An Empirical Study On The Relationship Between Capital Structure And Agency Cost Of Listed Companies In Shandong Province

Agency cost and capital structure have always been a hot issue in the field of financial management and corporate governance.The equity financing of Listed Companies in Shandong province is low,the financing channel is single,and the agency cost is high.From the theoretical analysis,the optimal capital structure of the firm makes the agency cost reach the minimum,and the marginal agency cost is equal to the absolute value of the marginal agency cost.This paper selects 2011-2015 A shares of Listed Companies in Shandong Province as a sample,said the capital structure to asset liability ratio,management fee rate and total asset turnover rate said the agency cost,using SPSS software to carry out empirical research on the relationship between agency cost and capital structure.The results show that between agency cost and capital structure is not a simple linear relationship but the curve.The rate of asset liability ratio,total assets turnover rate of two-to establish the model between the rate of assets and liabilities in the management and control of cost,company size,growth ability,ownership concentration,the proportion of managerial ownership and other variables,draw the following conclusions: from the perspective of agency costs to consider,the optimal capital structure exists the optimal capital structure is determined,the balance between equity agency costs and debt agency cost.When the asset liability ratio is at a low level,the management fee rate and the asset liability ratio have a negative correlation,the total asset turnover and asset liability ratio has a positive correlation.When the asset liability ratio is at a high level,the cost of management has a positive correlation with the asset liability ratio.When the cost of management and the total assets turnover rate are taken as the agency cost,the optimal capital structure of the Sample Firms is 40.42%,respectively,and the rate of the total assets turnover is about $54.31%.This paper studies the capital structure of the company from the perspective of agency costs,hope that through the adjustment of financing and to achieve the objective of reducing agency costs,this perspective has theoretical and practical significance for guiding the adjustment of capital structure of Listed Companies in Shandong province so as to reduce the agency cost.