Immigration Essay Example | Topics and Well Written Essays - 250 words - 6

Immigration - Essay Example Barring some religious differences between catholic and protestants, they were accepted more readily within the American society as against Chinese immigrants. The Irish and German immigrants in America were conspicuous in their attitude towards work. The German immigrants were endowed with more money and therefore sought land and work in farmland. There were also politically active and endorsed the ideology of democrats who believed in equality and in the welfare of the commoners. The Irish immigrants, on the other hand, were driven to America due to poverty and scarcity of opportunities in their motherland. Most of the were employed in labor intensive work like construction of road, canals, bridges etc. But both, German and Irish immigrants faced huge opposition because they threatened the livelihood of Americans in low paying jobs. Most importantly, German and Irish immigrants showed that America remained the most attractive place to realize one’s dream of prosperous and happy

Educational Tort Article Example | Topics and Well Written Essays - 750 words

Educational Tort - Article Example Two types of torts are seen in the education: Intentional tort and Negligence tort. 'The central idea in tort law is that liability is based not so much on acting badly or wrongfully, but on committing a wrong' (www.seop.leeds.ac.uk, 2003). 'Intentional tort' is involved when offence is commited with the set intention of harming or instilling fear of reprisal or injury. Whereas, in 'Negligence tort', the injury caused is unexpected and not deliberate. The underlying concept of one's duty to safeguard the interests of others, is the vital ingredient of the law of tort. In the education system, the tort of law is increasingy being used by the students against the teachers. The most common is the assault that may not result in the physical injury. The teachers accused of assaulting students have become frequent. The verbal assault with the intention of instilling fear in the students and battery, when physica contact results in injury, have often been used by the students against the school authorities and teachers. ... Only when all the four points are proved the victim can be suitably compensated for damaged occurred. Education tort is important to maintain discipline within the different elements of the educational system including the teachers, administrators and students. We can, therefore, conclude that the law of torts has considerable impact on the public issues and plays a vital role in facilitating the welfare of the innocent victims. The huge implications of the law, has a long term deterrent effect on the behavioural pattern of the students and teachers alike and helps to instil a sense of responsibility towards each other. Reference Sansone v. Bechtel. (1980). [Accessed 22 October, 2008]. Theories of Tort Laws. Available from: [Accessed on 24 August,

The North American Berdache Coursework Example | Topics and Well Written Essays - 8500 words

The North American Berdache - Coursework Example Such people are also called two-spirited people. Way back in history the Spanish 'Conquistadors' came across two-spirited individuals in almost every town or village they visited in Central America. It was believed in the past that these individuals possessed numinous powers. History says that once in an encounter between a tribe and a group of women the soldiers of the tribe found that one of the women was a Berdache they ran frightened when the women started running after them. This proves the point that Berdaches contained significance in North America. However some writers criticize these individuals. Natives were and are usually thought of as warriors. Now when it is discovered about the Berdaches, writers criticize it as being a social failure. The reason being that such individuals believe that these people do not possess masculine qualities in them and hence are failure for their culture and their tribe. The writer Lang comments that in the past cross dressing that is male dressing like a female or a female dressing like a male did not mean they were necessarily Berdaches. He believed that dressing did not describe a person's society role, gender or even the partner he or she would choose for his or her life. A child's gender was decided by his or her tendency towards masculine or feminine activities. Clothing only mattered at the stage of Puberty to display a person's gender. Two-spirited people with a male body could go on a war, could even indulge in male activities such as sweat lodges. However they even had the capabilities of performing feminine tasks such as cooking and other domestic jobs. However now such feminine males are looked down by the society. People take them as a shame to the society and no longer look at their dual capabilities. These two spirited people or berdaches had sexual relations with any of the gender. How ever in the early days and even now Female bodied berdaches were involved in sexual relations with the female gender (now who are usually named as lesbians). A classic example of a relationship or a marriage was seen in the Lakota tribe which had male bodied berdaches, which would marry usually other males whose wife had passed away. They could take up the job of nursing the children of the family. Such people how ever did not gain much recognition, but some people believed that having sexual relations with two spirited people would get them magical powers. It was even believed that male-bodied berdaches having sex with another male will lead to the increasing of the masculinity of the other male. Another example brings in a totally new study of these two spirited

