Research On Institutional Environment,Information Disclosure Quality And Agency Cost

The separation of ownership and management makes the agency relationship between shareholders and management.With the emergence of this agency relationship is the emergence of agency problems.Institutional environment and information disclosure are two important ways to alleviate the agency problem of enterprises.From the perspective of institutional environment,enterprise management will make different degrees of self-interest behavior according to the different institutional environment.In areas with good institutional environment,management will be more constrained by institutional environment.Enterprise agency problems will also be reduced accordingly.From the perspective of information disclosure,the improvement of the quality of information disclosure can better help investors to understand the specific situation of the company and reduce the information.Asymmetric problem,reduce shareholder's supervision expenditure,restrain management's self-interest behavior,so as to reduce all kinds of agency cost.The overlapping mechanism of institutional environment and information disclosure can reduce the agent's self-interest behavior by reducing the information asymmetry between the principal and the agent,thus reducing the agency cost.Therefore,this paper studies the interaction between the quality of information disclosure and the institutional environment in restraining agency cost,and verifies whether there is a substitution or complementarity between the two.In this paper,we first study the relationship between the quality of information disclosure and agency cost from the perspective of institutional environment.Secondly,it introduces the prosperity of market economy,the degree of perfection of legal system,the level of financial development and the intensity of government supervision to describe the institutional environment,which further deepens the study of the impact of institutional environment on agency costs.Based on the existing researches,this paper analyzes the relationship between the institutional environment,the quality of information disclosure and the agency cost,and then selects the listed companies on the main board of Shenzhen Stock Exchange from 2013 to 2017 as the research samples.The relationship between institutional environment,quality of information disclosure and agency cost is studied by descriptive analysis,correlation analysis and regression analysis.It is found that the quality of information disclosure is negatively related to the agency cost,that is,the higher the quality of information disclosure is,the lower theagency cost is.Secondly,it is found that in the areas where the institutional environment is not good,the institutional environment is not good.In good areas,the legal system is more perfect,the financial level is more developed,the market economy is more prosperous,the government supervision is stronger,and the enterprise agency cost is reduced;Finally,it is found that the institutional environment and the quality of information disclosure have an alternative effect on the agency cost,that is,the institutional environment and the degree of prosperity of the market economy,the degree of perfection of the legal system,Financial development level and government supervision can restrain the impact of information disclosure quality on agency costs.Finally,on the basis of the conclusion of this paper,from the aspects of improving the institutional environment and perfecting the corporate governance,this paper puts forward the relevant countermeasures and suggestions to reduce the agency cost,and aims at the limitations and deficiencies of the research in this paper.The direction of further research is put forward.