Research On The Influence Of Agency Cost On Corporate Performance Based On Diversification

With the continuous development of market economy in our country, more and more companies regard diversification as its important development strategies. The study of diversification made by scholars in China is late, and at the beginning of the study is given priority to theoretical research. With the deepening of the diversification, more and more scholars begin to make the empirical study, they get a lot of research conclusions which are different from foreign.In the process of rapid development, agency problem of our country companies is more and more highlighted, agency cost of companies implementing diversification is higher, so the scholars shift gradually the focus to the influence of diversification on corporate performance and the relationship between diversification and agency cost. After companies implement diversification, the agency cost and corporate performance will appear very big change, so the problems need to be solved, such as if increasing the agency cost will weaken the performance, and how to weaken. Research the relations among the diversification, agency cost and corporate performance, in order to make it clear that research on the influence of agency cost on corporate performance based on diversification is necessary, which can provide certain theoretical basis for future related research.By choosing our country listed companies from2010-2013as samples, first combined with the specific situation of the listed company implementing diversification, the samples are divided into companies of implementing related diversification and unrelated diversification; and then, choose appropriate variables of diversification, agency cost and corporate performance; build models just about diversification how to affect the agency cost, and agency cost how to affect corporate performance:carry out the empirical analysis. The empirical conclusion is as follows:companies implementing diversification will increase agency cost; agency cost will damage the corporate performance:the agency cost from unrelated diversification companies will be greater than the related diversification, and the difference of agency cost makes corporate performance of unrelated diversification damaged more serious. After our country companies implement diversification, if companies want to get the performance improve steadily, they need to take measures from two aspects of optimizing diversification and reducing agency cost.