Study On Creditors Agency Cost Quantization Of Listed Companies

Because of the bond market has not been developed in china, bank loans has become the main ways of enterprise external financing. But the Banks creditor's rights in China is not get good protection,the company escape debts events occurred frequently, therefore shareholders and creditors'interests conflict problem worth researching.This paper recerch mainly from the agency cost, reviewed the domestic and international agency cost problems, deeply studied from both theoretical and empirical creditors agency cost problems.From two aspects of shareholders violations for the benefit of creditors to analysis creditors agent cost structure:First, as contracts analysis between the obligee and the beneficiary agency cost problem. Second, to analysis between the contracts surplus requesterthe and obligee agency cost problem. According to these two factors, analysis of the shareholders of the obligee three violations behaviours:strategic default, the asset substitution, excess cash dividends.For every kind of the infringement behaviours, respectively to find a corresponding financial index to measure the creditors agency cost problem which produced by that behavior. These three financial indicators are interest expense ratio, operating cash inflows variation coefficient and extra dividend pay rate. By using analytic hierarchy process(AHP) to set each index weight coefficient, then to construct the creditor agency cost quantification model. Select Shenzhen and Shanghai listed companies as sample, this paper builds the creditor agency cost model to measuring the size of a creditor agency cost。Then use the creditor agency cost to inspect financial performance index, select net assets profit instead of financial performance indicators, select asset-liability ratio as control variables, use multi-element linear regression. Analysis results from the creditor agency cost and financial performance are significant negative correlation. Finally, according to the creditor agency cost quantitative results, analysis of the agency cost of usefulness and puts forward corresponding Suggestions reduce agency cost.