Joseph F. Brazel, Christine Gimbar, Eldar M. Maksymov, T. Schaefer
In this research note, we replicate Brazel, Jackson, Schaefer, and Stewart's (2016) study of how auditors evaluate skeptical behavior. Like the original study, we find that evaluators reward audit staff who exercise appropriate levels of skepticism and identify a misstatement (positive outcome). However, when no misstatement is identified (negative outcome), evaluators penalize staff who exercise appropriate levels of skepticism. One factor causing this outcome effect may be that exercising skepticism typically causes budget overages due to additional testing. Hence, we examine whether formally attributing the budget overage to skeptical judgments and actions in the audit budget file reduces outcome effects. However, while replicating the initial effect across three separate studies, we have been unable to reduce this effect. Thus, it is clear that the outcome effect in this context is very robust. Data Availability: Contact the authors.
{"title":"The Outcome Effect and Professional Skepticism: A Replication and a Failed Attempt at Mitigation","authors":"Joseph F. Brazel, Christine Gimbar, Eldar M. Maksymov, T. Schaefer","doi":"10.2308/BRIA-52306","DOIUrl":"https://doi.org/10.2308/BRIA-52306","url":null,"abstract":"\u0000 In this research note, we replicate Brazel, Jackson, Schaefer, and Stewart's (2016) study of how auditors evaluate skeptical behavior. Like the original study, we find that evaluators reward audit staff who exercise appropriate levels of skepticism and identify a misstatement (positive outcome). However, when no misstatement is identified (negative outcome), evaluators penalize staff who exercise appropriate levels of skepticism. One factor causing this outcome effect may be that exercising skepticism typically causes budget overages due to additional testing. Hence, we examine whether formally attributing the budget overage to skeptical judgments and actions in the audit budget file reduces outcome effects. However, while replicating the initial effect across three separate studies, we have been unable to reduce this effect. Thus, it is clear that the outcome effect in this context is very robust.\u0000 Data Availability: Contact the authors.","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2018-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48459185","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this experiment is to examine how outcome information affects individual ethical attitudes and intentions to behave. In the present study, a scenario manager employs revenue manipulation by prematurely forcing a product through distribution channels. This investigation employs a 1 × 3 between-subjects and randomized experimental design where the scenario manager's unethical behavior is associated with three behavior-based organizational outcomes: favorable, moderately unfavorable, and unfavorable. We model individual ethical reasoning using the expanded Theory of Reasoned Action. Our findings suggest that the theory provides an appropriate and parsimonious fit for modeling individual ethical reasoning in the channel stuffing context. Specifically, we also find that as organizational outcomes of the scenario manager's coercive behavior shift from unfavorable to favorable, participants judge unethical behavior less harshly, a concerning finding for regulators and policymakers. These findings have significant implications for new revenue recognition standards, such as IFRS 15 and ASC 606. Data Availability: Data available upon request. Please contact the authors.
{"title":"How Outcome Information Affects Ethical Attitudes and Intentions to Behave","authors":"Gary M. Fleischman, S. Valentine","doi":"10.2308/BRIA-52273","DOIUrl":"https://doi.org/10.2308/BRIA-52273","url":null,"abstract":"\u0000 The purpose of this experiment is to examine how outcome information affects individual ethical attitudes and intentions to behave. In the present study, a scenario manager employs revenue manipulation by prematurely forcing a product through distribution channels. This investigation employs a 1 × 3 between-subjects and randomized experimental design where the scenario manager's unethical behavior is associated with three behavior-based organizational outcomes: favorable, moderately unfavorable, and unfavorable. We model individual ethical reasoning using the expanded Theory of Reasoned Action. Our findings suggest that the theory provides an appropriate and parsimonious fit for modeling individual ethical reasoning in the channel stuffing context. Specifically, we also find that as organizational outcomes of the scenario manager's coercive behavior shift from unfavorable to favorable, participants judge unethical behavior less harshly, a concerning finding for regulators and policymakers. These findings have significant implications for new revenue recognition standards, such as IFRS 15 and ASC 606.\u0000 Data Availability: Data available upon request. Please contact the authors.","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2018-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46145427","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Greenhouse gas (GHG) assurance is increasingly used by companies as a means to increase stakeholder confidence in the quality of externally reported carbon emissions. The multidisciplinary nature of these engagements means that assurance is performed primarily by multidisciplinary teams. Prior research suggests the effectiveness of such teams could be affected by team composition and team processes. We employ a retrospective field study to examine the impact of educational diversity and team member elaboration on multidisciplinary GHG assurance team effectiveness. Results show that team processes such as sufficiency of elaboration on different team member perspectives significantly increases the perceived effectiveness of the teams. While educational diversity is not found to directly improve perceived team effectiveness, it is found to have a positive effect through increasing perceived sufficiency of elaboration. These findings have important implications for standard setters and audit firms undertaking GHG assurance engagements.
