For this discussion, your focus will be to think through what asymmetric information, moral hazard, and adverse selection have to do with corporate hiring staff accountants. As we saw in the week 7 discussion in contracts there maybe something called the agency problem. In employment contracts we have a principal, the organization hiring, and the agent, the potential employee. When hired, the employee is expected to carry out/act on behalf, of the agent's best interest. I can be very hard and costly for principal to ensure that the agent is conducting the principal business in the best interest of the principal.

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Asymmetric Information Moral Hazard and Adverse Selection in Corporate Hiring of Staff Accountants An Agency Problem Introduction Hiring staff accountants involves a complex dynamic between the employ... View the full answer