An Analysis Of The Influencing Factors Of Agency Cost

The separation of modern company ownership and management rights has been proved to be an effective model for the development of enterprises.However,agency costs are incurred due to inconsistent interests and asymmetric information among business owners and managers.Since the issue of agency costs raised by Jensen & Meckling,after more than 40 years of development,the research results on agency costs have been very rich.The domestic and foreign scholars mostly focus on the definition,measurement,influential factors,policy suggestions and so on of agency costs Aspects,and put forward a lot of very valuable ideas.In recent years,the cross and integration of "culture and finance" has become a new hot spot in the field of corporate governance research.Different from the previous internal and external mechanisms focusing on corporate governance,the research based on culture perspectives focuses on the culture of corporate governance In terms of features,we study the impact on corporate governance by building a network of cultural characteristics among corporate executives.Inspired by the literature on the impact of culture on corporate governance and the unique "relationship of human relations" culture in China,this paper studies the management agency costs from the perspective of "alumni relations." In particular,this article attempts to verify the listing through empirical research If the existence of "alumni relationship" between the chairman and the general manager of the company will have an impact on the agency costs of the company.Firstly,we sorts out the existing literature and generally studies the research results on the economic benefits of agency costs,culture and corporate governance and "alumni relations".Secondly,this article combines the "Social Identity Theory"(Social Identity Theory),"alumni" group psychological and sociological analysis,which concluded that listed company chairman and general manager of "alumni relationship" on corporate governance and agency costs Impact Mechanism-"Alumni Relations"-Identity-In-group Preferences-Improving Inter-Executive Relations-Reducing Agency Costs.Through this theoretical analysis,this paper assumes that: the chairman and general manager of listed companies is "alumni relations" will reduce the company's management agency costs.In addition,this article also briefs on the development and changes of Chinese universities over the past hundred years,especially the history of university changes since the founding of new China.In the empirical part,this paper collects the information of the graduating colleges and universities and the other model variables of senior executives of Ashare listed companies in Shanghai and Shenzhen stock markets in Guotai An financial database and organizes and compares them by hand to obtain the data of "alumni-relationship" dummy variables.Based on this Data expand the empirical analysis.The results show that the presence of "alumni relations" between the chairman and the general manager can significantly reduce the company's management agency costs.Further research also found that when the nature of corporate property is limited to private enterprises,the impact is still significant,but not significant in state-owned enterprises.This paper analyzes in depth the role of corporate governance behind the unique cultural phenomenon of "Alumni Relations",which is the enrichment and expansion of the research on the combination of culture and corporate governance,and provides the basis for studying agency costs from China's unique "human relations" New empirical evidence.