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An Empirical Study on the Relationship between Disclosure Quality and Agency Cost--Evidence from Disclosure Evaluation of Shenzhen Stock Exchange |
DU Xing-qiang ZHOU Ze-jiang |
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Abstract Information disclosure is a very important mechanism for capital market, and its quality has a considerable impact on agency cost. taking listed companies in Shenzhen Stock Exchange from 2001 to 2006 as samples,and disclosure evaluation of Shenzhen Stock Exchange as agency variable of disclosure quality, this paper analyzes how the information disclosure quality influences agency cost. By applying multivariable regression and Heckman "two-stage" model, we find that higher disclosure quality can reduce agency cost significantly. We provide direct empirical evidence on the relationship between information disclosure quality and agency cost.
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Received: 26 October 2009
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Corresponding Authors:
ZHOU Ze-jiang
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