The Relationship of Agency Theory and Owner Manager in Listed Companies on Tehran Stock Exchange (TSE)

This Research tests the relationship of managerial ownership as independent variable and agency costs, audit expenditures, and directors’ remunerations as dependent variables. The proxy for managerial ownership is the percentage of board members’ ownership and the proxy for agency costs is the ratio of sale, administration and general expenses to sales.The statistical population with respect to some characteristics contains 217 listed companies and the period is 2006-2009. Research has three hypotheses that are tested with statistical models. Results indicate there is not any relationship between managerial ownership and agency costs, audit expenditures and directors’ remunerations.