Effect Of Chinese Listed Companies Equity Agency Cost Factor

"Separation of ownership and management" has become a modern corporate system enterprises salient features. In the case of "ownership" and "management rights" isolated, due to the existence of information asymmetry between owners and managers, it will cause a so-called agency problem. This article focuses on the ownership structure, debt structure and profitability in three areas to study the effects of equity agency cost factor problem. Through descriptive statistics, factor analysis, principal component analysis, multiple regression and other methods to find ways to reduce the equity agency cost: an appropriate increase in profitability, management’s stake increase, increase debt and reduce the concentration of ownership, increase blockholders degree and so on.On the basis of the existing literature and summarizes draw repeatedly reading on the use of China’s listed companies empirical research data, select all the listed companies in 2014 in the Shanghai Stock Exchange and Shenzhen Stock Exchange traded as research subjects, Equity Agency Cost It represented herein by asset utilization as explained variable, equity structure(ownership concentration, ownership balancing degree, board size, the proportion of independent directors, the management stake) Debt Structure(asset-liability ratio, long-term debt ratio, liquidity asset-liability ratio) profitability(ROE) as explanatory variables, using SPSS statistical software, through descriptive statistics, factor analysis, principal component analysis, multiple regression analysis and other methods, to find ways to reduce agency costs of equity: appropriate improving profitability, increasing its stake operators, increase debt and reduce the concentration of ownership, increase equity balance degree and so on. This raises the feasibility of the proposal for listed companies to help them minimize agency costs of equity, thereby enhancing the value of the company, the last for future related research in the future.