Positive Accounting Theory Flashcards
1
Q
Positive Accounting
A
-explain and predict which firm will and won’t use a particular method
2
Q
Contracting theory
A
organisation is the centre of various contractual relationships
3
Q
Agency Theory
A
monitoring costs to the principal and bonding costs to the agent
4
Q
Owner-manager
A
include horizon problem, risk aversion, dividend retention
5
Q
manager-lender
A
excess divided payouts, under investment, assets substitution and claim dilution
