Impact Of Agency Cost On Business Fluctuation

ABSTRACTWith the emergence of agency theory in the 70s, there has been a general consensus among researchers that agency cost exists and manifest in diverse forms. In the study, we examine, the association between agency cost and business fluctuations. Agency cost is measured in two dimensions, its monitory cost and its bonding cost, while business fluctuation is measured in terms of the change in the net profit after tax. The cross-section survey research design was adopted as the blue print for data collection and the data so collected were analyzed by using the ordinary least square regress…