Title :
Analyst coverage, internal pay gap and company performance: Evidence from Chinese stated-owned listed enterprises
Author :
Yuqing Zhang ; Shiping Liu
Author_Institution :
Sch. of Econ. & Manage., Nanjing Univ. of Sci. & Technol., Nanjing, China
Abstract :
This study investigates the moderating effect of analyst coverage on the relationship between internal pay gap and company performance. Based on a sample of 2993 Chinese stated-owned listed enterprises from 2010 to 2014, we find that both executive pay gap and pay gap between executives and employees are positively related to company performance, which support the tournament theory. In addition, our results indicate that the positive effect of internal pay gap on company performance is stronger for companies with analyst coverage. Moreover, tournament incentives are weaker when there is greater forecast error or forecast dispersion.
Keywords :
forecasting theory; incentive schemes; Chinese stated-owned listed enterprises; analyst coverage; company performance; executive pay gap; internal pay gap; tournament incentives; Boards; Companies; Dispersion; Government; Monitoring; Noise; Stock markets; analyst coverage; company performance; forecast dispersion; forecast error; internal pay gap;
Conference_Titel :
Service Systems and Service Management (ICSSSM), 2015 12th International Conference on
Conference_Location :
Guangzhou
Print_ISBN :
978-1-4799-8327-8
DOI :
10.1109/ICSSSM.2015.7170171
