The influence of manager-employee salary gap on the performance: By the data from Chinese listed companies

It is lack of depth empirical study although the salary gap between the top managers and ordinary employees arouses widespread concern. This paper tests the relationship between the manager-employee salary gap and the performance by the data from Chinese listed companies. The results show that they have significant positive relationship, and support the Tournament Theory. The research results have clear policy implications: relaxation of the wages control of state listed companies will help to improve of their performance.