The role of electronic accounting disclosure in achieving the hypotheses of agency theory: The Iraqi market for securities model

Abstract

The agency theory is based on the contractual relationship between the shareholdersand the executive departments. The first party (the principal) entrusts the second party(the management) to manage and invest their money for the purpose of maximizingreturns and on the basis of the wages and incentives that are agreed upon. Managementto exploit and monopolize the information it owns to achieve personal benefits withoutpaying attention to the damages caused to shareholders' rights.

Keywords

Accounting