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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the interest of the organisation. Market mechanism would ensure the information published to be prudent. Managers would effort to provide adequate and reliable information to attract investors and therefore to maximize welfare. According to Watts and Zimmerman (1979)‚ corporations produced financial statements voluntarily‚ for example in the US before disclosures became an obligation by government mandate. This means ‘not producing information will be penalized by higher costs of capital‚ resulting
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a set of listed firms in Nigeria. There are several theories that help us to develop hypotheses on the effect of Agency theory and accounting choice as noted by Gopalakrishnan (1994): the positive accounting theory (Leftwich‚ Watts and Zimmerman (1981) and Watts and Zimmerman (1978))‚ the signalling theory (Ross (1977))‚ and legitimacy and institutional theory. These theories are the background of several accounting studies on determinants of and effect of agency theory and accounting choice. Therefore
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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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Commonwealth‚ but diffuses onto the other banks in the industry in general as well. ACCOUNTING THEORY APPLICATION: As per EFFICIENT MARKET HYPOTHESIS‚ the Australian equity market is generally consistent with its semi-strong efficient form (Watts and Zimmerman‚ 1986; p.19). All publicly available information‚ including all financial statements and other financial disclosures‚ will be rapidly and fully impounded into share price in an unbiased manner in the semi-strong efficient equity. In particular
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The ultimate goal of positive science (i.e. INDUCTIVE) is • The development of a ‘theory ‘ or ‘hypothesis’; • that yields valid and meaningful “Predictions’ • about phenomena not yet “observed”. Consistent with Friedman’s view‚ Watts and Zimmerman asserts that: The objective of “positive accounting theory” is to “explain” and “predict” accounting practice. • “Explanation” means providing reasons for observed practice. For example‚ positive accounting theory seeks to explain
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(PAT) and compares it with three standard accounts of science- Popper (1959)‚ Kuhn (1996) and Lakatos (1970). PAT has been one of the most influential accounting research programs during the last four decades. One important comparison to which Watts and Zimmerman (1986) have appealed to popularize and legitimize their approach is that their view of accounting theory is the same as that in science. Thus‚ it is important to examine how far accounting could have been studied in the mould of science and
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Nothwehr‚ “Emergency Economic Stabilization Act of 2008” (2008) Ross Watts and Jerold Zimmerman‚ “Agency Problems‚ Auditing‚ and the Theory of the Firm: Some Evidence” (1983) pp. 618. Edward Boyd‚ History of Auditing‚ in History of Accounting and Accountants pp78-88 (Richard Brown ed. 1905) Ross Watts and Jerold Zimmerman‚ “Agency Problems‚ Auditing‚ and the Theory of the Firm: Some Evidence” (1983) pp Ross Watts and Jerold Zimmerman‚ “Agency Problems‚ Auditing‚ and the Theory of the Firm: Some Evidence”
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present throughout the history of time. The lyrical ballad "The Times They Are A-Changin ’" was written by Bob Dylan in the 1960 ’s‚ a time in which there was a major shift in political and social reform. Dylan‚ who was actually born as Robert Allen Zimmerman took on the role of ’the ’ folksinger-songwriter of the protest movement‚ after writing "The Times They Are A-Changin." This lyrical ballad established Dylan as the ultimate songwriter of the 60 ’s protest movement. Not only did he emerge as one
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