Empirical Research on Debt Governance, Agency costs and Performance : Evidence from Hunan Listed Companies

More studies have focused on the theoretical and empirical aspects of corporate governance; however, debt governance transfer effect has not yet received as much attention as the debt-equity choice. With making use of 152 samples which consists of panel data (2003 - 2006) from 48 listed companies in Hunan, we empirically studies the effect of debt governance of Hunan companies. The results show debt in Hunan listed company only reduces explicit agency costs, and doesn't act on implicit agency costs. However, debt increases the agency costs on the whole, which means the effect of debt governance of Hunan companies is negative.