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CEO power and internal pay disparities within enterprises

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  • Li, Xiaoyi
  • Shen, Liping
  • Ling, Yaofan

Abstract

This study, based on data from Chinese listed companies from 2009 to 2022, delves into the impact of CEO power on internal pay disparities within enterprises. Empirical results show that increased CEO power exacerbates internal pay disparities within enterprises; the effect is more significant in private firms than in state-owned enterprises and more pronounced in high-tech firms than in non-high-tech ones. Additionally, the impact of CEO power on internal pay disparities within enterprises exhibits a threshold effect based on firm size.

Suggested Citation

  • Li, Xiaoyi & Shen, Liping & Ling, Yaofan, 2025. "CEO power and internal pay disparities within enterprises," International Review of Economics & Finance, Elsevier, vol. 100(C).
    • Handle: RePEc:eee:reveco:v:100:y:2025:i:c:s1059056025002357
    DOI: 10.1016/j.iref.2025.104072
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    1. Lv, Yahui & Zhang, Siqi & Li, Hanyue & Wang, Shitong, 2025. "Coupling analysis of rural revitalization and talent development in disadvantaged counties in China," Finance Research Letters, Elsevier, vol. 82(C).
    2. Xu, Jian & Duan, Mengru, 2026. "Can employee directors promote corporate innovation: From the perspective of employee rights protection," Finance Research Letters, Elsevier, vol. 87(C).

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