IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6239-701-9_63.html

The Impact of Common Ownership on the Internal Pay Gap: Evidence from China

In: Proceedings of the 2026 11th International Conference on Social Sciences and Economic Development (ICSSED 2026)

Author

Listed:
  • Xintong Cheng

    (China Agricultural University)

Abstract

Common ownership across firms has become an important external governance force. This paper studies the impact of common ownership on the internal pay gap between executives and ordinary employees using a sample of A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2012 to 2024. I find that a denser common ownership network significantly reduces the internal pay gap. Mechanism analyses reveal that common ownership narrows the pay gap by improving managerial efficiency, reducing tunneling behavior, and promoting human capital upgrading. The effect is stronger in firms with higher internal control quality, no analyst coverage, and stronger ownership checks and balances. These findings highlight the role of common ownership in corporate governance and income distribution.

Suggested Citation

  • Xintong Cheng, 2026. "The Impact of Common Ownership on the Internal Pay Gap: Evidence from China," Advances in Economics, Business and Management Research, in: Joanna Rak & Md Rabiul Islam & Noralina Omar & Dragana Ostic (ed.), Proceedings of the 2026 11th International Conference on Social Sciences and Economic Development (ICSSED 2026), pages 620-636, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-701-9_63
    DOI: 10.2991/978-94-6239-701-9_63
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;

    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:spr:advbcp:978-94-6239-701-9_63. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.