The basic guidelines that are specially relevant for aggressive equity Essay

The basic guidelines that are specially relevant for aggressive equity investors and conservative equity investors for investment decision - Essay Example In the need to understand these investment plans, this paper is aimed at evaluating the basic guidelines that are relevant for aggressive equity investors and conservative equity investors for the purpose of decision making. To begin with, aggressive equality investors actively play the game of equality in a vigorous way. Most of the time is spent in managing their portfolio than their consecutive counterparts. They are subjected to high risks; the calculations are in albeit manner aimed at earning big return rates (Chandra, 2009). For the aggressive equality investors, the following general guidelines are relevant in their investment plans for appropriate decision making. The first guideline is to focus on investments that one understands to play their own game. According to Prasanna Chandra (2009, p. 670), â€Å"an investor should always know about the specific company they are investing in, more than the current market does in order to successfully manage their investments.† Therefore, an investor must clearly make a decision on what to focus on. Therefore, decision making is the main key to successful investments. The choices of making decisions are diverse. They include deciding to concentrate on growth, value, multinational companies, small companies, public sector companies, high grade bonds, or low grade bonds. In choosing any of these strategies an investor should be mindful of the basic rules. These rules include being thorough, tough minded, being flexible in knowing the deal about any company one is buying into, and buying when the company is not understood by the existing market is a fundamental idea to keep in mind (Chandra, 2009) . As argued by Candara, one should play the game that one is best in, advocating that an investor should do things as an analyst who is best in doing something. For instance, if an investor can foretell the most important development in the

In 2015, why are women still earning less than men in Canada Annotated Bibliography

In 2015, why are women still earning less than men in Canada - Annotated Bibliography Example In other words, the author of the article suggest that to some degree womens professional choices predetermine the existence of the pay gap between men and women. In her article on the relationship between gender role attitudes and the pay gap between men and women, Nicole Fortin argues that the differences in wages results from discrimination against women. More specifically, the author has found that in OECD countries, it is believed that men should have more right to jobs compared to women and that the main gender role of a woman is a housewife. In addition to this, Fortin states that inner conflicts can explain the existence of the pay gap as well. In particular, she mentioned the so-called â€Å"mothers guilt†. Finally, based on the data from the World Value Survey, Fortin claims that the pay gap may be explained by the fact that women place a greater value on non-pecuniary aspects of job, which means that women may prefer jobs that offer better working environment rather than jobs that pay more. In her article, Julie Cool studies the issue of the pay gap between men and women from different points of view and suggests the possible causes of this problem. Before the analysis of causes, the author states this trend is a historical one because in Canada occupational segregation has been a normal practice for a significant period of time. As for the possible causes, Cool defines the three of them. The first one is the group of human capital factors, such as education and job experience. As the author claims, today, these factors do not account for the substantial portion of the existing pay gap. The second group of causes is demographic characteristics, such as marital status and the presence of children. The last of them is job characteristics, which include types of work, industries etc. In this regard, the author argues that it is the

