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Lunar International College
Masters Of Business Administration
Business Ethics, Corporate Social
Responsibility, and
Governance
TITLE:-AGENCY THEORY
PREPARED BY:- TAZEBACHEW BIRKU MBA-0073/14
march 2023 G.C
Addis Ababa, Ethiopia
AGENCY THEORY
Definition
The main purpose is that maximizes shareholder value and minimizing risk.
Financial reporting
The quality of financial reporting can have a significant impact on a company's
ability to attract capital, and long-term success.
Corporate Governance And Its Impact On
Financial Reporting
Independence Board:
ensuring that the financial statements are accurate and reliable.
Effective board
Ensuring accurate financial reporting:
investors and stakeholders rely on financial reports to make informed decisions.
Managing risk:
a positive impact on financial reporting.
Effective risk management
prevent financial losses and ensure that the company's financial statements
accurately reflect its financial position.
Maintaining ethical standards:
promote ethical behavior and prevent conflicts of interest.
unethical , fraud/trade off and other forms of financial misconduct.
CORPORATE GOVERNANCE AND ITS
IMPACT ON FINANCIAL REPORTING
Investor relations:
providing timely and accurate information to investors and stakeholders,
Effective investor relations build trust and confidence in the company.
Employee morale:
employees feel the company is committed to ethics they are engaged and motivated.
a positive impact on performance
Compliance with regulations:
ensure that companies comply (run) with relevant laws
and regulations.
provide a true and fair view of the company's financial
position.
CORPORATE GOVERNANCE AND ITS
IMPACT ON FINANCIAL REPORTING
Internal controls:
establish and maintain effective internal controls to ensure that financial reporting is
accurate and reliable.
This includes processes for
 ensuring that financial information is accurate and complete,
 identifying and mitigating financial reporting risks, and
 ensuring that financial reporting is compliant with legal and regulatory requirements.
Auditor independence:
ensure that they are independent and objective.
Thus, practices play a critical role in ensuring accurate and reliable financial reporting.
Promoting transparency:
build trust among stakeholders.
disclosing relevant financial information in a timely and accurate manner, and
providing clear explanations of financial results and accounting policies.
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assignment 2 ptt.pptx

  • 1. Lunar International College Masters Of Business Administration Business Ethics, Corporate Social Responsibility, and Governance TITLE:-AGENCY THEORY PREPARED BY:- TAZEBACHEW BIRKU MBA-0073/14 march 2023 G.C Addis Ababa, Ethiopia
  • 2. AGENCY THEORY Definition The main purpose is that maximizes shareholder value and minimizing risk. Financial reporting The quality of financial reporting can have a significant impact on a company's ability to attract capital, and long-term success.
  • 3. Corporate Governance And Its Impact On Financial Reporting Independence Board: ensuring that the financial statements are accurate and reliable. Effective board Ensuring accurate financial reporting: investors and stakeholders rely on financial reports to make informed decisions. Managing risk: a positive impact on financial reporting. Effective risk management prevent financial losses and ensure that the company's financial statements accurately reflect its financial position. Maintaining ethical standards: promote ethical behavior and prevent conflicts of interest. unethical , fraud/trade off and other forms of financial misconduct.
  • 4. CORPORATE GOVERNANCE AND ITS IMPACT ON FINANCIAL REPORTING Investor relations: providing timely and accurate information to investors and stakeholders, Effective investor relations build trust and confidence in the company. Employee morale: employees feel the company is committed to ethics they are engaged and motivated. a positive impact on performance Compliance with regulations: ensure that companies comply (run) with relevant laws and regulations. provide a true and fair view of the company's financial position.
  • 5. CORPORATE GOVERNANCE AND ITS IMPACT ON FINANCIAL REPORTING Internal controls: establish and maintain effective internal controls to ensure that financial reporting is accurate and reliable. This includes processes for  ensuring that financial information is accurate and complete,  identifying and mitigating financial reporting risks, and  ensuring that financial reporting is compliant with legal and regulatory requirements. Auditor independence: ensure that they are independent and objective. Thus, practices play a critical role in ensuring accurate and reliable financial reporting. Promoting transparency: build trust among stakeholders. disclosing relevant financial information in a timely and accurate manner, and providing clear explanations of financial results and accounting policies.