The model of managerial incentives used in Positive Accounting Theory sees debt contracts as important in accounting choices in firms. The paper argues that agency theory and costly contracting theory imply a much wider role for debt contracts as corporate governance mechanisms for controlling...

Countries in transition now represent a significant sector of the international political economy. One of the challenges that they face in moving towards market-based systems and institutions is that of transforming the structure of business enterprises into forms more compatible with capitalist...