Principal and Agent Basics Sometimes it's not a good idea to represent yourself in a negotiation. If you designate someone else to act on your behalf in a negotiation, you are the principal and the other party is your agent. The principal gives authority to the agent to represent his or ...
But, its practical application can give us a hard time, because sometimes it’s extremely difficult and demanding to assess properly and conclude correctly whether we are an agent or a principal. Basically,you are an agent if your responsibility is limited to arrangingor mediating the provision o...
This paper reveals the problem of the accounting information distortion by using the disagreement of the consignor and the agent, the asymmetry of the information and the imperfection of the contract, and based on this, probes into the countermeasures for controlling the accounting information distortio...
Wuqing WuSchool of Business, Renmin University of China, Beijing100872, ChinaSuning AnSchool of Business, Renmin University of China, Beijing100872, ChinaDe GruyterJournal of Systems Science & InformationDouble-principle agent:False accounting information,supervision cost and corporate performance. Wu W ...
The AICPA’s Financial Reporting Executive Committee (FinREC) sent a commentletterto FASB stating concerns about operational challenges that could be triggered by Proposed Accounting Standards Update (ASU),Consolidation (Topic 810)—Principal Versus Agent Analysis. ...
RW Smith,M Bertozzi - 《Journal of Public Budgeting Accounting & Financial Management》 被引量: 50发表: 1998年 Fair Offers in a Repeated Principal-Agent Relationship with Hidden Actions We test a repeated principal-agent relationship with hidden actions in the laboratory. At each period, the prin...
Financial institutions (principal) vs.rating agencies(agent) Solutions to the Problem Solutions to the principal-agent problem aim to align the interest of both parties. There are two main areas of improvement to address the problem: 1. Contract design ...
Financial institutions (principal) vs.rating agencies(agent) Solutions to the Problem Solutions to the principal-agent problem aim to align the interest of both parties. There are two main areas of improvement to address the problem: 1. Contract design ...
First, to focus on the asymmetric information between the two principals, we examine how the asymmetric information affects the agent’s incentives to provide an effort. Second, we expand the first research question by supposing that the relative weight of the agent’s profit set to each ...
The principal, or legal authorizer, is liable to fulfill contracts agreed upon by an agent acting in their behalf. Learn the details of contractual liability, actual authority, apparent authority in the context of contractual obligations between parties with agents, and principals. ...