Theoretical structure of agency theory Accounting essay
This chapter discusses agency theory and its application to management accounting issues. I begin by explaining how agency models are formulated to address incentive problems caused by moral hazard and adverse selection problems, and Agency Theory. The purpose of agency theory is to explain corporate behavior by emphasizing the relationship between management, the agent, and the shareholder, the principal. This article aims to discuss the theoretical aspects and empirical evidence of agency theory. It aims to explore key ideas, perspectives and issues. This study aims to investigate the effect of capital structure on financial performance and the moderating effect of agency theory on the effect between capital structure and financial performance. It discusses the theoretical aspects of agency theory and the various concepts and issues related to it, and documents empirical evidence on the mechanisms that reduce agency costs.DOI: 10.1002 SICI 1097-0266 199611 17:9 lt 713:AID -SMJ844 gt 3.0. CO 2-9 The study of capital structure has become increasingly important in strategic management research. Paradigms derived from organizational economics have also become popular in explaining business activities. Agency theory and transaction cost economics represent two. The essay begins by discussing the dialectical social theory of lean. -Paul Sartre and then, after discussing L vi-Strauss's theory of structure, he argues that dialectical thinking generates. The realistic representation of SM theory provides it with different levels of analysis to examine the process of elaboration through all the components that emerge and structural and cultural properties that play a role in it. Agency theory is one of the theories that is widely used in the accounting domain. conflicts of interest between these two parties. Agency theory is a principle that people are used to. agents. Most.