Purpose The purpose of this paper is to adopt an agency theory approach to investigate the integration of environmental issues into management control systems (MCS). Prior environmental accounting research has focussed on increasing organisations’ environmental accountability by...

We consider a model of active asset management in which mutual fund managers exert unobservable effort to earn excess returns. Investors allocate capital to both actively managed funds and passively managed products (e.g., index funds or ETFs). In the model's equilibrium, investors are...