Pay Gap and Accounting Conservatism

Abstract

This paper investigates the impact of the pay gap on accounting conservatism based on the basic data of A-share listed companies in Shanghai and Shenzhen from 2008 to 2020 by using multivariate linear regression model and OLS regression method, finding that the two are significantly negatively correlated. By introducing Confucian culture, this paper further explores the moderating role of Confucianism and finds that enterprises influenced by Confucian culture emphasize collectivism, which also increases the accounting conservatism. This paper expands the research of accounting conservatism and explains the relationship between the pay gap and accounting conservatism from the perspective of corporate governance and Confucian culture, encouraging companies to strengthen cultural construction and absorb the essence of Chinese traditional culture.