{"title":"The Effect of Diversity and the Mediating Role of Elaboration on Multidisciplinary Greenhouse Gas Assurance Team Effectiveness","authors":"Erboon Ekasingh, R. Simnett, Wendy Green","doi":"10.2308/BRIA-52285","DOIUrl":"https://doi.org/10.2308/BRIA-52285","url":null,"abstract":"\u0000 Greenhouse gas (GHG) assurance is increasingly used by companies as a means to increase stakeholder confidence in the quality of externally reported carbon emissions. The multidisciplinary nature of these engagements means that assurance is performed primarily by multidisciplinary teams. Prior research suggests the effectiveness of such teams could be affected by team composition and team processes. We employ a retrospective field study to examine the impact of educational diversity and team member elaboration on multidisciplinary GHG assurance team effectiveness. Results show that team processes such as sufficiency of elaboration on different team member perspectives significantly increases the perceived effectiveness of the teams. While educational diversity is not found to directly improve perceived team effectiveness, it is found to have a positive effect through increasing perceived sufficiency of elaboration. These findings have important implications for standard setters and audit firms undertaking GHG assurance engagements.","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2018-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41875698","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
ABSTRACT How market participants respond to corporate disclosure forms an important cornerstone in many areas of accounting and finance research. This article synthesizes behavioral research on how...
{"title":"CSR Disclosure and Investor Behavior: A Proposed Framework and Research Agenda","authors":"K. Gödker, Lasse Mertins","doi":"10.2308/BRIA-51976","DOIUrl":"https://doi.org/10.2308/BRIA-51976","url":null,"abstract":"ABSTRACT How market participants respond to corporate disclosure forms an important cornerstone in many areas of accounting and finance research. This article synthesizes behavioral research on how...","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":"30 1","pages":"37-53"},"PeriodicalIF":2.1,"publicationDate":"2018-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47221127","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Recent advances in technology have increased the accessibility and ease in using eye-tracking as a research tool. These advances have the potential to benefit behavioral accounting researchers' understanding of the cognitive processes underlying individuals' judgments, decisions, and behaviors. However, despite its potential and wide use in other disciplines, few behavioral accounting studies use eye-tracking. The purpose of this paper is to familiarize accounting researchers with eye-tracking, including its advantages and limitations as a research tool. We start by providing an overview of eye-tracking and discussing essential terms and useful metrics, as well as the psychological constructs they proxy. We then summarize eye-tracking research across research domains, review accounting studies that use eye-tracking, and identify future research directions across accounting topics. Finally, we provide an instructional resource to guide those researchers interested in using eye-tracking, including important considerations at each stage of the study. JEL Classifications: M41; C91.
