Answered: Discuss the role of the agency theory…

Discuss the role of the agency theory in explaining the relationship between shareholders and management in accounting and corporate governance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Discuss the role of the agency theory in explaining the relationship between shareholders and management in accounting and corporate governance.

Definition Definition Process by which financial information is analyzed, interpreted, and communicated to managers to support the achievement of an organization's goals. The main objective of managerial accounting is to maximize profits and minimize losses.

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