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Resilient leadership: Closing the internal pay gap

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  • Qiao, Penghua
  • Xiu, Yidan
  • Fung, Anna
  • Fung, Hung-Gay

Abstract

This study investigates how resilient leadership affects pay equity within Chinese firms. Our analysis reveals that resilient leadership significantly narrows the internal pay gap between top executives and average employees. By hiring more highly skilled labor and reducing excessive executive compensation, resilient leaders effectively address pay equity issues. Improvements in the pay gap are particularly pronounced in firms with gender-diverse boards, highly educated top management teams, greater media exposure, and those situated in regions with high social trust. These findings contribute to ongoing discussions about the influential role executives can play in enhancing pay equity within organizations.

Suggested Citation

  • Qiao, Penghua & Xiu, Yidan & Fung, Anna & Fung, Hung-Gay, 2025. "Resilient leadership: Closing the internal pay gap," Finance Research Letters, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:finlet:v:77:y:2025:i:c:s1544612325003526
    DOI: 10.1016/j.frl.2025.107089
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    1. Liu, Yanmei & Ji, Zhenhua, 2025. "Internal pay gaps, female executives, and corporate organizational resilience," Finance Research Letters, Elsevier, vol. 85(PE).

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