What Is The Relationship Between Depreciation Value Using Straight Line Method And Agency Cost Case Study
Their annual report and accounts for the year ended 2011 was considered as our analysis is set to cover this period.
The researcher has restricted this study to just 100 Companies for the purpose of having a manageable size of sample.
1.6 SIGNIFICANCE OF THE STUDY
This study is relevant to the following interest group: 1) Existing and potential investors as well as business oriented individuals will find the research findings useful for investment decisions. 2) The various companies in Nigeria most especially the quoted ones will find the research findings report useful in decision …show more content…
1.7 LIMITATIONS OF THE STUDY
According to Ibrahim (2012), limitations are factors beyond our control which tends to impede the accomplishment of the objectives. The smallness of the sample size is a major limitation of this study. Very few companies are sampled randomly, having carried out all the analysis, a conclusion is then drawn on all companies on the floor of the Nigerian Stock Exchange. The conclusion drawn may not be true of some companies because the sample selected may not have represented them adequately.
Another limitation was difficulties/impossibility of generating data. Secondary data was used for this study (I.e financial statement of sampled companies) and this data are required for a period of one year. Getting these data were impossible/difficult in some cases, however, the analysis was carried out using the available data.
DEFINITION OF TERMS
Agency cost; the sum of the monitoring and bonding costs together with the residual loss.
Accounting choice; this is any decision whose primary purpose is to influence( either in substance or form) the output of an accounting