Opportunistic Perspective
The opportunistic perspective holds the view that managers, who are agents to the principal, act to their self-interests. They only adopt accounting policies that allow them to gain, in the view that the firm also gains. Different types of hypothesis exist such as political cost, bonus plan and debt hypothesis that show what motives make the managers choose one accounting method over another.
Read more about this topic: Positive Accounting
Famous quotes containing the word perspective:
“I know that you, ladies and gentlemen, have a philosophy, each and all of you, and that the most interesting and important thing about you is the way in which it determines the perspective in your several worlds.”
—William James (1842–1910)