Research On The Impact Of Agency Costs On Debt Default Risk Of Listed Enterprises In China

The development of China’s financial market began to become stronger in recent years,and the financial system is constantly improving,but at the same time,it has also brought many problems to Chinese enterprises,among which the most prominent are the agency problem and debt default problem.Since2014,the agency problem and debt default of listed Enterprises in our country have become more and more serious.Therefore,this paper studies the agency cost,which is conducive to the enterprise management to standardize their own behavior,actively seek interests for enterprises,and put forward new solutions to the agency problem and debt default of Listed Enterprises in China.Accurate understanding of the impact of enterprise agency cost on debt default risk is of great significance to the agency problem of listed enterprises in China and reducing the debt default risk of listed enterprises.We selected Chinese listed companies from 2010 to 2020 as the research sample to study the impact of agency cost on default risk,and makes a heterogeneity analysis from four aspects: the nature of property rights,the scale of enterprises,the degree of corporate governance and the level of marketization.The empirical results show that the agency cost of listed enterprises in China has a significant positive impact on default risk.The agency cost of an enterprise will affect the risk of debt default by affecting the innovative investment and net cash flow of company.Heterogeneity research shows that the default risk of state-owned enterprises is more vulnerable to the change of agency cost;Compared with large-scale enterprises,the agency cost of small-scale enterprises has a stronger positive impact on the default risk,and the default risk of small-scale enterprises is more vulnerable to the change of agency cost;The default risk of enterprises with high degree of marketization is more likely to be positively affected by the change of agency cost;The agency cost of enterprises with low governance level has a stronger positive impact on the risk of default.In this paper,the instrumental variable method and one-stage lag explanatory variables are used to alleviate the possible endogenous problems,and then the robustness test is carried out,and the conclusion remains unchanged.Finally,the corresponding suggestions are put forward according to the conclusions.