Research Landscape of Pay Dispersion and Enterprise Performance in China: A Visualization-Based Analysis

Authors

  • Hongrui Wang

DOI:

https://doi.org/10.54097/qemjv018

Keywords:

pay dispersion, enterprise performance, visual analysis, executive compensation.

Abstract

The pay dispersion is considered to have an important impact on enterprise performance. Scholars have conducted research based on different perspectives such as tournament theory and behavior theory, and have different views on the relationship between the two. Despite the wide range of discussions, researchers have failed to reach a consensus on this phenomenon due to different theoretical perspectives. In order to pay attention to the frontier hot spots and understand the research status of this field in the Chinese context, this study reviews the existing domestic and foreign literature. After the study, CiteSpace was used to visualize 1705 articles from 2014 to 2024 from CNKI to further verify the conclusions of the review. It is found that the current academic attention in this field in China has a downward trend after reaching its peak in 2020, but the new hot spots not only focus on the research in the Chinese context, but also show certain policy orientation. At the same time, the related research has the problem of single measurement dimension of pay dispersion, and the pay dispersion between ordinary employees has not been fully discussed.

Downloads

Download data is not yet available.

References

[1] ZHAO Xin-yu. The Impact of Executive Pay Disparity and Corporate Social Responsibility on Firm Performance [D]. Northeast Electric Power University, 2024.

[2] LAZEAR E P, ROSEN S. Rank-order tournaments as optimum labor contracts [J]. Journal of Political Economy, 1981, 89 (5): 841 - 864.

[3] LIU Zi-jun, LIU Zhi-qiang, LIAO Jian-qiao. Determinants and Effects of Executive Team Pay Dispersion in Listed Companies: An Empirical Study Based on Chinese Context [J]. Management Review, 2011, 23 (9): 119 - 127, 136.

[4] SUN Kai, LIU Xiang, XIE Bo. Top Management Team Characteristics, Pay Gap, and Performance of Entrepreneurial Firms [J]. Science Research Management, 2019, 40 (2): 116 - 125.

[5] GE Wei, XIAO Han. Artificial Intelligence, Household Consumption, and Economic Singularity: A Perspective of Optimized Redistribution Policies [J]. Chinese Journal of Management Science, 2022: 1 - 15.

[6] YANG Jun-qing, WANG Yu-bo. Fairness and Differentiation: Multi-path Exploration of Total Reward Distribution Perception on Performance [J]. On Economic Problems, 2023 (4): 9 - 20.

[7] WU Zhong-min. Three Levels of Social Contradictions in Transitional Societies and Key Influencing Factors [J]. Social Sciences, 2020 (1): 85 - 101.

[8] COWHERD D M, LEVINE D I. Product quality and pay equity between lower-level employees and top management: An investigation of distributive justice theory [J]. Administrative Science Quarterly, 1992: 302 - 320.

[9] ROSEN S. The theory of equalizing differences [J]. Handbook of Labor Economics, 1986, 1: 641-692.

[10] KINI O, WILLIAMS R. Tournament incentives, firm risk, and corporate policies [J]. Journal of Financial Economics, 2012, 103 (2): 350 - 376.

[11] MUELLER H M, OUIMET P, SIMINTZI E. Within-firm pay inequality [J]. The Review of Financial Studies, 2017, 30 (10): 3605 - 3635.

[12] ROUEN E. Rethinking measurement of pay disparity and its relation to firm performance [J]. The Accounting Review, 2020, 95 (1): 343 - 378.

[13] SENGUPTA S, YOON Y. Moderating effect of pay dispersion on the relationship between employee share ownership and labor productivity [J]. Human Resource Management, 2018, 57 (5): 1083 - 1096.

[14] WANG Yi-xian. Research on the Relationship between Managerial Power and Enterprise Technological Innovation: An Analysis Based on the Mediating Effect of Pay Gap [J]. Modern Business, 2017 (4): 122 - 124.

[15] WU Qiang. Pay Dispersion, Firm Performance, and Promotion Mechanisms: Re-examination of Executive Pay Tournaments [J]. World Economic Papers, 2011 (5): 94 - 105.

[16] SHENG Ming-quan, GUO Qian-mei, ZHANG Chun-qiang. Impact of Intra-TMT Pay Dispersion on Firm Competitiveness: An Empirical Study from Tournament Perspective [J]. Journal of Yunnan University of Finance and Economics, 2017, 33 (5): 150 - 160.

[17] DING D Z, AKHTAR S, GLORIA L G. Effects of inter–and intra-hierarchy wage dispersions on firm performance in Chinese enterprises [M]//’Making Sense’ of Human Resource Management in China. Routledge, 2013: 202 - 213.

[18] STOUFFER S A, SUCHMAN E A, DEVINNEY L C, et al. The American Soldier: Adjustment during Army Life (Studies in Social Psychology in World War Ⅱ), Vol. 1 [J]. 1949.

[19] FESTINGER L. A theory of social comparison processes [J]. Human Relations, 1954, 7 (2): 117 - 140.

