Reserach On The Agency Cost Of Telecommunication Enterprises In China

With the advance of human civilization,communication technology is developing rapidly.In the current production and life of the society,communication has become an indispensable element,and it is also an important measure of the social and economic development.The telecommunication industry is closely related to other industries in our country which plays an important role in the development of our national economy.In the 21 st century,with the improvement of technology level,the telecommunications industry has developed vigorously with the encouragement of relevant policies,and also promoted the development of national economy.However,we also find a lot of problem such as the cost of manufacturing and management is increasing and senior executive and employees are paid too much.Moreover,the telecom industry's own monopoly and high cost causes the problem of high telecom cost,which is also increasingly questioned by the people.As the basis of production and life,with the rapid development of our country's economy,the telecommunications industry will certainly usher in a new development.The research on agency cost by domestic and foreign scholars has aroused the concern of all sectors of society about the high agency cost in enterprise operation.Especially in China's state-owned enterprises,including telecommunication industry,the problem of agency cost of senior managers is becoming more and more serious.These agency costs mainly include the principal and the agents of economic loss as a result of both sides interests are not unified,more agents seek for their benefit besides wage,too many invalid investment in enterprise management,etc.This series of reasons is also the source of low profit margins and high operating costs of telecom enterprises.This article starts from the generation of agency relationship,and expounds the theory of agency cost.It also analyzes the present situation of the agency cost of the telecom enterprises in China,and the achievements and the existing problems in restricting the agency cost of the operators.This paper selects reasonable indicators and applies appropriate methods to calculate the operation cost of state-owned telecom enterprises in China,so as to provide data and theoretical support for regulatory authorities to improve the constraint mechanism of telecom enterprises to agency costs.This paper deeply analyzes the internal reasons for the excessive agency cost of Chinese telecom operators,and puts forward specific solutions according to the actual situation,so as to reduce the agency cost of operators.In the end,we studythe successful experience of studying the cost control of the agent in the telecom industry,and what's more we put forward the measures to control the agency cost in accordance with China's national conditions and adapting to the socialist market economy.In this paper,we selected the 2012-2016 year accounting report of TOP40 from China Mobile,China Telecom,China Unicom and non-state-owned listed companies in Tai'an database to calculate the operator's agency cost in China's telecom industry.The sales expenses,management costs and financial costs are used to reflect the daily expenses of the operators of telecom enterprises and the ability of the operators to use the funds.Then,the sales rate,the rate of management cost and the rate of financial cost are used to estimate the agency cost of the state-owned enterprise operators in China.