Discussion of 'Contracting Theory and Accounting'
Posted: 4 Dec 2001
Professor Lambert provides a very useful synthesis of the major issues in managerial accounting and the insights that agency theory has provided on those issues. In this discussion, I highlight some of the limitations of these models in examining accounting measurement questions. Lambert calls for additional work in multiperiod contracting models, and I discuss some of the modeling choices that must be made in such work. Finally, I present some thoughts on the relation between contract models and empirical research.
Keywords: Contracting; Agency theory; Managerial accounting
JEL Classification: M41, M46, L14, D82
Suggested Citation: Suggested Citation