| dc.description.abstract | This study utilizes data from the TEJ database, focusing on the period from 2011 to 2021, to examine the determinants of executive-to-employee compensation ratio in Taiwan′s manufacturing sector, including both listed and over-the-counter companies. In addition to conducting an OLS model analysis, a company fixed-effects model is employed, and the sample is further divided into the electronic industry and non- electronic industry for further analysis. Finally, using data from the Public Information Observation System for the median employee salaries of listed and over-the-counter companies in the years 2019 to 2021, regression analysis is performed on the entire sample of manufacturing companies.
The study findings indicate that as companies grow in size and performance, and as future growth opportunities increase, the wage gap also tends to widen. From a corporate governance perspective, larger board size and better corporate governance practices are associated with a smaller wage gap. However, when a company is a family-owned business or when the CEO-chair duality, it weakens the supervisory effect on executives and leads to an increase in the wage gap. On the other hand, the salaries of grassroots employees increase with their labor skills. Therefore, higher levels of employee education can help reduce the wage gap. When designing compensation structures, companies can assess the factors influencing the wage gap and adjust it accordingly, along with implementing incentive policies, to promote better company development. | en_US |