Corporate Governance - Accounting Theory
Subtopic: Independent directors
Report title: Independent directors and ‘skin in the game’.
Your task: (Article Critique) Identify and apply any of the theories covered in Accounting Theory that you believe would assist a reader to understand the issues being discussed in the three articles below.
The 3 articles
1. (Academic article) MANDATED DIVORCE: COMPANY BOARDS, ‘INDEPENDENCE’ AND PERFORMANCE:POLICY • Vol. 32 No. 2 • Winter 2016, pp.3-9, < https://www.cis.org.au/app/uploads/2016/06/32-2-swan-peter.pdf>.
2. (Magazine) ‘Skin in the game,’ Company Directors Magazine. May 2016, pp.37-9 < http://www.companydirectors.com.au/director-resource-centre/publications/company-director-magazine/2016-back-editions/may/skin-in-the-game >.
3. (Newspaper) Tue Jun 28, 2016 Tesla investor group wants more independent board, cites Musk ties. , http://www.reuters.com/article/us-solarcity-m-a-tesla-idUSKCN0ZE2ZL
Research in order to find secondary sources on matters where a relevance to theoretical issue of accounting theory can be demonstrated
1. Identify the theoretical issue of accounting theory that relates with the most salience (relevance) to the contents of your selected articles.
2. Provide examples of agreements, disagreements or coverage disparities between the contents of the articles and the contents of the chosen accounting theory topic Readings and textbook. To do this, you need to compare the articles' content with the content of the various resources used in accounting theory and in that comparison, you should identify agreements (similarities), disagreements (differences) and disparities (where one source mentions something and the other does not).
3. Critique the articles. To do this you should at least:
4. Assess the significance of agreements, disagreements or disparities identified in the previous section.
5. Assess whether you are in a position to form an opinion on the accuracy of the content of the articles (for example, are sources of information revealed in the articles? Or is the author in a position to be trusted in respect to this topic?)
6. Question if the articles’ coverage of the issues has been balanced and comprehensive enough to present useful information (more than a single perspective identified and presented)
7. Evaluate the worth of the articles to a decision maker who must consider similar issues in their respective roles (e.g. an investor seeking to evaluate investment opportunities; a manager wanting to make a resource allocation decision; a citizen wishing to exercise her civic rights; etc).
8. Reference List (Harvard Referencing)with in text reference