial negative moderating effect on the relationship between executive compensation gap and company performance. Therefore, this study provides new insights into the current research system and helping future researchers to better perceive the topic.