Research On Relationship Between Employees’ Compensation And Accounting Conservation In Private Enterprises

Since the reform and opening up, China’s private economy has developed rapidly, the speed of information dissemination has been accelerating, and the uncertainty of the information in the accounting field has become more and more prominent. The uncertainty of accounting has a direct impact on the quality of accounting information, especially the conservatism of accounting information. In the current research results, the salary of employees in enterprise management is very important, in the field of accounting in the research literature on employee salary is very little. Therefore, this paper takes the private enterprise staff salary as the research point of entry, the research on accounting conservatism.On the basis of existing research contents and results, this paper summarizes the relationship between contract theory, principal-agent theory and information asymmetry theory, and summarizes the relationship between employee compensation and accounting conservatism. Through the research, it is found that there are serious moral hazard problems that exist in the problem of the information asymmetry between the principal and agent. In the case of asymmetric information, the compensation contract can alleviate the conflict of interests between the principal and the agent, but the compensation contract has inherent defects. Private enterprise executives are likely to be for their own interests and gloss over the financial statements, resulting in damage to the interests of employees. In order to alleviate these contradictions, this paper studies the relationship between the salary and the accounting conservatism in the private enterprise, such as the wage level, the ownership concentration,the number of employees, the salary gap.In the empirical analysis, this paper, based on the study of the previous model by using Basu’s earnings stock return measurement method, adding the relevant control variables to build the model. Through the data collection, collation, in China’s private listed companies2012-2014 both Shanghai and Shenzhen stock market, non finance and insurance industry of A-share listed companies as the sample data, using statistical software SPSS17.0 analysis the level of wages, equity concentration, number of employees, salary gap on accounting conservatism. The research and analysis mainly include descriptive statistics, correlation analysis, Wage, First, Employ, Gap as the independent variables of the regression analysis.Empirical analysis results show: in China’s Shanghai and Shenzhen a stock camp listed company in wages and accounting conservatism is positively correlated; the largest shareholder shareholding ratio and accounting conservatism negatively correlated; number of workers between the accounting conservatism and significant positive correlation.Finally, based on the above theoretical analysis and empirical test results, this paper from the aspects of accounting standards system construction, the supervision of the controlling shareholders, improving the internal incentive and restraint mechanisms proposed relevant policy recommendations.