The Relationship Among Per Capita Salary, Per Capita Assets And Enterprise Financing Constraints Of China’s Listed Companies

Enterprise is an important strength to promote the development of national economy. It injects our country with a steady stream of vitality, for the country’s development and take-off. Enterprise is also the foundation strength to ease the employment pressure and promote social stability. Our country has been paid great attention to the development of enterprises, and also introduced a variety of measures to create a good environment and more opportunities for the development of enterprises. Although there are impetuses for the development of the enterprise, there are still many resistances, and financing constraints is one of them. When raising funds, the financing constraints which the enterprises’ re suffering from a considerable restriction on their growing scale and expanding their operations, cause a higher cost of financing, and sometimes may even led to the bankruptcy or collapse of enterprises. Financing constraints and the factors which affect the degree of financing constraints therefore become an important research subject in the field of corporate finance.Based on the viewpoint of internal factors, this paper uses per capita indexes indicators to discuss the effect of per capita salary and per capita assets on the degree of corporate financing constraints. On this article, per capita salary stands for the comprehensive quality indexes of the enterprises such as relative business performance and so on. And per capita assets stands for the relative and scale labor intensive of the enterprises. This paper use the finance and operating data of listed companies of our country from 2008 to 2013, to analyze the relationship between per capita salary, per capita assets and the financing constraints respectively. The main conclusions are: first, companies that have greater per-employee compensation, will suffer relatively lesser financing constraints; second, those who have smaller per capita assets, will face larger financing constraints; and third, the negative correlation between per capita assets and financing constraints is very obvious in the companies with higher per capita salary, and the negative correlation between per capita salary and financial constrains is also particularly remarkable in the companies who have lower per capita asset. Finally, this article puts forward some corresponding policy recommendations. This paper points out that the companies should perfect their own organization structures, strengthen internal supervision and management, improve their credibility level and enhance the level of technology to improve their own shortcomings, to raise their operating ability and operating performance, improve the level of per capita salary and per capita assets, reduce the cost of financing, and therefore ease the financing constraints.