Management Accounting Issues and Stakeholder Theory

Running head: MANAGEMENT ACCOUNTING ISSUES AND STAKEHOLDER THEORY
MGT723 Research Project
Assessment Task 1: Research Proposal
Student Name: XXX
Your assigned research topic*: Management Accounting Issues: Stakeholder Theory
Draft Research Question: How Stakeholder theory along with its factors can facilitate in
addressing carbon disclosure concerns in companies?
Title: XXX
Submission Date: XXX

1MANAGEMENT ACCOUNTING ISSUES AND AGENCY THEORY
Table of Contents
Literature Review................................................................................................................2
Motivation........................................................................................................................2
Practical Motivation.....................................................................................................2
Theoretical Motivation................................................................................................2
Previous Results...........................................................................................................2
Stakeholder Theory......................................................................................................3
Key Theoretical Concepts............................................................................................3
Relationship between Information Asymmetry and Slack..........................................4
Conceptual Framework Model............................................................................................4
Hypothesis...........................................................................................................................5
Proxy Measures...................................................................................................................5
Research Method.................................................................................................................6
References............................................................................................................................8
Appendices..........................................................................................................................9

2MANAGEMENT ACCOUNTING ISSUES AND AGENCY THEORY
Literature Review
Motivation
Practical Motivation
Samaha, Khlif and Hussainey (2015) explained that carbon emissions are deemed to
affect business activities includingcompetition, investment as wee as stakeholder and investment
activities. These researchers also evidenced that there is positive relationship between
performance disclosure of carbon emissions, organizationalgrowth along with its financial
performance. Global warmingand climate changes are increasing risk of carbon emissions of
organizations. This is the reason for which disclosure of carbon emission is important to be
considered by organizations in order to deal with climate changes risks (Shehata 2014).
Theoretical Motivation
The effect of disclosure associated with carbon emission has drastic effect on the
financial performance of the organisations. Hence, the organisations are needed to concentrate on
minimising the environmental issues providing economic advantages. The carbon disclosures
that the organisations undertake need to be rightful and voluntary, as the figures need to be real.
Such information would enable the shareholders to ascertain the actual position and performance
of the organisation. Thus, the research would take into account the impact of carbon disclosure
on the overall business performance of the organisations.
Previous Results
In the words of Khlif, Ahmed and Souissi (2017), carbon emission disclosures draw the
attention of the shareholders in order to invest in the organisation and hence, the latter could
obtain financial benefits. From the administration perspective, it is necessary for a firm to adhere

3MANAGEMENT ACCOUNTING ISSUES AND AGENCY THEORY
to the CSR policy so that it could form positive association with the governmental and regulatory
bodies. Such association improves the brand image of the organisation in the eyes of its
associated stakeholders. Moreover, the association between the suppliers and the customers helps
in adoption of environment-friendly measures.
Stakeholder Theory
As laid out by Habbash, Hussaineyand Awad (2016), Stakeholder theory could be
explained in the form of a supposition depicting the relationship between agents and principals in
business organisations. This is concerned with resolving those issues, which could take place in
Stakeholder relationships because of unadjusted goals and diversified levels of risk aversion. The
most inherent Stakeholder relationship could be identified between the shareholders and business
executives. The shareholders are adjudged as the principal, while the business executives are
considered as the agents.
Key Theoretical Concepts
Martínez‐Ferrero, Garcia‐Sanchez and Cuadrado‐Ballesteros (2015)evidenced that in the
recent years a drastic development in the sustainability accounting literature has obtained
increased attention. These researchers explained that carbon performance and impacts can be
measured relied on per employee emissions, each employee reductions and operations or cost
centre emissions. From the administrative viewpoint, it is also evidenced that there is a
positiveassociation between the environment and company’s sustainable performance. Samaha,
Khlif and Hussainey (2015) stated that the accountants that are involved in defining the
indicators, designing methods along with gathering sustainability information are observed to
have a methodological role. This facilitates in supporting and promoting sustainability
accounting within the company.