Research on Relationship between Top Management Team Pay Gap and Corporate Technology Innovation

摘要

Tournament theory and behavioral theory held quite different ideas towards the effect of top management team gap. Based on these two theories, this paper proposed two dyadic competitive hypotheses on the relationship between top management team pay gap and corporate performance. Using the data of 114 China listed companies in 2006-2007, we found there is positive relationship between them, which is consistent with tournament theory. The results of this paper will provide some empirical evidences for improving the incentive of corporate top management team in China.