Google Books Essay Example for Free

Google Books Essay The Google Books project has been a working progress ever since Google was created. The co-founders of Google, Sergey Brin and Larry Page had been working on a research project that was supported by the Stanford digital Library Technologies Project in 1996. Google intends to scan every book ever published and make all of the text searchable so that people can find the relevant information they need about book. They want to make books more accessible to the public and create an easy mechanism of sorting a book’s content and relevance to a subject. In 2002 a secret â€Å"books† project was launched and research was underway to identify the challenges that lay ahead of them. Over this period, Googlers discovered a quick and harm free way to scan books and began to meet with Libraries to begin the digitalization of books. In December 2004 Google announces the launch of the â€Å"Google Print† Library Project thanks to partnerships from Harvard, The University of Michigan, The New York Public Library, Oxford and Stanford. Together it is said that these libraries exceed 15million volumes. In 2005 Google Print is renamed Google Books which is a more fitting title as it better explains it’s use. With the launch of Google Books and its fast development many will argue of the advantages and disadvantages of the site. The whole project seems a little bit overly ambitious and it obviously has many flaws in its system. It is a timely process to scan hundreds of millions of books and the pivotal question here is â€Å"Are Google books doing it right? † Scanning books is an extremely time consuming process so once Google books have done it, it seems unlikely that the books will be rescanned. If some of the books are not scanned properly, important literature and information could become obscured or lost through the process of digitalization. Geoff Nunberg (2009) published an article Google books: A Metadata Train Wreck and pointed out many errors in the system. One example being that he googled the name of an author and restricted the search to the works published before their year of birth. It was found that 182 hits came up for Charles Dickens alone. The Chief Engineer for Google Books, Dan Clancy claimed that the incorrect dates where the fault of the libraries. However, when the matter was investigated further it shows that the first ten full read books published before 1812 and that mention Charles Dickens are correctly dated in the catalogues that they had come from. Although one can argue that the correct information is given on the title page, there have been some other inexcusable errors too. Google Books has classified many of its books incorrectly and once again Dan Clancy has claimed that both the libraries and publishers where to blame because the classifications were drawn from the BISAC codes that is given to booksellers. BISAC codes have only been around for about 20 years meaning that any book that was put in the wrong category before this time is a mistake of Google themselves. Google have decided to take on an extremely large project but it seems apparent that they are not doing it very well. They are quick to push the blame on others and the whole project is based more towards commercialism rather than to help make knowledge available to the world. Project Gutenberg was one of the first â€Å"digital† libraries and was created by volunteers. This project seems to focus more on the importance of literature and the quality of the books available are much greater than those on Google Books. The books are proof read by human beings and their workers are not paid which is a clear sign that they actually care about making books more available to people. Google Books produces books in a much larger mass but they should be aware that people will value â€Å"quality over quantity† most. Google quickly scan these books and it’s obvious that they rarely check them for errors. In Paul Duguid’s (2007) essay Inheritance and Loss? A Brief Survey of Google Books, He addresses the Google books system hands on by using Laurence Sterne’s The Life and Opinion of Tristram Shandy as an example. He choose the first link that appeared in the search engine and claims his results were as follows; The book he was examining did not start with the word â€Å"wish† meaning that the left hand side of the page that had the word â€Å"I† was missing. On page seventeen the left hand side of the page is not legible because the gutter of the book is blocking the first few letters and by page twenty-seven, Sterne quoted Hamlet’s phrase â€Å"alas, poor Yorick! † and inserted a black page of mourning. However the version that is on Google books has left out this page and is somewhat ignorant to the fact of how iconic it is to the astute reader. On further investigation of Duguids essay I clicked on the links that were given to the book and realised that it was no longer a link to the book. I then searched Tristram Shandy just had Duguid had done into Google Books. I clicked on the first link which is the same Harvard edition that Duguid was referencing and discovered that the first page had the word â€Å"I† before â€Å"wish† and page seventeen was now fully legible. Although some corrections had been made the black page that was to follow on from page twenty seven has still not been inserted. This is perhaps due to the fact that the people scanning these books are not scholars themselves. It is very easy to recognise a page with a missing word or one that is not fully legible but many would mistake a black page as an error in printing. Another flaw in the digitalization in books is the actual book itself. There is something so pleasant about flicking through a book and holding it in your hand while you read. The book in its own physically is