Abstract Digital transformation has given enterprises new development functions, and how it affects the compensation dispersion within enterprises deserves in-depth study. Based on the data of Chinese A-share listed companies from 2009 to 2020, this paper examines the impact of digital transformation on the internal compensation dispersion and its mechanism.The research shows that the digital transformation has significantly widened the internal compensation dispersion, and widened the reasonable compensation dispersion.After a series of robustness tests, the above conclusion is still valid. Mechanism test indicates that digital transformation affects the internal compensation dispersion by improving corporate performance and reducing principal-agent costs, and helps to reduce the excess compensation dispersion and expand the reasonable compensation dispersion. Heterogeneity analysis shows that digital transformation has a more significant impact on non-state-owned enterprises and capital-technology-intensive enterprises, and has a significant inhibitory effect on the excess compensation dispersion of non-state-owned enterprises. This study provides an important decision-making reference for internal income distribution and further promoting the digital transformation of enterprises.
2023, Vol. 40 
