| dc.description.abstract | The board of directors plays a crucial role in determining the direction of company development, as well as employee compensation and benefits. In recent years, with the rise of corporate social responsibility, increasing attention has been paid to the fairness of employee compensation, benefits, and distribution. For instance, since 2017, the U.S. Securities and Exchange Commission has required publicly traded companies to disclose the ratio of CEO compensation to that of the median employee. This requirement has heightened societal concerns about wage equality.
This study examines the diversity factors within the boards of directors by calculating the board diversity index using Simpson′s Diversity Index. The study aims to explore whether board diversity affects the wage gap between top management and employees. Using data from Taiwanese listed and over-the-counter companies from 2006 to 2022 as the research sample, empirical results reveal a significant positive correlation between board diversity and the wage gap between top management and employees. This indicates that higher board diversity is associated with a larger wage gap. Thus, the study provides new insights into the issues of board diversity and wage fairness in Taiwan, demonstrating that companies with higher board diversity do not necessarily exhibit a more equitable wage distribution. | en_US |