The effect of finance leasing efficiency on the agency cost

In the modern enterprise system, business management and ownership are separate. Thus, the agency relationship comes out. Under the asymmetric and insufficient information, the manager would be contrary to the pursuit of business objectives and maximize their own interests, resulting in agency costs. Western countries have been respected that debt financing plays very good constraint on managers, and the leverage theory are becoming more and more mature, which has been supported by empirical validation. But the actual situation in China is different with which in the West where capital markets are mature. Whether debt financing is still able to receive recognition in China, although previous studies exist, only classified from the corporate nature. Therefore, this article classify the firm from size categories, while reducing the starting point, gives out a more detailed study of the impact of debt financing efficiency finance leases on corporate performance, to draw more convincing conclusions.