TITLE:
The Choice of Salary Transparency —Based on the Value of Equity Theory
AUTHORS:
Qi Wang
KEYWORDS:
Equity Theory, Salary Transparency, Financial Reporting, Enterprise Life Cycle
JOURNAL NAME:
Open Journal of Business and Management,
Vol.4 No.3,
July
19,
2016
ABSTRACT: Based on the view of equity theory, this article divides salary transparency into four conditions
through two arrangements—result equity and process equity. The paper draws a conclusion that
the effect of salary transparency on staff's sense of fairness will vary with enterprise actual situation
and then it discusses the key factors of the influence of choosing the salary transparency. On
this basis, according to the financial reporting, the article recognizes enterprise life cycle and
chooses the corresponding salary transparency plan as well.