IDEAS home Printed from https://ideas.repec.org/a/igg/jabim0/v13y2022i1p1-15.html
   My bibliography  Save this article

Internal Compensation Gap and Firm Performance With the Mediating Effect of Compensation Level: Evidence From Listed Energy Companies in China

Author

Listed:
  • Wenkai Ma

    (College of Graduate Studies, Walailak University, Thailand)

  • Pankaewta Lakkanawanit

    (Logistics and Business Analytics Center of Excellence (LOGBIZ), Walailak University, Thailand)

  • Muttanachai Suttipun

    (Faculty of Management Sciences, Prince of Songkla University, Thailand)

  • Pornpen Thippayana

    (Logistics and Business Analytics Center of Excellence (LOGBIZ), Walailak University, Thailand)

Abstract

The study aimed to investigate (1) the influence of internal compensation gap on firm performance (FP) and (2) the mediation effect of executive compensation level on the relationship between internal compensation gap and FP of listed energy companies in China. The sample was sourced from all upstream companies in energy industry on the Shanghai and Shenzhen stock markets. The data were collected from the companies' annual reports from 2015 to 2020. Descriptive analysis, correlation matrix, and unbalanced panel data analysis were used to analyze the data. The results show that internal compensation gap has a positive influence on FP and compensation level has a mediating effect on such influence. This study provides insight into the determination of compensation for companies to incentivize executives to demonstrate their abilities for the organization's advantage. Additionally, the findings demonstrate that tournament theory and agency theory can explain how compensation gap and level affect FP.

Suggested Citation

  • Wenkai Ma & Pankaewta Lakkanawanit & Muttanachai Suttipun & Pornpen Thippayana, 2022. "Internal Compensation Gap and Firm Performance With the Mediating Effect of Compensation Level: Evidence From Listed Energy Companies in China," International Journal of Asian Business and Information Management (IJABIM), IGI Global, vol. 13(1), pages 1-15, January.
    • Handle: RePEc:igg:jabim0:v:13:y:2022:i:1:p:1-15
    as

    Download full text from publisher

    File URL: http://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/IJABIM.310934
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Josiah Aduda & Elizabeth Kalunda, 2012. "Financial Inclusion and Financial Sector Stability With Reference To Kenya: A Review of Literature," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 2(6), pages 1-8.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Waqar Younas & K. Ramanathan Kalimuthu, 2021. "Telecom microfinance banking versus commercial banking: a battle in the financial services sector," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 26(2), pages 67-80, June.
    2. Damane, Moeti & Ho, Sin-Yu, 2024. "Effects of financial inclusion on financial stability: evidence from ssa countries," MPRA Paper 120238, University Library of Munich, Germany.
    3. Ugbor I. Kalu & Ambrose Nnaemeka Omeje & Augustine Jideofor Mba, 2018. "Financial Inclusion in the Agricultural Sector in Nigeria: An Index of Penetration," International Journal of Economics and Financial Issues, Econjournals, vol. 8(5), pages 35-44.
    4. Massomeh Hajilee & Farhang Niroomand, 2018. "The impact of interest rate volatility on financial market inclusion: evidence from emerging markets," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 42(2), pages 352-368, April.
    5. Betgilu Oshora & Goshu Desalegn & Eva Gorgenyi-Hegyes & Maria Fekete-Farkas & Zoltan Zeman, 2021. "Determinants of Financial Inclusion in Small and Medium Enterprises: Evidence from Ethiopia," JRFM, MDPI, vol. 14(7), pages 1-19, June.
    6. Iza GIGAURI, 2022. "The Promise of Financial Inclusion for Developing Economies," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 8(6), pages 7-20, September.
    7. Godfrey Akileng & Gillian Mercy Lawino & Eric Nzibonera, 2018. "Evaluation of determinants of financial inclusion in Uganda," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 8(4), pages 1-4.
    8. Josephat Lotto, 2022. "Understanding financial inclusion in East Africa: How does Tanzania compare?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 1075-1084, January.
    9. AHMAD Idris & ALNI Rahmawati & ARNI Surwanti & MAMDUH M. Hanafi, 2023. "Financial Literacy To Improve Sustainability: A Bibliometric Analysis," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 18(3), pages 24-43, December.
    10. Guillermo Boitano & Deybi Franco Abanto, 2020. "Challenges of financial inclusion policies in Peru," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 12(1), pages 89-117, June.
    11. Aaron H. Anglin & Jeremy C. Short & David J. Ketchen Jr. & Thomas H. Allison & Aaron F. McKenny, 2020. "Third-Party Signals in Crowdfunded Microfinance: The Role of Microfinance Institutions," Entrepreneurship Theory and Practice, , vol. 44(4), pages 623-644, July.
    12. Ana Paula Matias Gama & Ricardo Emanuel Correia & Mário Augusto & Fábio Duarte, 2023. "Third-party signals in crowdfunded microfinance: which microfinance institutions boost crowdfunding among refugee entrepreneurs?," Small Business Economics, Springer, vol. 61(2), pages 559-586, August.
    13. Hajilee, Massomeh & Niroomand, Farhang, 2019. "On the link between financial market inclusion and trade openness: An asymmetric analysis," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 373-381.
    14. Marus Eton & Fabian Mwosi & Constant Okello-Obura & Abanis Turyehebwa & Gilbert Uwonda, 2021. "Financial inclusion and the growth of small medium enterprises in Uganda: empirical evidence from selected districts in Lango sub-region," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-23, December.
    15. Shahid Manzoor Shah & Amjad Ali, 2022. "A Survey on Financial Inclusion: Theoretical and Empirical Literature Review," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(4), pages 310-330, December.
    16. Abubakar Adamu Magaji & Daneji Bashir Ahmad & Muhammed Ahmed Ibrahim & Chekene Imam-Ahmad Buba, 2020. "Driving faster financial inclusion in developing nations," Technology audit and production reserves, Socionet;Technology audit and production reserves, vol. 2(4(52)), pages 35-40.
    17. Ktut Silvanita Mangani & Adolf Bastian Heatubun & Martua Eliakim Tambunan, 2021. "Branchless Banking Process in Rural Areas: A Price Barrier?," Journal of Public Administration and Governance, Macrothink Institute, vol. 11(2), pages 317330-3173, December.
    18. Khalid Lahrour & Latifa Horr, 2023. "The financial inclusion paradigm: the evolution of concepts in a historical and universal context [Le paradigme de l'inclusion financière : L'évolution des concepts dans un contexte historique et u," Post-Print hal-04346087, HAL.
    19. Damane, Moeti & Ho, Sin-Yu, 2024. "The impact of financial inclusion on financial stability: review of theories and international evidence," MPRA Paper 120369, University Library of Munich, Germany.
    20. Minhaj Ali & Shujahat H. Hashmi & Muhammad R. Nazir & Ahmer Bilal & Muhammad I. Nazir, 2021. "Does financial inclusion enhance economic growth? Empirical evidence from the IsDB member countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5235-5258, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:igg:jabim0:v:13:y:2022:i:1:p:1-15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journal Editor (email available below). General contact details of provider: https://www.igi-global.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.