Study On The Relationship Of Equity Concentration,Gap Of Staff Salary And Financial Competition

With the rapid development of Chinese economy, the fast-changing capital market not only provides broad development space for Chinese private listed companies, meanwhile, also brings huge challenges to them. In order to gain more financing opportunities for companies in the capital market, it is of great importance for many private companies to investigate how to improve the competitive advantages of companies. Therefore, financial competitiveness as an important part of the enterprises’ competitiveness, have drawn more wide attention. Despite studies on the financial competitiveness of private companies have been explored for many years, but there are still lots of problems on the management mode of companies such as the incentive mechanism. This paper investigated the relationship between the concentration of equity, the gap of staff salary and financial competitiveness taking the private listed companies as research object, which was expected to improve the financial competitiveness of private company, then making them occupy more market share and create more value.This paper studied the relationship between the concentration of equity, the gap of staff salary and financial competitiveness. Firstly, the domestic and foreign research results were arranged and summarized. Then definition of related concepts and basic theories were introduced. After that, on the basis of principal-agent theory, efficiency wage theory, tournament theory and behavior theory raised by previous scholars, taking 3544 samples of Chinese private listed companies in years from 2011 to 2013 as research objects, this paper proved the relationship between the concentration of equity, the gap of staff salary and financial competitiveness, as well as the relationship between ownership concentration and the staff salary gap as a whole, and financial competitiveness, by various methods including descriptive statistical analysis, factor analysis, correlation analysis, multiple linear regression analysis, to explore the influence of concentration of equity and gap of staff salary on the financial competitiveness of private listed companies. The research results showed that the relationship between salary of ordinary staff and financial competitiveness was positive correlation; the relationship between salary of management layer and financial competitiveness was positive correlation; there was no obvious relationship between gap of staff salary and financial competitiveness, however, their relationship became negative correlation after equity concentration was added as a variable. At the end of this paper, the author suggested that when a private company is in a certain degree of equity concentration level, the financial competition of our private listed companies could be enhanced only by improving the salary of staff, and meanwhile reducing the gap of staff salary.