Notice of RetractionAgency costs on the company´s financial management

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

Generally, many expenses exist in the distribution process of assets among different relevant parties. The separation of ownership and management will result in the principal-agent relationship, which can lead to agency cost. This is just the focus of this paper: How to understand agency cost and how to cope with it. First of all, the paper discussed the correlated theory and concepts. Furthermore, some aspects in which agency cost can affect financial management were analyzed. The last but not least, some measures which can reduce agency cost and increase firm´s value were submitted. The major conclusion is that agency cost can affect all fields of financial management, and people must pay more attention to it.