Has Top Management Team Gender Diversity Narrowed the Within-Firm Pay Gap?

Despite increasing recognition of gender diversity in top management team (TMT) as a valuable human capital resource, research has yet to sufficiently examine its impact on the within-firm pay gap. This study explores the impact of TMT gender diversity on the within-firm pay gap using a sample of Chinese A-share listed companies from 2013 to 2022. We find that greater gender diversity is expected to narrow the within-firm pay gap, primarily through curbing excessive executive pay. Enhanced corporate supervision and improved information transparency serve as key mechanisms through which gender diversity influences pay disparity. Heterogeneity analysis reveals that the inhibitory effect of TMT gender diversity on the within-firm pay gap is more pronounced in technology-intensive industries, low-competition industries, small-scale firms, newly listed firms, and non-state-owned firms. Overall, this study not only contributes to the understanding of the economic consequences of TMT gender diversity but also enriches the literature on the determinants of within-firm pay gap.