magnificent, depending on how old it is it could have been passed on from generation to generation. The book itself is a story in its own right. Throughout its lifespan the book can acquire various annotations, signatures and other interesting characteristics. There has also been a lot of conflict with regard to the publishing industry and the digitalization of books. Google has offered to provide a search engine what they aspire to be every book ever published but for those which are copyrighted and cannot be viewed online, Google provides the option to purchase them online through sites such as Amazon or Barnes. In January 2007, Google held a conference on the future of the publishing industry. The conference quoted Charles Darwin and projected it on a screen: â€Å"It is not the strongest of the species that survive, nor is it the most intelligent, but the ones most responsive to change. † Toobin (2007) states in an article Google’s Moon Shot: â€Å"As Laurence Kirschbaum, a long time publishing executive who recently became a literary agent, told me at the conference, â€Å"Google is now the gatekeeper. They are reaching an audience that we as publishers and authors are not reaching. It makes perfect sense to use the specificity of a search engine as a tool for selling books. †Ã¢â‚¬  This statement has a lot of truth because since the growth of technology, the popularity of books has fallen drastically. People in the 21st century care more for mindless television shows and tacky magazines than a good well written piece. Reading books challenges the mind and fuels the imagination and by incorporating literature with technology it is a great attempt to try and revive such an excellent thing. Despite Google’s attempts, it looks as if they are not doing a good job. Many authors and publishers filed a lawsuit against Google Books claiming that Google has violated their copyrights by scanning the books, creating an electronic database and displaying short excerpts without their permission. The Authors Guild filed a lawsuit against Google Books alleging copyright infringement and after four years of discussion a settlement was finally reached in 2009. It was decided that Google was allowed to copy, display and sell millions of books that were out of print but still in copyright. However the agreement was reviewed several times and was summarily rejected in March 2011. This gave organizations a chance to voice their concern about the privacy policy for users of the system. Google claims that it has reviewed its privacy policy and that an advance policy has been created for Google Books but it seemed that the policy still left a large number of gaps and something appeared to be quite vague. On September 4th 2009 the Electronic Privacy Information Centre (EPIC) entered a motion to intervene in the Google settlement case to help the readers of Google Books regarding their privacy online. EPIC states that readers will be required to part with particular information that will be stored in a database to create detailed profiles of preferences of the reading with regard to their purchases and browsing. Marc Rotenberg appeared in court on February 18th 2010 and stated that: â€Å"A person at any library or any university in the United States that attempted to retrieve information from Google’s digital library would be uniquely tagged and tracked. There is simply no precedent for the creation of such power†. The court rejected the settlement but it did however state that Google should review it’s privacy policy to better protect its users. Google should not have the right to disclose any information to government or third parties and secure browsing should be a priority. Many people do not realise that these profiles are being created or that their privacy is being invaded. If this is supposed to be the library of the future, then it should be dealt with in the correct manner. People should be able to browse through books anonymously and have their own thoughts kept private. Google Books seem to have rushed the whole process of scanning such a vast amount of literature and by doing so they seemed to have forgotten about â€Å"quality over quantity. † It seems that the dream of creating a digital library will remain one for the foreseeable future due to the numerous flaws that the system has. Whilst Google Books are trying to correct their many errors it is apparent that the whole project was done quite carelessly and insufficiently. It is evident that Google Books motive leans more to the commercial side of things rather than making knowledge available to a wider audience. This is particularly clear with regards to their privacy policy. Google will suggest recommended pages and sites by analysing all of your browsing. The option to purchase a book that is not available online makes Google Books more of a digital bookstore rather than a digital library. The concept of Google Books is a great one and though it has some advantages, the disadvantages outweigh the good. Bibliography: †¢Duguid, Paul. Inheritance and Loss? A Brief Survey on Google Books. N. p. , Aug. 2007. Web. 12 Nov. 2012. . †¢Nunberg, Geoff. Language Log. A » Google Books: A Metadata Train Wreck. N. p. , 29 Aug. 2009. Web. 11 Nov. 2012. http://languagelog. ldc. upenn. edu/nll/? p=1701 †¢McSherry, Corynne. Good and Bad in Google Book Search Settlement Decision | Electronic Frontier Foundation. Good and Bad in Google Book Search Settlement Decision | Electronic Frontier Foundation. N. p. , 23 Mar. 2011. Web. 11 Nov. 2012. . †¢Rogers, T. Google Books: Good for Knowledge, Bad for Privacy. Information Privacy Law. N. p. , 28 Mar. 2011. Web. 12 Nov. 2012. http://www. brianrowe. org/infoprivacylaw/2011/03/28/google-books-good-for-knowledge-bad-for-privacy/ †¢Google Books. Google Books. N. p. , n. d. Web. 11 Nov. 2012. .