{"title":"If Eyes are the Window to Our Soul, What Role does Eye-Tracking Play in Accounting Research?","authors":"E. Lynch, Lindsay M. Andiola","doi":"10.2308/BRIA-52283","DOIUrl":"https://doi.org/10.2308/BRIA-52283","url":null,"abstract":"\u0000 Recent advances in technology have increased the accessibility and ease in using eye-tracking as a research tool. These advances have the potential to benefit behavioral accounting researchers' understanding of the cognitive processes underlying individuals' judgments, decisions, and behaviors. However, despite its potential and wide use in other disciplines, few behavioral accounting studies use eye-tracking. The purpose of this paper is to familiarize accounting researchers with eye-tracking, including its advantages and limitations as a research tool. We start by providing an overview of eye-tracking and discussing essential terms and useful metrics, as well as the psychological constructs they proxy. We then summarize eye-tracking research across research domains, review accounting studies that use eye-tracking, and identify future research directions across accounting topics. Finally, we provide an instructional resource to guide those researchers interested in using eye-tracking, including important considerations at each stage of the study.\u0000 JEL Classifications: M41; C91.","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2018-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41837623","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-09-01DOI: 10.2308/1558-8009-30.2.127
{"title":"Behavioral Research in Accounting Editorial Policy","authors":"","doi":"10.2308/1558-8009-30.2.127","DOIUrl":"https://doi.org/10.2308/1558-8009-30.2.127","url":null,"abstract":"","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2018-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44374955","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study investigates whether assured disclosures of management's remediation of material weaknesses in internal controls affect positively unsophisticated investor perceptions of disclosure credibility and the likelihood of their investing in a firm. The results indicate that investors perceive assured material weakness remediation disclosures, whether the audit source is external or internal to the firm, to be more credible than unassured disclosures. Specifically, external assurance is seen to be more credible than the assurance provided by internal auditors but that is seen as more credible than no assurance. However, investment likelihood remains the same regardless of assurance source. Furthermore, the results indicate that investor disclosure credibility perceptions and investing likelihood are lower for internally assured pervasive material weakness remediation disclosures than internally assured account-specific remediations and all externally assured remediation disclosures. Finally, mediation results suggest that both internal and external auditor assurance increases investing likelihood indirectly through increased disclosure credibility.
{"title":"An Examination of Nonprofessional Investor Perceptions of Internal and External Auditor Assurance","authors":"Travis P. Holt","doi":"10.2308/BRIA-52276","DOIUrl":"https://doi.org/10.2308/BRIA-52276","url":null,"abstract":"\u0000 This study investigates whether assured disclosures of management's remediation of material weaknesses in internal controls affect positively unsophisticated investor perceptions of disclosure credibility and the likelihood of their investing in a firm. The results indicate that investors perceive assured material weakness remediation disclosures, whether the audit source is external or internal to the firm, to be more credible than unassured disclosures. Specifically, external assurance is seen to be more credible than the assurance provided by internal auditors but that is seen as more credible than no assurance. However, investment likelihood remains the same regardless of assurance source. Furthermore, the results indicate that investor disclosure credibility perceptions and investing likelihood are lower for internally assured pervasive material weakness remediation disclosures than internally assured account-specific remediations and all externally assured remediation disclosures. Finally, mediation results suggest that both internal and external auditor assurance increases investing likelihood indirectly through increased disclosure credibility.","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2018-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47462662","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-09-01DOI: 10.2308/1558-8009-30.2.i
S. Feldman
{"title":"Covers and Frontmatter","authors":"S. Feldman","doi":"10.2308/1558-8009-30.2.i","DOIUrl":"https://doi.org/10.2308/1558-8009-30.2.i","url":null,"abstract":"","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2018-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46473073","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Isaac Agyemang, Darlene D. Bay, G. Cook, Parunchana Pacharn
The ability to attract donor funding is important to many nonprofit organizations' success in achieving their goals. Prior literature indicates that the emotional response of potential donors to the mission of these organizations as well as the assessment of the financial information provided impacts donation decisions. However, prior literature has examined either the effect of the emotional response or financial information, but not both. Using an experiment, our paper fills this gap in the literature by investigating both factors in the same study. Furthermore, we investigate the potential moderating effect of emotional intelligence. The results indicate that, under some circumstances, the emotional response of the potential donor and the donor's emotional intelligence impact both the decision to donate and the size of the donation. However, the financial information, as compiled by the Better Business Bureau, a business rating agency that also rates charities, impacts only the size of the donation.
