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The purpose of the current study is to examine the relation between management behavior determinants and agency cost. Moreover, the current study investigates the moderating impact of company performance on such relationship. To achieve the objective of this study, three determinants have been used for management behavior, namely: management ownership, financial leverage, and information asymmetry. The sample of the current study is 27 companies distributed to three sectors: service, bank, and industry sectors in Iraq. The results revealed that there is a significant relationship between management ownership and agency cost; and this relationship is affected by the moderating role of firm performance. The results also confirm there is no relationship between financial leverage and information asymmetry, and agency cost. Besides, there is no impact of company performance on such relationship.
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A 2016 study studied this question.
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