What is the relationship among agency theory, economic consequences, and signaling?

Business

1 answer:

PIT_PIT [208]3 years ago

6 0

Answer:

In agency theory, the company is a nexus or locus among competing groups. At the cost of shareholders money, management try to maximize their its compensations. In economic consequences, the some gorups can benefit at the expense of others. This is due to the accounting standard. Economic consequences tend to complement agency theory. In signaling, it is primarily towards one group. It is neither be in agreement with agency theory or economic consequences.

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