The Effect Of Agency Cost On The Capital Structure Based On The Research Of Stated Owned Listed Companies

The state-owned quoted company is facing serious problems of agency by agreement,because of the special property right structure and nature of company.Measures of reducing the agency cost,improving the efficiency of governance and adding the value of company are of great practical significance.The objective of this article is discovering methods of reducing the agency cost of the state-owned quoted company by optimizing capital structure.A large number of literatures have proved the close relationship between capital structure and agency cost,the article analyzes the formation mechanism of the agency cost effect of capital structu-re on the basis of explaining the connotation.Capital structure mainly affects agency cost by intermediary fac tors such as manager incentive,shareholder supervision,cash flow,threat of bankruptcy liquidation and financing cost.What's more,features such as lack of owners,poli-tical intervention and budget constraints can also influence the relationship between capital structure and agency cost.Using the reference of agency cost model of Jensen and Meckling,the article makes an empirical analysis on the agency cost effect of the capital structure based on the sample of 832 companies listed in the A stock market,and dividing the sample into monopolistic industry companies & competitive industry companies,local state-owned com panies & central state-owned companies and state holding companies & state-owned share companies according to market structure,government level and the shareholding process of state-owned shareholders.The result of empirical analysis shows that ownership concentrate-on,institutional investors' shareholding ratio,asset liability ratio and bank debt ratio are signi-fycantly negatively related to agency costs in state-owned listed companies,managers' share-holding ratio is nonlinear related to agency cost.The regulation effect of the capital structure on the agency cost in the state-owned listed companies and the central state-owned listed companies is relatively insensitive,with the proportion of state-owned shares increasing,the effect of debt leverage on agency cost has been enhanced gradually.On the basis of the resear-ch conclusions,the article puts forward related proposals of reducing the agency cost of diffe-rent types of state-owned listed companies,such as optimizing the company's capital structu-re,improving the board of directors mechanism,introducing institutional investors as import-ant shareholders,reducing government administrative intervention,improving the state-owne-d equity representation system,establishing a manager market,perfecting credit mechanism and bankruptcy mechanism and so on.