The relationship between pay gaps and firm performance has aroused concern and become a hot topic in the field of compensation research. There is a lot of relevant literature regarding the effects of pay gaps on the firm performance, but researchers have not reached a consensus. Therefore, based on the existing literature, this paper expounds the concepts of pay gaps and firm performance, then sorts out their relationship from the perspectives of the external pay gap, the top management team pay gap and the executive-employee pay gap respectively. On the basis of the review and summary of the existing research, the future prospects that can be further explored are proposed at the end of the study.

Yimin Xia. A Literature Review of the Relationship between Pay Gaps and Firm Performance. Academic Journal of Business & Management (2023) Vol. 5, Issue 1: 81-87. https://doi.org/10.25236/AJBM.2023.050112.

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