The present study is going to investigate the relationship between the agency expenditure and the capital structure in pharmaceutical companies having being accepted in Tehran Stock Exchange. The above mentioned industry has been selected because of the more shareholders attention to the industry during the last year. So the time extend of this study includes the years 1388-1391(2010-2013). Therefore, 20 companies were selected among the above mentioned companies as the qualified sample. The collected data were examined by the software SPSS. The research information was analyzed by the use of the statistical tests. The results suggest that there is a meaningful relationship between the agency expenditure
