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The three basic hypotheses as outlined by Watts and Zimmermann (1978) are: the bonus plan hypothesis; the debt / equity hypothesis; and the political cost
The three basic hypotheses as outlined by Watts and Zimmermann (1978) are:
the bonus plan hypothesis;
the debt / equity hypothesis; and
the political cost hypothesis.
Explain each of these hypotheses, and using examples, critically discuss the relevance of each today.
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