What type of business problems might game theory be helpful?

To reduce business risk. Risk analysis makes use of Game Theory in determining optimal price strategy, expected market shares, expected income and number of customers, while obtaining information about the company, the market, the competitors, and the technologies in use, among others.

What is the relationship between financial reporting and corporate governance?

The study found out that there is a significant relationship between corporate governance and financial reporting; Corporate governance ensures transparency and accountability of firms; and financial reports are used for decision-making.

What is the role of financial reporting in corporate governance?

Thus, one potential role for financial reporting is to provide outside directors and shareholders with relevant and reliable infor- mation to facilitate their mutual monitoring of management and, in the case of shareholders, their monitoring of directors.

Do corporate governance mechanisms increase financial reporting quality?

The study examines three aspects of corporate governance mechanisms namely; board of directors (size, composition, and diligence), audit committee (size, composition, and diligence) and audit quality. It has found that corporate governance mechanisms has no impact on contribution to the quality of financial reporting.

Does corporate governance affect the financial reporting quality of US firms?

Our research shows that good corporate governance practices have impact on the financial reporting quality, were Independence is considered one of the determinants of the success of financial reporting quality (T = 3.709, 008) and (R= 0.676), in addition to that; the independent variables are able to explain the …

What are the objectives of governmental financial reporting?

1, Objectives of Financial Reporting, are relevance, understandability, comparability, timeliness, consistency, and reliability. The three keys to effective communication are intended audiences, multiple levels of reporting, and forms of communication.

Why is transparency important in corporate governance?

Transparency is a critical component of corporate governance because it ensures that all of a company’s actions can be checked at any given time by an outside observer. This makes its processes and transactions verifiable, so if a question does come up about a step, the company can provide a clear answer.

How is game theory used in finance?

Game Theory is a method of modeling the interaction between two or more players in a situation with particular rules and expected outcomes. Game Theory helps with the fundamental analysis of industries and the interactions between two or more companies. …