Legislation banning fraudulent financial documentation is intended to reduce
A) agency costs.
B) moral hazard problems.
C) asymmetric information.
D) all of the above.

Question

Quizplus · Accepted Answer

Legislation banning fraudulent financial documentation aims to reduce agency costs by ensuring that managers act in the best interests of shareholders, moral hazard problems by discouraging risky behavior without proper disclosure, and asymmetric information by making sure that all parties have access to accurate and relevant financial information.

Legislation Banning Fraudulent Financial Documentation Is Intended to Reduce