Collison (1998:7) states that “ Attention to the interests of shareholders above all other groups is implicit in much of what is taught to accounting and finance students. The very construction of a...

Introduction:
This study is concerned about the impact of accounting and financial study taught to students
with respect to the shareholders interest. Adam Smith states that, “interest of the shareholders
above other group is implicit in much of what is taught to the accounting and finance students.
The very constructive profit and loss account are a continual and usually unstated reminder that
the interest of only one group of shareholders should be maximized. In fact, it may be
exceedingly difficult to accounting and financial students to even consider of another way in
which affairs could be ordered”. However, the real fact is that the profit maximization not only
ased towards maximizing the interest of only one group of shareholders. There are other
considerable factors too such as stakeholders group, revenue growth, depreciation &
amortization, capital spending on proposed projects, competition, economic and political
conditions etc. The literature draws attention to socializing impacts of accounting and financial
education. It might be expose accounting students and accountants to financial statements in
which the recompense of non -debt capital was recorded as cost and students and accountants
will consider that increase in recompense will increase the costs to customers rather than as an
indicator of business’s success.
Discussion:
The concept of corporate governance:
The concept of corporate governance protects the interest of shareholders by using best
practice. Shareholders have been as a principal in the corporate from the business organization.
Shareholders are in remarkably strong argument regarding their interest in the organization.
Shareholders are the risk bearing as they contribute the equity capital in the corporation. They
have authority to allocate resources to the end uses, right to electing the directors, guide and
control the executive management and they are in the last picking order of distribution of profits,
in the case of winding –up they will get the distribution amount after meeting of all other claims
of the Corporation. Hence, they qualify the best interest or residual claimants in the respective
organization. The contract entered into by stakeholder, or persons other than the shareholders is
an explicit contract that gives the right of fixed payments. The shareholders interest is implicit,
and the company should run toward the maximizing shareholders wealth. The examples of
companies that created propaganda are: Xeron, Computer Associates, Enron, Kmart, Qwest
Communications etc.
The Stakeholders Theory:
There is no definitive agreement regarding the stakeholder’s theory. The early
stakeholder’s theory has done in the form of a negative critique towards shareholders interest...