Agency Theory Accounting practices

Agency Theory Accounting practices Agency theory the contribution of agency theory to the development of current accounting practices Introduction The aim of this report is to develop a relationship between agency theory and the existing practices of accountancy. In the report, the problem of agent-principal will be described with the main consequences for business-related relationship. After identifying the problem, the accountancy practices will be linked to the issues addressed in model that will be explained. The report will look at a case study related to agency theories and its affects within accounting practices. Finally it will show the ways the accountancy practices meet the problems raised by the agent-principal relationships. The agency theory is a mixture of the relationships between principals and agents, it occurs when principal and the agents create a delegation (Donaldson, L. Davis, J.H., June 1991). Berle and Means 1932 stated that the Agency theory argues that in modern corporation, where share ownership is widely held, managerial actions depart from those required to maximise the shareholders return, this was also backed up by Pratt and Zeckhauser in 1985. According to Jensen and Meckling, 1976, In Agency theory terms, the owners are principals and the managers are agents and there is an Agency loss which is the extent to which returns to the residual claimants, the owners, fall below what they would be if the principals, and the owners, exercised direct control of the corporation (Donaldson, L. Davis, J.H., June 1991). The long term strategies for agency theory include the principle of company, business, franchise, etc providing incentives such as increasing commission, continuing to provide advertising, training and motivation to increase outlet operations. To argue this Carney and Gedajlovic stated that regarding of the exogenous factor, outlet managers have an incentive to shirk and misrepresent their abilities because the firm is hard to differentiate the managers performance behavior (Mathieu, 1997), While the short-term strategies include balancing supply with demand at the shortest turn around time. Agency theory tends to impact business decisions by focusing on establishing incentives as mentioned in the long-term strategies above. However, it may be very costly and may create moral hazards if top management tries to over maximise profits for themselves instead of for the employees. The cost to manage and monitor transactions can affect both the domestic and global financial managers due to the strategy becoming very expensive; nevertheless this strategy can have the negative impact upon the organisations survival. Conflicts of agency theory There is a conflict between principals and agents (shareholders and managers) that can potentially have a devastating business consequence. The cost of monitoring efforts, measuring results and opportunities lost can be substantial. Incentives and disincentives may not result in wanted outcome, when businesses should scan their environment constantly to seek opportunities to meet the interest of their own stakeholders. Agency theory is a small entity of financial economics that looks at conflicts of interest between people that have different interests for the same assets, this means that their will always be constant conflicts between: shareholders managers and shareholders bond holders. These are the reason why organisations make constant acquisitions that tend to be bad for the shareholder, why convertible bonds are preferably used while normal bonds are often sold with warrants and finally shows the importance of capital structures. According to Eisenhardt (1989a), agency theory is devoted to the solution of two problems that can arise from agency relationships. The first problem is goal related and arises when: i) there is a conflict between the goals of the principal and the agent; and ii) the verification of the agents behaviour is difficult or expensive to be verified by the principal. The second problem is risk-related. If the agent and the principal have different attitudes towards risk, it is likely that both will behave differently and in accordance to their risk preferences. Identifying conflicting positions between any two agents and explaining the governance mechanisms underlying these relationships (that limit the agents behaviour) is known as the Positivist agency theory (Eisenhardt, 1989a). A different position is found in the principal-agent research (as opposed to the positivistic agency theory) and relies on a more mathematical and abstract approach to the problem. Although in different perspectives, these two approaches can be complementary as it can be seen in the quotation below (Eisenhardt, 1998a: 60): â€Å"Rather, the important point is that the two streams are complementary: Positivistic theory identifies various contract alternatives, and the principal-agent theory indicates which contract is the most efficient under varying levels of outcome uncertainty, risk aversion, information, and other variables†¦Ã¢â‚¬  Problems of agency theory The major popularity of the application of the agency theory to the relationship between shareholders and the board if directors produced a vast amount of research devoted to this issue. In fact, this phenomenon relates to those cases in which ownership and management are represented by different individuals. Being each individual maximising its utility leads to the existence conflicting positions between the agent and the principal. This became the main focus of research, and justifies the need of such an agency theory. This problematic is in the basis of the role of agent theory in the accountancy practices. According