Transparency should not be "the general rule to which secrecy is the occasional exception" [12] unless it is the best agency cost-reducing mechanism across almost all situations.
Result indicates that commercial corporations incline to liquidity debt; there is a negative relation between general debt ratio, liquidity debt ratio and agency cost.
From an agency perspective the key issue is how outside investors can minimize agency costs emanating from adverse selection and opportunism.
To the extent that there is a gap in this alignment, agency costs will accrue.
The paper analyzes the cause of the FCF agency costs and tries to find the relation between the FCF agency costs and the operating decision-making and the solution to control it.
