Longman Cheshire. Holthausen‚ R W and R L Watts (2002)‚ “The relevance of the value relevance literature for financial accounting standard setting”‚ in Kothari et al (2002)‚ pp I 3-75. Jones‚ S‚ C Romano and J Ratnatunga (eds) (1995)‚ Accounting Theory: a contemporary review‚ Sydney‚ Harcourt Brace Kothari‚ S P (2002)‚ “Capital markets research in accounting”‚ in Kothari et al (2002)‚ I 105-231. Kothari‚ S P‚ T Z Lys‚ D J Skinner‚ R L Watts and J L Zimmerman (2002)‚ Contemporary Accounting Research
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other stakeholder parties’ direction towards a healthy economic decision in favor of the business. Regulation of these information and standardizing the process would lead to that organization solving the problem of ‘information asymmetry’. (Watts & Zimmerman‚ 1978) The Free-Market perspective The free market perspective to accounting regulation replicates the nature of a product in a market‚ where ‘demand’ and ‘supply’ plays significant roles. Accounting information is treated as any other normal
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executives. In 1984‚ a man by the name of Paul M. Healy conducted a research paper on the association between managers’ accrual and accounting procedures and income reporting. Healy was testing the hypothesis of earlier works by namely Watts (1977) and Watts and Zimmerman (19787) that managers have an incentive to adjust earnings through accruals to increase the size of their bonuses as well as change accounting policies following changes in bonus plan structure. These earlier tests presented conflicting
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Anwer Ahmed‚ Sudipta Basu‚ Patty Dechow‚ Dan Gode‚ Wayne Guay‚ Charles Lee‚ Bob Lipe‚ Mike Mikhail‚ Jowell Sabino‚ Jake Thomas‚ Charles Wasley‚ and Tzachi Zach for helpful comments and discussions. I am especially indebted to Doug Skinner and Jerry Zimmerman‚ editors‚ for detailed comments on several drafts of the paper. I acknowledge financial support from the New Economy Value Research Lab at the MIT Sloan School of Management. *Tel.: +1-617-253-0994; fax: +1-617-253-0603. E-mail address: kothari@mit
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of divergent behaviour that arises as a result of the agency relationship are referred to as agency costs. Furthermore‚ Watts and Zimmerman (1978) developed the theory of positive accounting which is focused on the assumption that ‘all individual action is driven by self-interest and that individuals will act in an opportunistic manner to increase their wealth’. Based on Watts and Zimmerman’s theory‚ Deegan suggests that owners would expect managers to undertake activities that might not always
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Anger is growing over phantom options schemes that keep executive pay a secret from shareholders‚ broadcast‚ ABC Television‚ Sydney‚ 14 Sept 2011. Watts‚ RL & Zimmerman‚ JL 1986‚ Positive accounting theory‚ Englewood Cliffs‚ NJ‚ Prentice Hall‚ as cited in Deegan‚ C 2008‚ Australian financial accounting‚ 5th edn‚ McGraw Hill‚ Sydney. Watts‚ RL & Zimmerman‚ JL 1990‚ Positive accounting theory: a ten-year perspective‚ Accounting Review‚ January 1990‚ pp. 131-56 as cited in Deegan‚ C 2008‚ Australian financial
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Managerial Auditing Journal Emerald Article: Agency Theory and the Internal Audit Michael B. Adams Article information: To cite this document: Michael B. Adams‚ (1994)‚"Agency Theory and the Internal Audit"‚ Managerial Auditing Journal‚ Vol. 9 Iss: 8 pp. 8 - 12 Permanent link to this document: http://dx.doi.org/10.1108/02686909410071133 Downloaded on: 27-05-2012 Citations: This document has been cited by 4 other documents To copy this document: permissions@emeraldinsight.com This document
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The Iran Hostage Crisis was between the United States and Iran‚ which lasted from 1979-1981. It was the first time the United States was forced to deal with Islamic extremists. The crisis occurred because the United States allowed the Shah‚ who had been dismissed as ruler of Iran‚ to enter the United States for cancer treatment. The overthrow of Mohammad Reza Shah Pahlavi of Iran by an Islamic revolutionary government earlier in the year had led to a steady deterioration in Iran-United States relations
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INFORMATION FOR CANDIDATE 1. This exam is worth 50% of the overall semester assessment. 2. The total number of marks available for this exam is 100%. 3. This exam paper contains FIVE (5) questions in THREE (3) pages excluding the cover page. INSTRUCTIONS TO CANDIDATE 1. Answer all questions. 2. Write all your answers in the answer booklet provided. 3. If you make a mistake please put a single diagonal line through the section you wish to be ignored by the examiner. 4. Return all exam
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Over the years there has been a continual debate over the necessity of accounting regulations. Some people have many reasons favouring accounting regulations such as the belief that accounting conventions are needed in order to allocate and control the economic outcomes of resource allocation and information stipulation in the market. However‚ others have arguments against the use of accounting regulations‚ such as regulation leading to oversupply of information as users who don’t bare any cost tend
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