Contemporary Accounting and Management Accounting Issues: Agency Theory

Running head: ACCOUNTING ISSUES AND AGENCY THEORY
MGT723 Research Project
Semester 2 2017
Assessment Task 1: Research Proposal
Student Name: XXX
Your assigned research topic*: Contemporary Accounting and Management Accounting Issues:
Agency Theory
Draft Research Question: What is the role of agency theory and related factors in maintaining
effective carbon disclosure in organizations?
Title: XXX
Submission Date: XXX

1ACCOUNTING ISSUES AND AGENCY THEORY
Table of Contents
Literature Review................................................................................................................2
Motivation........................................................................................................................2
Practical Motivation.....................................................................................................2
Theoretical Motivation................................................................................................2
Conflicting Previous Results.......................................................................................3
Agency Theory............................................................................................................4
Key Theoretical Constructs.........................................................................................4
Relationship between Slack and Information Asymmetry..........................................4
Conceptual Framework Model............................................................................................5
Hypothesis...........................................................................................................................6
Proxy Measures for Theoretical Constructs........................................................................7
Research Method.................................................................................................................8
Data Collection................................................................................................................8
Sampling and Size of Sample..........................................................................................8
Method of Data Analysis.................................................................................................8
References..........................................................................................................................10
Appendices........................................................................................................................11

2ACCOUNTING ISSUES AND AGENCY THEORY

3ACCOUNTING ISSUES AND AGENCY THEORY
Literature Review
Motivation
Practical Motivation
Coad, Jack and Kholeif (2015) stated that the vital sources of carbon emission are there in
organizations and for this reason they might contribute in decreasing the emission level. With
emergence of Corporate Social Responsibility concept within nation’s regulatory framework, the
organizations are becoming aware. Moreover, they are also considering carbon emission
disclosure as this is related with the financial performance. Hoque (2018) indicated that the
major concern of the environment is increasing carbon emission level by organizations for the
reason that it greatly impacts global warning along with increasing harmful environmental
consequences. Carbon emissions also impacts business conducts like investment, competition
along with investor and stakeholder activities. This also greatly puts huge impact on the goods
and raw materials supply along with government co-operation risks and decreased share prices.
In contrast, Christensen, Nikolaev and Wittenberg‐Moerman (2016) revealed that there is
different connection between carbon emissions performance disclosure, financial performance
and company’s growth. Voluntary disclosure by organizations indicates their management
efficiency of emissions. This leads to development of shareholders interest in consideration to
business investment within the organization relied on its potential. For this reason, carbon
emission disclosure is a vital concern for all international organizations.
Theoretical Motivation
This research is intended to explain the significance of carbon emission disclosure for the
organizations in consideration to increasing financial performance through employing agency