The aim of the present study is to identify the contributing factors to agency costs in Iran applying panel data technique for financial data of 112 listed companies on the Tehran Stock Exchange for the period of 2011-2017. To measure the dependent variable, three models of measurement namely (1) inverse asset turnover ratio; (2) operational cost to sales ratio; and (3) the index obtained from the factor analysis of inverse variables of asset ratio and operational cost to sales ratio are used. The obtained results indicate that the greater number of board directors’ meeting may improve the level of agency costs (based on two cost models), and it also may increase the level of agency costs (based on one model). Second, the results of the paper show that the higher educational level of boards’ members may also decrease the agency cost. Moreover, we evidence that the presence of women in the board of directors, and the ownership of firms’ share by the members of board of directors may increase the level of agency cost for firms. Since only one (out of three) model suggests these associations, our findings are less severe in these regards. Further analyses document that appointing one of the board director’s members as chief executive officer (CEO duality) plies no effective role in mitigating the agency cost. The similar findings, based on our three cost models, suggest a robust conclusion in this context. Furthermore, two agency cost models demonstrate that the increase in proportion of independent managers’ number leads to decrease in agency costs, while another model suggest a reverse association. We finally find that the compensation of board of directors is positively (in two agency cost models) and negatively (in one agency cost model) associated with agency costs. Similar to prior literature, our findings imply an ambiguous conclusion in this context.

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