[20] WANG T, ZHAO B, THORNHILL S. Pay dispersion and organizational innovation: The mediation effects of employee participation and voluntary turnover [J]. Human Relations, 2015, 68 (7): 1155 - 1181.

[21] XU Nan, TIAN Han-yi, LIU Hao. Internal Governance of Entrepreneurial Teams: Collaboration Needs, Pay Dispersion, and Team Stability [J]. Management World, 2021, 37 (4): 216 - 230.

[22] ZHANG Zheng-tang. Collaboration Needs of Top Management Teams, Pay Dispersion, and Firm Performance: A Tournament Theory Perspective [J]. Nankai Business Review, 2007 (2): 4 - 11.

[23] PAN Y, PIKULINA E S, SIEGEL S, et al. Do equity markets care about income inequality? Evidence from pay ratio disclosure[J]. The Journal of Finance, 2022, 77 (2): 1371 - 1411.

[24] AMORE M D, FAILLA V. Pay dispersion and executive behaviour: evidence from innovation [J]. British Journal of Management, 2020, 31 (3): 487 - 504.

[25] FULMER I S, LI J. Compensation, benefits, and total rewards: A bird’s-eye (re)view [J]. Annual Review of Organizational Psychology and Organizational Behavior, 2022, 9: 147 - 169.

[26] GRABNER I, MARTIN M A. The effect of horizontal pay dispersion on the effectiveness of performance-based incentives [J]. Accounting, Organizations and Society, 2021, 88: 101174.

[27] KONG Dong-min, XU Ming-li, KONG Gao-wen. Intra-firm Pay Dispersion and Innovation [J]. Economic Research Journal, 2017, 52 (10): 144 - 157.

[28] CARPENTER M A, SANDERS W G. Top management team compensation: The missing link between CEO pays and firm performance? [J]. Strategic Management Journal, 2002, 23 (4): 367 - 375.

[29] ZHANG Zheng-tang. An Empirical Study on the Impact of Intra-firm Pay Dispersion on Future Organizational Performance [J]. Accounting Research, 2008 (9): 81 - 87.

[30] WANG Jian-jun, LIU Hong-xia. Empirical Study on the Impact of Intra-TMT Pay Dispersion on Investment Efficiency: Evidence from A-share State-owned Listed Companies [J]. Journal of Beijing Technology and Business University (Social Sciences), 2015, 30 (3): 67 - 74.

[31] LAMBERT R A, LARCKER D F, WEIGELT K. The structure of organizational incentives [J]. Administrative Science Quarterly, 1993: 438 - 461.

[32] LU Rui. Managerial Power, Pay Dispersion, and Performance [J]. South China Economy, 2007 (7): 60 - 70.

[33] LYU Wei, ZHANG Shu-kai. Impact of Executive Pay Dispersion on R&D Intensity: A Tournament Theory Perspective [J]. Soft Science, 2015, 29 (1): 1 - 5, 10.

[34] SIEGEL P, HAMBRICK D. Business strategy and the social psychology of top management teams [J]. Advances in Strategic Management, 1996, 13: 91 - 119.

[35] SIEGEL P A, HAMBRICK D C. Pay disparities within top management groups: Evidence of harmful effects on performance of high-technology firms [J]. Organization Science, 2005, 16 (3): 259 - 274.

[36] LI Shao-long, LONG Li-rong, HE Wei. Research on the Relationship between Executive Team Pay Dispersion and Firm Performance: Cross-level Moderating Role of Industry Characteristics[J]. Nankai Business Review, 2012, 15 (4): 55 - 65.

[37] XU Lin, LIU Chun-lin, YANG Xin-yue. Impact of Top Management Team Pay Dispersion on Firm Performance: Moderating Effect of Environmental Uncertainty [J]. Economic Management Journal, 2015, 37 (4): 61 - 70.

[38] SHI Yong-shuan, YANG Hong-fen. Empirical Study on the Impact of Intra- and Inter-TMT Pay Dispersion on Future Firm Performance [J]. Economic Survey, 2013 (1): 104 - 108.

[39] GAO Liang-mou, LU Jian-ci. Asymmetric Incentive Effects of Intra-firm Pay Dispersion: Threshold Panel Model Based on Manufacturing Enterprise Data [J]. China Industrial Economics, 2015 (8): 114 - 129.

[40] LI Jun-hong, WANG Hong-ping, YANG Xiao-guang. Moderation in All Things: Intra-firm Pay Dispersion and Firm Performance [J]. Journal of Systems Science and Mathematical Sciences, 2024: 1 - 36.

[41] LI Han, WU Yu, QIU Wei-song, et al. Impact of COVID-19 on Chinese SMEs: An Interim Report [J]. Bulletin of National Natural Science Foundation of China, 2020, 34 (6): 747 - 759.

[42] ROSEN S. Prizes and incentives in elimination tournaments [J]. Journal of Labor Economics, 1985.

