The theory and practice of Accounting and Finance make possible to estimate the value of the firm and, respectively, both provide and evaluate supplementary information that constitudes inputs for the expectations about the nature of organization. The strong interdependence between the researtch programs in both academic disciplines are show in their own analysis about the nature of assets, the governance of the firm and the determination of the profitability of the corporation. The institutional changes influence the research programs of both disciplines. The accounting value is based on historial data or on current prices, while the financial value of the firm is based on the discounted future cash flows of the firm as a project. The assimetry of information, the agency problems, the managerial power within the firm and the market power of the corporation are the main features of the visible hand as a mechanism of resource allocation within the firm and in the economy. The institucional framework, the social responsability of firms and the ethical values of managers are the main constrains to minimize the non desirable behaviour of the visible hand of the economy.
Accounting and Finance, accounting information and financial decisions. The visible hand of the firm Economic value of the firm
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