Académique Documents
Professionnel Documents
Culture Documents
PAT Concept
Agency
Theory
Normative
Theory
Bonus
Plan
Hypothesis
Efficient Market
Hypothesis (EMH)
Positive Accounting
Theory (PAT)
Debt
Covenant
Hypothesis
Political
Cost
Hypothesi
s
2
Agency Theory
Assumptions:
The accountants (and, in fact, all
individuals) are primarily
motivated by self-interest (tied to
wealth maximisation), and that
the particular accounting method
selected (where alternative are
available).
2.
3.
10
11
12
13
Restriction on dividends
Limit additional borrowing
Issuance of stock,
15
16
Criticisms
17
PAT Concept
Agency
Theory
Normative
Theory
Bonus
Plan
Hypothesis
Efficient Market
Hypothesis (EMH)
Positive Accounting
Theory (PAT)
Debt
Covenant
Hypothesis
Political
Cost
Hypothesi
s
18