Academic Journal of Business & Management, 2025, 7(1); doi: 10.25236/AJBM.2025.070105.
Yang Jingyi, Feng Sijia, Jiang Hui
International Business College, South China Normal University, Guangzhou, 510631, China
Based on a sample of A-share listed companies from 2011 to 2022, this study empirically examines the influence of the executive’s external pay gap on enterprise innovation performance. It also investigates the effects in different environments and the role of market competition, comparing high-tech enterprises with general enterprises. The results show that when executive compensation exceeds the industry average, the external pay gap can motivate executives to improve enterprise innovation performance. However, when executive compensation is lower than the industry average, the external pay gap becomes more significant and has a negative inhibitory effect on innovation performance. The higher the market competition intensity, the more likely executives are to increase investment in innovation, thereby mitigating the negative impact of the executive pay gap on enterprise innovation performance.
executive compensation; External pay gap; Enterprise innovation performance; Market competitive environment
Yang Jingyi, Feng Sijia, Jiang Hui. The executive external pay gap and firm innovation performance: An empirical study from the perspective of the market competition environment. Academic Journal of Business & Management (2025) Vol. 7, Issue 1: 37-44. https://doi.org/10.25236/AJBM.2025.070105.
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