The Choice of Salary Transparency —Based on the Value of Equity Theory

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 situa-tion 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.