The Manufacturing Enterprise of China Internal Control and the Agency Costs—Based on the Empirical Study of Industry Data from 2010 to 2014

Due to the separation of ownership and managerial authority of agency problems and the agency cost control has been the practice and academia is committed to the pursuit of goals. And the internal control as an important mechanism of supervision and control within the enterprise, whether can effectively reduce the agency cost; In different marketization of external audit, different regions and different nature of property right of enterprise, the internal control of agency costs the inhibitory effect of the existence of a different, has become the current academia. This paper studies the relationship between internal control and the agency costs, and further investigation in different audit quality, different areas and different nature of property rights cases, whether internal control effect on agency cost of change. The study found that the internal control can effectively reduce the agency cost, and in less developed areas, low audit quality and state-owned enterprises play a significant role in the sample. In this paper, to effectively reduce the agency cost, improve the market mechanism to provide policy advice, at the same time improving the quality of internal control of listed companies has played a positive role in promoting.