Abstract :
This study aimed to test on the effect of corporate governance mechanism against agency cost . This study uses secondary data derived from the annual report .samples used in this study, there are 20 financial sector companies listed in Indonesia Stock Exchange in 2013-2015 by purposive sampling method. Researcher using SPSS version 21 in processing the data and methods of data by multiple linear regression analysis. The results show thatManagerial ownership, institutional ownership, independent commissioner and audit committee have no effect to agency cost.
Keywords: Mechanismcorporate governance, Agency cost