Agency Theory

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  • Topic: Principal-agent problem, Agency cost, Scientific method
  • Pages : 9 (1985 words )
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  • Published : October 17, 2012
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AGENCY THEORY AND ACCOUNTING CHOICE: ISSUES AND HALLENGES

BY

OMEJI IKECHUKWU
MAT NO MGS0803060

DEPARTMENT OF ACCOUNTING
FACULTY OF MANAGEMENT SCIENCES
UNIVERSITY OF BENIN,
BENIN-CITY,
EDO STATE,
NIGERIA.

OCTOBER, 2012.

AGENCY THEORY AND ACCOUNTING CHOICE: ISSUES AND HALLENGES

BY

OMEJI IKECHUKWU
MAT NO MGS0803060

DEPARTMENT OF ACCOUNTING
FACULTY OF MANAGEMENT SCIENCES
UNIVERSITY OF BENIN,
BENIN-CITY,
EDO STATE,
NIGERIA.

OCTOBER, 2012.

CERTIFICATION
This is to certify that the research project was carried out by OMEJI IKECHUKWU (MR) (MGS0803060) in the Department of ACCOUNTING Faculty of Management Sciences, University of Benin, Benin City, Edo State in partial fulfillment for the award of Bachelor of Science (B.Sc.) in accounting

________________________________________________
MR. J.P OTAKEFEMR. O.J. ILABOYA
Project SupervisorProject Co-ordinator

Date:________________Date:__________________

___________________________________
DR. A.O ENOFE
Head of Department
Department of accounting,
University of Benin.

Date:___________________

DEDICATION
This project work is dedicated first to God Almighty who through His Grace, Mercies, guidance and protection has made it possible for me to under take this course. Secondly, To my most honorable parents, Mr. and Mrs. Bartholomew Omeji whose support and sacrifices made it possible for me to have sound university education.

ACKNOWLEDGEMENT
My lovely father, you stood by me when I needed you and showed your outpouring love towards me throughout my stay in the university, I will love and appreciate you forever, my brothers, sister and my cousins; chidi, kelechi, uchenna, chinedu, Emmanuel, Esther, chidimma, Ngozi, all of omeji’s family, ogechukwu, onyinyechi,Amarachi, Eze, Ogonnaya, Chinedu, I.K and my aunty Ngozi nwafor who were there for me when I needed them. Also to my good friends Nnennaya Ogbonnaya, and Faith Edohen. I am very indebted to many without whose contribution to the writing of this project would not have been possible my sincere gratitude knows no bound towards my project supervisor MR J. P. OTAKEFE. Who freely and patiently guided me through the course of this project work may God be with him always. I am thankful to the management and staff of the Nigerian stock exchange benin where I got the data for this research work. I am also grateful to my H.O.D and to all my lecturers for their brilliant performance in their respective subjects throughout the duration of this course. I extend my appreciation to all my course mates, I thank you all. May God be with you all. Amen.

TABLE OF CONTENTS
Title Pagei
Certificationii
Dedication iii
Acknowledgementiv
Table of Contentsv
Abstractviii

CHAPTER ONE
1
1.1Introduction1
1.2Statement of Research Problem2
1.3Objectives of the Study3
1.4Research hypothesis4
1.5Significance of the Study4
1.6Scope of the Study5
1.7Limitations of the Study5
1.8Definition of Terms6

CHAPTER TWO
Literature Review8
2.1 Introduction8
2.2Origin of agency theory8
2.3Agency relationship10
2.4The principal-agent problem12
2.5.The cost of agency relationship21
2.6.Aligning the principal-agent interest26
2.7.The concept of accounting choice46
2.8.Classification of accounting choices51
2.9. The effects of managers accounting choices53

CHAPTER THREE
Research Methodology and procedures 67
3.1Introduction 67
3.2The Population 67
3.3the sampling frame68
3.4 Sources of Data 68
3.5The Research Design68
3.6Method of data collection69
3.7 Instrumentation 69 3.8. Data theorizing...
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