吸引捐助者资金的能力对许多非营利组织成功实现其目标至关重要。先前的文献表明，潜在捐赠者对这些组织使命的情感反应以及对所提供财务信息的评估会影响捐赠决策。然而，先前的文献已经研究了情绪反应或财务信息的影响，但不是两者都有。通过实验，我们的论文通过在同一研究中调查这两个因素来填补文献中的这一空白。此外，我们还研究了情绪智力的潜在调节作用。研究结果表明，在某些情况下，潜在捐赠者的情绪反应和捐赠者的情商会影响捐赠决定和捐赠规模。然而，由商业评级机构Better Business Bureau汇编的财务信息只影响捐款的规模。
{"title":"Individual Donor Support for Nonprofits: The Roles of Financial and Emotional Information","authors":"Isaac Agyemang, Darlene D. Bay, G. Cook, Parunchana Pacharn","doi":"10.2308/BRIA-52233","DOIUrl":"https://doi.org/10.2308/BRIA-52233","url":null,"abstract":"\u0000 The ability to attract donor funding is important to many nonprofit organizations' success in achieving their goals. Prior literature indicates that the emotional response of potential donors to the mission of these organizations as well as the assessment of the financial information provided impacts donation decisions. However, prior literature has examined either the effect of the emotional response or financial information, but not both. Using an experiment, our paper fills this gap in the literature by investigating both factors in the same study. Furthermore, we investigate the potential moderating effect of emotional intelligence. The results indicate that, under some circumstances, the emotional response of the potential donor and the donor's emotional intelligence impact both the decision to donate and the size of the donation. However, the financial information, as compiled by the Better Business Bureau, a business rating agency that also rates charities, impacts only the size of the donation.","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":"1 1","pages":""},"PeriodicalIF":2.1,"publicationDate":"2018-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41369629","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A focus on novel, confirmatory, and statistically significant results by journals that publish experimental audit research may result in substantial bias in the literature. We explore one type of bias known as p-hacking: a practice where researchers, whether knowingly or unknowingly, adjust their collection, analysis, and reporting of data and results, until nonsignificant results become significant. Examining experimental audit literature published in eight accounting and audit journals within the last three decades, we find an overabundance of p-values at or just below the conventional thresholds for statistical significance. The finding of too many “just significant” results is an indication that some of the results published in the experimental audit literature are potentially a consequence of p-hacking. We discuss potential remedies that, if adopted, may to some extent alleviate concerns regarding p-hacking and the publication of false positive results. JEL Classifications: M40.
{"title":"p-Hacking in Experimental Audit Research","authors":"Mohammad Jahanzeb Khan, Per Christen Tronnes","doi":"10.2308/BRIA-52183","DOIUrl":"https://doi.org/10.2308/BRIA-52183","url":null,"abstract":"A focus on novel, confirmatory, and statistically significant results by journals that publish experimental audit research may result in substantial bias in the literature. We explore one type of bias known as p-hacking: a practice where researchers, whether knowingly or unknowingly, adjust their collection, analysis, and reporting of data and results, until nonsignificant results become significant. Examining experimental audit literature published in eight accounting and audit journals within the last three decades, we find an overabundance of p-values at or just below the conventional thresholds for statistical significance. The finding of too many “just significant” results is an indication that some of the results published in the experimental audit literature are potentially a consequence of p-hacking. We discuss potential remedies that, if adopted, may to some extent alleviate concerns regarding p-hacking and the publication of false positive results.\u0000 JEL Classifications: M40.","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":" ","pages":""},"PeriodicalIF":2.1,"publicationDate":"2018-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44049606","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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