to Bricker and Chandar (1998: 488-489): â€Å"Contracts between shareholders and managers are written in order to reduce agency cost, and thereby, the dead weight loss in firm value as a result of the separation of ownership from control. Accounting is considered to play an important role as an integral part of the contracts that define a firm. For example, lending arrangements between a firm and its creditors often contain several accounting based covenants. Accounting-based bonus plans are frequently a component of executive compensation plans. Accounting measures are commonly used in the performance evaluation of a firms cost and profit centers. Watts and Zimmerman argue [1986, p. 196]: if accounting is an important part of the firms contracting process and agency costs (and hence, firm value and/or managers compensation) vary with different contracts, accounting procedures have the potential to affect firm value and/or the managers compensation. This rationale has given rise to several hypotheses regarding the role of accounting information in market valuation of firms and managers use of accounting discretion.† The table presented below summarises some of the key issues associated with agency theory and relates them to several assumptions of different nature: Key idea Principal agent relationship should reflect efficient organisation of information and risk-bearing costs Unit of analysis Contract between principal and agent Human assumptions Self interest Bounded rationality Risk aversion Organisational assumptions Partial goal conflict among participants Efficiency as the effectiveness criterion Information asymmetry between principal and agent Information assumptions Information as purchasable commodity Contracting problems Agency (moral hazard and adverse selection) Risk sharing Problem domain Relationships in which the principal and agent have partially differing goals and risk preferences (e.g. compensation, regulation. Leadership, impression management, whistle-blowing, vertical integration, transfer pricing) Table 1: Agency theory overview Source: Eisenhardt (1989a) Development of agency theory Agency cost is a major problem with organisation and with constant fraud cases that are growing around the world their needed to be major development of the theory in accounting practices. A way of developing the theory is to minimise agency costs that can be accomplished through communications, sharing risks and benefits and seeking to balance the scorecards. The theory has developed by establishing performance standards, using cost effective processes, cost management tools and incentives have all helped the problem of managing agency problems. Accountancy provides information to base future decisions on historical performances. Providing accurate information about costs it is possible to predict the result of future production. This perspective is particularly important in the case of, for example, government contracts, in which an agent- principal relationship is also established. For example, Reichelstein (1992) draws upon the agency models to explain government contracts, showing how agency theory can be used to design incentive contracts, and demonstrating that the agency models have actually influenced managerial economics. A different perspective is that accounting provides an opportunity of control from the agent over the principal. In this respect, the insights about the relationship between the shareholders and management were particularly important in demonstrating the role of accountancy as key information provider. To that extent, it was suggested that accountancy reporting is a result of the separation of ownership from management phenomena. Hence, it can be argued that the reporting practice is a result of the agent problem and serves the control needed to verify the agents performance. Another perspective was the budget development based on historical accounts. Contracts usually include a price for production which has not taken place yet. The pricing of these contracts has to be based on historical costs that can only be provided by accountancy. To that extent, accountancy practice is not a result of the agent-principal problem but is originated to avoid uncertainty in principal-agent relationships. case realted study to agency theory Taking a prime example of Enron and its relationship with accounting practices clearly show the affects of agency theory within an accounting practice can affect organisations. The collapse of Enron was entirely related to the accounting practices adopted by the company. It has a number of these questionable, and in some cases straight out fraudulent, accounting practices that pertained to the most dramatic collapse of a major company in years. An analysis of some of these accounting practices brings to light the problems with the use of concepts such as mark-to-market accounting and the use of special purpose entitys (SPEs), the interrelation of agency theory suggests that the basic ideals surrounding agency theory applied to the Enron Case at some point in time, however the continuation of this principal deteriorated as time went on. The agency theory was clearly an issue in Enrons case because the managers of the firm were transferring wealth from the shareholders to themselves in the form of stock performance. Not only were there the Shareholders to Management agency problem there was also an employer to employee agency problem. With regard to the shareholder to management problem, the shareholders had placed a large amount of decision-making capability onto the management team and had not successfully monitored the agents behaviour. Given that the managers had all come to Enron with a strong reputation, it was