limitation of agency theory is that it does not address contextual factors. Which of the following is not a limitation of agency theory? *

Agency theory provides unlimited insight into how boards work and how process mechanisms such as accountability can be invoked to enable board effectiveness.

Agency theory also assumes that having structural monitoring mechanisms such as non-executive or non-managerial boards in place is sufficient to ensure alignment between principal and agent interests without considering the complexity of operationalising such mechanisms.

Agency theory neglects considering whether agents view themselves as being accountable to others.