Explain how agency theory can enhance our understanding

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Question - Agency theory is a principle that is used to explain and resolve issues in the relationship between business principals and their agents. Most commonly, that relationship is the one between shareholders, as principals, and company executives, as agents.

(a) Explain how agency theory can enhance our understanding of accounting practices.

(b) Formulate in depth explanation on agency theory with regards to accounting disclosure practice.

Any Financial Accounting and Reporting V experts help me to solve this question. Thank you in advance.

Reference no: EM132994192

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