Does wage justice hamper creativity? Pay gap and firm innovation in China

Xu, Mingli; Kong, Gaowen; Kong, Dongmin

doi:10.1016/j.chieco.2017.04.003

Cited by 70 publications

(28 citation statements)

References 47 publications

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“…ChunLiu, Liang Sun [46], Quanxiong Zhou and Weiping Zhu [47] have all found that the salary gap of state-owned enterprises is positively related to enterprise performance. Some empirical studies have also proved that the salary gap is conducive to enterprise innovation [48], which supports the tournament theory. There are also some empirical studies find that the internal salary gap of enterprises have a negative impact on the company's product quality [49] and enterprise market performance [50] through power and earnings management [11] [51] [52] etc.…”

Section: Executive-employee Pay Gapsupporting

confidence: 59%

Does the Regional Sense of Social Fairness Really Narrow the Executive-Employee Pay Gap?

Guo¹

2019

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Based on Chinese traditional Confucianism and under the policy background of "salary limit order", this paper uses tournament theory and social comparison theory to research and analyze the relationship between regional social fairness and the executive-employee pay gap, its effect on employee productivity and the effect of the matching relationship on company performance incentives. Based on the questionnaire survey of China's comprehensive social survey from 2010 to 2016 and the data of all A-share listed companies in China, we find that the regional sense of social fairness will significantly increase the salary gap of companies, and the higher the sense of social fairness, the greater the incentive effect of the salary gap on the production efficiency of ordinary employees, and the correct match between the sense of social fairness and the salary gap will promote the development of the performance of local enterprises. This means that the cultural environment will deeply affect the micro-governance of enterprises. We should attach importance to the role of hidden factors in the executive-employee pay gap, promote the rationalization of the income distribution pattern, and promote the development of the economy stably.

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Section: Executive-employee Pay Gapsupporting

confidence: 59%

Does the Regional Sense of Social Fairness Really Narrow the Executive-Employee Pay Gap?

Guo¹

2019

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“…Apart from the implementation of VAT reform, export performance can be affected by the intrinsic characteristics and financial condition of firms. Therefore, we introduce a vector of variables at the firm level to control for the above‐mentioned impacts following the studies on firms’ behavior and performance (Alfaro et al., 2019a; Geng et al, 2018; Xu et al., 2017). In particular, we include firm size, profitability, and leverage as the control variables in the model.…”

Section: Empirical Frameworkmentioning

confidence: 99%

Unintended consequences of tax incentives on export product quality: Evidence from a natural experiment in China

Kong

Xiong

2020

Rev International Economics

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This study investigates the effects of tax incentives on export product quality. Using a staggered value‐added tax reform in China as exogenous shocks, our difference‐in‐differences estimation shows that tax cuts causally reduce product quality at the firm‐level (product‐level) by 5.3% (8.6%). A plausible mechanism appears to be the output and export expansion, which crowd out human capital and thus undermine quality. The results are more pronounced for non‐state‐owned firms, firms under high tax reinforcement effort, and firms subjecting to high financial constraints. This study provides clear policy implications by shedding light on the unintended consequences of tax incentives on export product quality.

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“…Feldman and Florida [ 37 ] reported a high correlation between innovation and patents, reaching 0.934. In this study, we used patents to measure innovation—a popular approach also used in some recent studies [ 30 , 32 , 38 – 41 ]. In addition, patents represent the successful resource integration and team cooperation, which are successful innovation, and R&D expenditure could be uneconomical [ 42 , 43 ].…”

Section: Data and Modelingmentioning

confidence: 99%

Regional innovation distribution and its dynamic evolution: Policy impact and spillover effect—Based on the perspective of innovation motivation

Yan

2020

PLoS ONE

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This study aims to explore the direct effect and spillover effect of innovation policy in the distribution and dynamic evolution of the regional innovation from the perspective of innovation motivation using the spatial econometric model. Substantive innovation and strategic innovation in one region could affect innovation in another region. In addition, the direct effect and spatial spillover effect of innovation policy could significantly affect innovation; however, they exert a higher impact on substantive innovation. Considering different policy tools, we found that government subsidies exert a significant positive impact on substantive innovation and strategic innovation, whereas financial institution loans exert a significant negative impact on substantive innovation and strategic innovation. And for the impact range, the government subsidies are higher than that of financial institution loans. Furthermore, this study reveals the leading environmental factors affecting regional innovation and provide a policy basis to promote the construction of an innovation-oriented country.

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Does wage justice hamper creativity? Pay gap and firm innovation in China

Cited by 70 publications

References 47 publications

Does the Regional Sense of Social Fairness Really Narrow the Executive-Employee Pay Gap?

Does the Regional Sense of Social Fairness Really Narrow the Executive-Employee Pay Gap?

Unintended consequences of tax incentives on export product quality: Evidence from a natural experiment in China

Regional innovation distribution and its dynamic evolution: Policy impact and spillover effect—Based on the perspective of innovation motivation

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