Agency cost and value of accounting information in the competitive market

Today's competition in the market can affect many factors in companies, because competition is an effective controlling mechanism to control the agency's problems. Therefore, the purpose of this study is to investigate the effect of the Agency cost on the value of accounting information in the competitive market. In this research, the benchmark for the measures of Agency cost includes earning management, capital structure and asset turnover ratios in the Tehran Stock Exchange. Additionally, to measure the product market competition, we used the herfindahl-hirschman Index, and for measuring accounting information, also selected a component of the financial statements, including the book value of each share and dividend payout. dividend payout are used as a benchmark for determining the benefits of each share of the entity's performance. Regression analysis is used to examine hypotheses of the study. The data set includes 90 companies accepted in Tehran Stock Exchange for the period of 2010 to 2015. The findings of this research show that, if there is a competitive market for the product, the agency cost does not reduce the value of the accounting information.