Study On The Effect Of Air Quality On Agency Cost Of Enterprises

Under the background that the central leading bod y of the Part y takes high attention to people’s basic dail y needs and vigorousl y strengthens air pollution control,China’s environmental control has made relativel y high prog ress.In last few years,China has made profile achievements in economic aspect.Ecological protection has been accelerated,and citizens have become more committed to vision of green development.It has become an important mission for China to implement national governance to pursue continuance development and improve the green ecological.Considering the macroscopic aspects of national governance and the micro aspects of corporate governance is a different utility function.The public belonging property of the ecotope can lead to enterprise exists opportunism motivation,and it may even lead to governance and corporate governance both serious deviation.So,it is necessary to observe that how the environmental change acts on the business behavior during pollution control.In recent years,although the central and local governments have introduced a number of air pollution control policies,and the trend of air qualit y deterioration has been effectivel y controlled,the public’s sensitivit y to the deterioration of air qualit y is still increasing.When it comes to haze,air pollution is completel y contrary to the people’s pursuit of a better life.The influence of air qualit y on corporate behavior and its mechanism have attracted increasing attention.We focuses on air qualit y-an external environmental elements to explore the logic of the influence of air qualit y on enterprise management.In this paper,the governance data of 2332 listed companies from 74 key cities in China were matched with the urban air qualit y data,and an effective empirical model was established to explore the impact of air qualit y deterioration on compan y agency costs.It is found that there is a arresting complete association relationship between air qualit y and agency cost.Secondl y,we also studies the regulatory effects of internal control quality,product market competition and marketization degree to inquire into the impact of the correlation between air qualit y and agency cost in different environments.It is found that,the higher levels of marketization exacerbates the opposite f orces of air pollution on enterprises.Bankruptcy and settlement risk and strong external supervision caused b y competition in the product market significantl y inhibit the agent’s motivation of individualism.The effect of air qualit y on the agent cost of t he first category of listed companies is weakened.Enterprises with higher internal control qualit y can better fends off external risks and effectivel y supervises the management in the case of air qualit y deterioration.It can also improve the efficiency of operations and assuage the negative impact of the external environment.It can also improve work efficiency and mitigate the negative impact of the external environment.By anal yzing the influence of air qualit y,the external natural environmental factor,on agency cost,this paper enriched the literature on the influence factors of agency cost and air qualit y on micro corporate governance,and also provided some theoretical support for the government’s environmental governance work.