The Impact of Equity Structure Reform on the Relationship between Equity Structure and Equity Agency Cost: An Empirical Analysis of Retail Listed Companies

With data of Chinese retail listed companies from 2004 to 2007, We take a theoretical and empirical analyses on the moderating effect of equity structure reform on the relationships between equity structure and equity agency cost for the state-owned and non-state-owned companies. The results of this research show that due to the impact of the equity structure reform, the equity agency cost is increased for non-state-owned companies, and decreased for state-owned companies; the sharp decrease of the ownership concentration degree of the state-owned companies results in a significant change of the relationship between equity agency cost and equity restriction degree; the relationship between the equity agency cost and the proportion of management share-holding has not been changed for both groups of companies.