Proceedings of the 5th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2023, December 8–10, 2023, Guangzhou, China

Research Article

Employees Earn More if the Boss Donates More——Evidence from Chinese Listed Firms

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  • @INPROCEEDINGS{10.4108/eai.8-12-2023.2344480,
        author={Yulin  Liu and Dexin  Ma and Min  Zhang},
        title={Employees Earn More if the Boss Donates More------Evidence from Chinese Listed Firms},
        proceedings={Proceedings of the 5th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2023, December 8--10, 2023, Guangzhou, China},
        publisher={EAI},
        proceedings_a={MSIEID},
        year={2024},
        month={4},
        keywords={corporate philanthropic donation; executive-employee pay gap; moderating effect; corporate profitability; market competition; china},
        doi={10.4108/eai.8-12-2023.2344480}
    }
    
  • Yulin Liu
    Dexin Ma
    Min Zhang
    Year: 2024
    Employees Earn More if the Boss Donates More——Evidence from Chinese Listed Firms
    MSIEID
    EAI
    DOI: 10.4108/eai.8-12-2023.2344480
Yulin Liu1, Dexin Ma1,*, Min Zhang2
  • 1: Chongqing University
  • 2: Sichuan Normal University
*Contact email: 20170149@cqu.edu.cn

Abstract

Using data from Chinese listed firms from 2010 to 2020, this paper examines the impact of corporate philanthropic donation on the executive-employee pay gap and its mechanism. Research has found that corporate philanthropic donations have a inhibitory effect on the internal income gap of enterprises, and are moderated by business performance, strengthening the constraints on the internal income gap of enterprises. The degree of market competition serves as a "catalyst" to enhance the regulatory effect of corporate charitable donations on suppressing internal income disparities through business performance, making the relative increase in income of employees in enterprises with higher levels of market competition more prominent. This conclusion is long-term and stable, revealing the win-win situation of corporate charitable donations, which is both "self-interest" and "altruism".