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Overview of Positive Accounting Theory by Yuli Sarah is a document available to read on EtoBox.
This document provides an overview of Positive Accounting Theory (PAT). PAT was developed by Watts and Zimmerman in the 1970s-1980s and aims to explain and predict accounting standards and practices based on economic incentives and behavior, rather than prescribe standards normatively. Key aspects of PAT discussed include agency theory, the efficient market hypothesis, and three specific hypotheses - the bonus plan hypothesis, debt covenant hypothesis, and political cost hypothesis - which propose how manag
- Author
- Yuli Sarah
- Language
- EN