The Value of Accounting Q Why does accounting exist in every organization? Q I explain this question in another way what kind of unique value does accounting possess n The value must be fundamental and the society could not go without Q Another way to explain: Darwinism D Natural selection and the fittest survive Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
6 The Value of Accounting ⧫ Why does accounting exist in every organization? ⧫ I explain this question in another way: what kind of unique value does accounting possess? The value must be fundamental and the society could not go without; ⧫ Another way to explain: Darwinism; Natural selection and the fittest survive;
The nature of firm Q Although every organization needs accounting, we just talk about enterprise accounting for simplicity What is the nature of firm? Q We discuss about human nature first; Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 7
7 The Nature of Firm ⧫Although every organization needs accounting, we just talk about enterprise accounting for simplicity; ⧫What is the nature of firm? ⧫We discuss about human nature first;
The nature of man ◆ Ethic man; 中 国 口 Human Nature: Virtue vs.Eⅶf D Confucis vs. Hsun tzu ◆ Economic man 古代思想家一孔子 a=2 中国邮 政 n There is no ethics concept in Economists'dictionary; oIt is not from the benevolence of the butcher, i the brewer, or the baker that expect our dinner, but from their regards their own interest. (Adam Smith); Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 8
8 The Nature of Man ⧫Ethic Man; Human Nature: Virtue vs. Evil; Confucis vs. Hsun Tzu ⧫Economic Man; There is no ethics concept in Economists’ dictionary; →It is not from the benevolence of the butcher, the brewer, or the baker that expect our dinner, but from their regards their own interest. (Adam Smith);
The nature of man Q We need a compound analytical tool; u Maslow and the hierarchy of Needs: the most common tool: Q Michael Jensen and william Meckling 囗 REMM Self-Actualization → Resourceful Evaluator, Esteem → Maximizer, Love Model Physiological Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 9
9 The Nature of Man ⧫ We need a compound analytical tool; Maslow and the Hierarchy of Needs: the most common tool; ⧫ Michael Jensen and William Meckling REMM →Resourceful, →Evaluator, →Maximizer, →Model
The nature of firm ◆ Classical theories; D a device to capture transaction costs D A nexus of contracts; n Agency theory; Economic darwinism. 59 ◆ REMM perspective: D A coalition of economic men Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 10
10 The Nature of Firm ⧫Classical theories; A device to capture transaction costs; A nexus of contracts; Agency theory; Economic Darwinism; ,,,, ⧫REMM perspective: A coalition of economic men;