Description
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Which subject:research methods in accounting and auditing
Deadline: task2,3,4
Task 2 the topic is capital market
Task 3 Variance Analysis
Task 4 Agency Cost
In task 2 The explanation is clear and this also applies to task3,4.
If there is any program to use : on
Calculations or thury: only thirty
How many words: 1000
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Turniti report needed Similarity less than5% .
All the requirements in attach file .
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Explanation & Answer
Attached. Please let me know if you have any questions or need revisions.
ACCOUNTING
1
Agency Cost
Name
[Institutional Affiliation(s)]
ACCOUNTING
2
Introduction
Agency cost is the type of cost incurred by a company when it hires an agent to act on its
behalf. Agency costs is imperative in areas where a conflict may arise. Agency costs are also
useful to mediate conflict between shareholders and the management. There are two types of
agency costs: direct and indirect. Agency costs help in ensuring that the management doesn’t use
companies finances for their own benefit.
Research Question
How does agency costs play a role in corporate governance?
Aim
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The aim of this research question is to provide insights on the role of agency costs in
corporate governance.
Objectives
1. To identify how agency costs are incurred.
2. To understand the role of agency costs in ensuring corporate governance.
3. To examine how agency costs, help in corporate governance.
Literature Review
(Garanina, & Kaikova, 2016) discuss the role of corporate governance in incurring
agency costs. According to the study performed by the authors, factors such as: the size of the
board, gender equality in the board and board size, play a role in agency costs. The findings of
the study revealed that increased agency costs were observed on firms with large board sizes. In
addition, composition of the board also determined agency costs.
ACCOUNTING
3
(Schäuble, 2019) the article focuses on audit firms and the management of this firms and
the effect they have on agency costs. The study revealed that the size of the audit firm and the
acti...