expected that they â€Å"would act in the interest of the shareholders. [As such the shareholders] had monitored the managers performance very little† (Godfrey et al, 2008). As a shareholder, it would have been in the best interests to implement monitoring costs to â€Å"measure, observe and control† Schillings behaviour. Unfortunately this would not have been enough. The introduction of Fa stow, described as â€Å"a genius† in a number of sources, allowed for the performance of Enron to appear strong even in dire times. The use of SPEs and mark-to-market accounting allowed for the â€Å"reduction of monitoring costs by incurring bonding costs [in the form of quarterly statements]† that allowed Enron to perform better than it appeared. Another point that links is that the agency theory is the â€Å"the principal will remunerate the agent according to the principals expectations of how much the agents behaviour is likely to be contrary to the principals interests† (Godfrey et al, 2008). Given that managers of Enron were all major shareholders of the company the focus was on driving the share price up which was done by a process called â€Å"pump and dump; this process involved buying up the share price and then selling out† (Enron: The Smartest Guys in The Room) this allowed the directors to maintain high remuneration because they were achieving high share prices for the principals and also allowed them to gain from share price rises before selling out at the top. Finally, the principal-agent relationship that occurs between Skilling and Fastow (CEO of Enron) is that of an employee to employer. This relationship is important because it â€Å"emphasises the importance of the ability to monitor employees work efforts† (Akdere, Azvedo, 2004). Skilling and Ken Lay claim that they were unaware of what Fastow was doing with regards to the financial statements, however, Skilling and Lay were acting as the agents for the shareholders as well as acting as the principals for Fastow. Their involvement in such transactions as the one with LJM were â€Å"not only disclosed to the board at a meeting which took place in 1999, but the board approved of [Fastows] participation, following a recommendation to this effect from the then CEO and Chairman, Ken Lay† (Deakin, Konzelmann, 2004). From this we can clearly see that Lay, Skilling and Fastow were all part of the agency problem that occurred. conclusion This report has shown that several areas of accounting have been affected by the agency theory model. This theory has defiantly had implications in the financial accounting, management accounting and in corporate finance. Nevertheless, the strongest argument that relates to agency theory with accountancy mainly relies in the nature of both, the accounting and agency theory rely on the existence of contracts, these contracts rely at the core of the relationship between agents and the principal. Furthermore agency theorys core role is the risk associated with the relationship whereas accountancy reduces risk by providing information about the agents in action. Additionally reporting previous behaviours of the agent showing that the historical agent has kept the conditions of contract, may provide indications for the principal about the future behaviour of agents; increasing trust levels in the relationship and reducing the risk associated with relations. In conclusion, the current features (and practices) of accountancy meet the agency model problems proving the information to avoid opportunistic behaviours and ensuring that relational contracts are met. Referances Journals Davis, J.H., Schoorman, F.D., Donaldson, L. (1997), Toward a stewardship theory of management, Academy of Management Review, Vol. 22 No.1, pp.20-47. Berle, A. and G. Means, 1932, The Modern Corporation and private property (New York, Maacmillan) Jones, D. R. Butler, J.E, 1992, Managing internal corporation entrepreneurship: an agency theory perspective (Journal of Management) Bricker, R. and Chandar, N. (1998). On Applying Agency Theory in Historical Accounting Research. Business and Economic History 27(2): 486-99 Eisenhardt, K.M. (1989a). Agency Theory: An Assessment and Review, Academy of Management Review, 14 (1): 57-74. Eisenhardt, K.M. (1989b). Agency- and Institutional Theory Explanations: The Case of Retail Sales Compensation. Academy of Management Journal, 31 (3): 488-511. Kaplan, R.S. (1984). The Evolution of Management Accounting. The Accounting Review, LIX(3): 390-402. Reichelstein, S. (1992). Constructing Incentive Schemes for Government Contracts: An Application of Agency Theory. The Accounting Review, 67 (4): 712-731. References for Enron case study: Serwer, Andy. 2002, ‘Dirty Rotten Numbers: Enron has made us shine a light on the books of Americas public companies. Now, if your company carries even a hint of bad accounting, the stock will be savaged, Fortune. Vol 145, i4, p74+. Shleifer, Andrei. 2000, ‘Are Financial Markets Efficient Oxford Scholarship Online Economics and Finance. Pp 1- 5. Akdere, Mesut and Azevedo, Ross. 2004, ‘Organisational Development, Agency Theory, and efficient Contracts: A Research Agenda. Pp2-8. Deakin, Simon and Konzelmann, Suzanne. 2004, ‘Learning From Enron Corporate Governance. Vol 12, pp134-142. Haldeman, Robert G. 2006, ‘Fact, Fiction, and Fair Value Accounting at Enron The CPA Journal. Pp1-10. Thompson, Robert B. 2004, ‘Corporate Governance after Enron. HeinOnline. Pp99-117. Godfrey, Jayne. Hodgson, Allan. Holmes, Scott. Tarca, Ann. 2006. ‘Accounting Theory: Sixth edition. Wiley, Australia. ‘Enron: The Smartest Guys in The room 2005, DVD, Dendy Films. USA. ‘Encarta: Online. Copyright MSN Encarta, 2008, Accessed 15/05/08 from http://encarta.msn.com/media_701610605/the_fall_of_enron_stock.html