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Using the data of A-share listed companies from 2011 to 2016 in Shanghai and Shenzhen, we establish a panel threshold model which the threshold variable is internal control, and analyse the nonlinearity relationship between dividend and agency cost. The result shows:There exist threshold effects between dividend and agency cost based on internal control. Cash dividend can reduce agency cost when internal control quality is higher than the threshold, otherwise, cash dividend will no longer have any effect. That means, a valid internal control is the foundation of dividend governance function. Furthermore, the descriptive statistics result implies that, companies with higher internal control quality than threshold are popular. This paper proofs that agency theory is effective in Chinese market, and higher internal control quality higher propensity to pay. So we disagree with the previous hypothesis of "result" and "substitution" between internal control and dividend. [ABSTRACT FROM AUTHOR]

Corporate strategy has a significant impact on capital structure. In the strategic behavior of enterprises in China, international diversification has become more and more important. Theory suggests that because the economic behavior between countries is not completely related to each other, international diversification is helpful to raise the enterprise's debt ratio. Based on 2009-2011 balanced panel data of Chinese listing corporations, the research on the relationship between international diversification strategy and capital structure shows, international diversification significantly reduced the enterprise financial leverage, contrast to industry diversification; and the reason mainly lies in that transnational management increases agency cost of debt, so international diversification reduced the company's debt ratio. At the same time, the relationship between the level of international diversification and corporate debt ratio is significantly positive for multinational corporations. [ABSTRACT FROM AUTHOR]

On the basis of stimulation theories on listed companies, the necessity for stimulation is analyzed for China's listed companies. A pay-based stimulation model is proposed to prove that the model is effective in promoting the development of enterprises. It is concluded that the low level of share-holding in management cannot effectively stimulate the development of listed companies. [ABSTRACT FROM AUTHOR]