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    Accounting does not have its own theories, instead borrowing theories from fields like economics and sociology such as agency theory, positive accounting theory, and grounded theory. While accounting lacks overarching theories of its own, it has developed useful hypotheses to explain phenomena like political costs, company size, debt covenants, and bonus plans.

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    Accounting does not have its own theories, instead borrowing theories from fields like economics and sociology such as agency theory, positive accounting theory, and grounded theory. While accounting lacks overarching theories of its own, it has developed useful hypotheses to explain phenomena like political costs, company size, debt covenants, and bonus plans.

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    7 views1 page

    Dear Solanke Abiola Account

    Uploaded by

    sanjuladasan
    Accounting does not have its own theories, instead borrowing theories from fields like economics and sociology such as agency theory, positive accounting theory, and grounded theory. While accounting lacks overarching theories of its own, it has developed useful hypotheses to explain phenomena like political costs, company size, debt covenants, and bonus plans.

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    Dear Solanke Abiola

    Accounting does not have its own theory. All mainstream accounting theories are theories borrowed
    from the fields of economics and sociology, and maybe from the sciences too.

    Such as:

    1. Agency theory (from finance, which is a branch of economics)

    2. Positive accounting theory (from the contracting literature in economics)

    3. Grounded theory

    4. Structuration theory (from sociology)

    5. Constructionist theory (from sociology)

    6. Institutional theory (from sociology)

    7. Behavioral accounting theory (from the behavioural economics literature)

    8. Chaos theory (from the field of mathematics and physics). Chaos theory is used to understand fraud in
    the field of forensic accounting.

    Accounting does not have its own encompassing theories. But, accounting has its own set of hypotheses
    which have been very useful, such as the political cost hypothesis, size hypothesis, debt covenant
    hypothesis, bonus plans hypothesis, income smoothing hypothesis, and many more.

    Hope this helps

    Regards

    Peterson

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