[43] WINTER C. Women Workers in South Africa: Participation, Pay and Prejudice in the Formal Labor Market [J]. World Development, 1999.

[44] HIBBS JR D A, LOCKING H. Wage dispersion and productive efficiency: Evidence for Sweden [J]. Journal of Labor Economics, 2000, 18 (4): 755 - 782.

[45] LALLEMAND T, PLASMAN R, RYCX F. Intra‐firm wage dispersion and firm performance: Evidence from linked employer‐employee data [J]. Kyklos, 2004, 57 (4): 533 - 558.

[46] KATO T, LONG C. Tournaments and managerial incentives in China’s listed firms: New evidence [J]. China Economic Review, 2011, 22 (1): 1 - 10.

[47] LIU Chun, SUN Liang. Executive Pay Dispersion and Firm Performance: Evidence from State-owned Listed Companies [J]. Nankai Business Review, 2010, 13 (2): 30 - 39, 51.

[48] LI Wen-jing, HU Yu-ming. Whom Do Pay Gaps in SOEs Incentivize? [J]. Economic Research Journal, 2012, 47 (12): 125 - 136.

[49] SUN Jun-cheng, YE Chen-gang, TANG Jian. Executive-Employee Pay Gap, Managerial Power, and Firm Performance [J]. Communication of Finance and Accounting, 2019 (12): 10 - 13.

[50] BLOOM M. The performance effects of pay dispersion on individuals and organizations [J]. Academy of Management Journal, 1999, 42 (1): 25 - 40.

[51] WU Zhong-xin, WU Cheng. Measurement Improvement of Pay Dispersion and Its Impact on Firm Performance [J]. Finance and Accounting Monthly, 2016 (18): 3 - 8.

[52] QIAO Yan-ning. Executive Pay Dispersion and Firm Performance: Facilitation or Inhibition? [J]. Communication of Finance and Accounting, 2018 (20): 47 - 50.

[53] WEN Tong, ZENG Yun-xi, CHEN Song. Efficiency and Fairness: Executive-Employee Pay Gap and Labor Productivity in Tourism Enterprises [J]. Tourism Tribune, 2020, 35 (10): 70 - 82.

[54] LI Jun-hong, WANG Hong-ping, YANG Xiao-guang. Moderation in All Things: Intra-firm Pay Dispersion and Firm Performance [J]. Journal of Systems Science and Mathematical Sciences, 2024: 1 - 36.

[55] REN Li-na. Impact of Vertical Pay Gap between Executives and Employees on Firm Performance [J]. Chinese and Foreign Entrepreneurs, 2015 (16): 73 - 74.

[56] BAO Ya-jie. Life Cycle, Pay Gap Incentives, and Firm Performance: Empirical Evidence from Chinese Manufacturing Listed Companies [J]. Commercial Accounting, 2018 (20): 23 - 28.

[57] ZHANG Li-ping, YANG Xing-quan. Managerial Power, External Pay Dispersion, and Firm Performance [J]. Finance & Economics, 2013 (4): 66 - 75.

[58] COLES J L, LI Z, WANG A Y. Industry tournament incentive [J]. The Review of Financial Studies, 2018, 31 (4): 1418 - 1459.

[59] ZHU Pei-hua, LI Fang-fang, LI Jun-lin. Incentive Distortion Effect of External Executive Pay Dispersion: Evidence from Corporate Violations [J]. Economic Management Journal, 2024: 1 - 19.

[60] QI Huai-jin, ZOU Yan. Empirical Research on the Incentive Effect of External Executive Pay Fairness on Agent Behavior [J]. Accounting Research, 2014 (3): 26 - 32, 95.

[61] QIN Yu, JIN Yu. Economic Fluctuations, External Pay Fairness, and Firm Performance [J]. Journal of Zhongnan University of Economics and Law, 2015 (3): 94 - 102, 160.

[62] GARTENBERG C, WULF J. Competition and pay inequality within and between firms [J]. Management Science, 2020, 66 (12): 5925 - 5943.

[63] MA Guang-qi, CUI Xi-tao. Impact of Employee Size on Pay Dispersion in Labor-intensive Enterprises under Common Prosperity [J]. Economic Research Guide, 2023 (7): 13 - 17.

[64] LIU Lin-qing. Co-citation Analysis and Mapping of Scientific Knowledge [J]. Studies in Science of Science, 2005, 2005 (2): 155 - 159.

[65] HOU Jian-hua, CHEN Yue. Visualizing the Evolution of Strategic Management Research Frontiers [J]. Studies in Science of Science, 2007: 15 - 21.

[66] CHEN C. CiteSpace II: Detecting and visualizing emerging trends and transient patterns in scientific literature [J]. Journal of the American Society for Information Science and Technology, 2006, 57 (3): 359 - 377.

Downloads

Published

04-09-2025

How to Cite

Wang, H. (2025). Research Landscape of Pay Dispersion and Enterprise Performance in China: A Visualization-Based Analysis. Highlights in Business, Economics and Management, 62, 207-222. https://doi.org/10.54097/qemjv018