Question 1 (Total marks 33) a. Explain what agency theory suggests regarding how to structure executive compensation. (6 marks) b. Review the study by Yusuf et al. (2018). What arguments do the authors provide to suggest that agency theory is not applicable for determining executive compensation in developing countries? (8 marks) c. Using the Hofstede Insights website: https://www.hofstedeinsights.com/product/compare-countries/ compare the cultural scores for Australia and Pakistan. Explain what the differences in the scores between Australia and Pakistan indicate, regarding: i. uncertainty avoidance and ii. long-term orientation (8 marks) d. How might your discussion in c. above be used to further explain why agency theory may not be useful to guide in the determination of executive compensation in Pakistan (build on what you have written in c., do not use the arguments of Yusuf et al. (2018) in answering this question)? (6 marks) 2 e. Review the study by Yusuf et al. (2018). Why is a qualitative approach appropriate for their research objectives? (5 marks)