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This paper revolves around Research in Financial Reporting, You are to briefly describe the assumptions of traditional agency theory, how traditional agency theory has influenced two aspects of accounting, influences have the assumptions of traditional agency theory had on approaches to the compensation, provide two criticisms of traditional agency, and discuss one alternative theory to agency theory. Moreover, you are asked to explain how does a stewardship and a valuation focus influence the measuring and reporting of financial accounting information. You are required to answer all the mentioned questions in this paper accordingly.
Question 1 Research in Financial Reporting
It has been said that “agency theoretical literature in accounting has frequently stressed possible difficulties in pursuing stewardship and valuation usefulness simultaneously” . When answering the
following questions you are expected to use appropriate in-text references. Four (4) marks will be allocated based on the appropriateness of your in-text
measurement and compensation; choose two other aspects of accounting
that traditional agency theory has influenced).
Four (4) marks will be allocated based on the appropriateness of your in-text references
Question 2 Research in Auditing
(total 50 marks)
Read the study by Agyei et al. (2013) as well as the study by Gunathilaka
address the aims of each research study.
participants chosen for each study.