Compare the roles of "Pat" and "Nate". Then, according to Pat's theory, the importance of financial disclosure to managers and shareholders is discussed in detail.

1. Find information about PAT and NAT. You can't compare them until you know what they are.

2. The principal-agent relationship mentioned here means that in a company, managers actually have more information than shareholders. What problems will this bring (on the other hand, explain the importance of financial disclosure).

You still have to think about the beginning and the end, hehe.

P.S. PAT is the name of a theory, which may also represent a bunch of theories, all of which are based on maximizing the company's interests or making the company's performance look excellent.

Supplement: Financial disclosure refers to the annual financial report, which is also the annual report.