In this paper, we provide a comprehensive summary of persuasion theories from a variety of fields (e.g., psychology, marketing, and economics) and describe how these theories can enhance our understanding of how investors process and respond to financial communications (e.g., firm disclosures and analyst research reports). We draw on dual-process theories of persuasion to describe the circumstances under which an investor's response to a financial disclosure is likely to represent the investor's intuition or reflect more deliberate and analytical processing of financial information. Examples from the financial accounting literature are used to illustrate how dual-process thinking and reasoning operate within a financial reporting domain. In addition, we offer broad suggestions on how financial accounting researchers can use the psychology of persuasion to understand and form empirical predictions about investor processing of and reaction to managers' and analysts' financial disclosures.
{"title":"Investors' Processing of Financial Communications: A Persuasion Perspective","authors":"E. Hamilton, Jennifer Winchel","doi":"10.2308/BRIA-52211","DOIUrl":"https://doi.org/10.2308/BRIA-52211","url":null,"abstract":"\u0000 In this paper, we provide a comprehensive summary of persuasion theories from a variety of fields (e.g., psychology, marketing, and economics) and describe how these theories can enhance our understanding of how investors process and respond to financial communications (e.g., firm disclosures and analyst research reports). We draw on dual-process theories of persuasion to describe the circumstances under which an investor's response to a financial disclosure is likely to represent the investor's intuition or reflect more deliberate and analytical processing of financial information. Examples from the financial accounting literature are used to illustrate how dual-process thinking and reasoning operate within a financial reporting domain. In addition, we offer broad suggestions on how financial accounting researchers can use the psychology of persuasion to understand and form empirical predictions about investor processing of and reaction to managers' and analysts' financial disclosures.","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":"44387575","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 the effect of staff auditors' workplace mindfulness on premature sign-off—a serious audit quality-threatening behavior that can go undetected through the review process. We also examine whether supervisor coaching is an effective means to engender workplace mindfulness. Using a sample of 115 auditors, we predict and find that (1) auditors who are coached by supervisors to appreciate the importance of their work to external financial statement users are more likely to be mindful in their work setting, and (2) greater workplace mindfulness about financial statement user considerations is associated with a reduced likelihood of auditor sign-off on an audit procedure not completed. We also find that supervisor coaching has an indirect effect on premature sign-off through workplace mindfulness. The results underscore the importance of workplace mindfulness in reducing audit quality-threatening behavior and indicate that supervisor coaching may be an effective technique in eliciting mindfulness among staff-level auditors. Data Availability: Contact the authors.
{"title":"Workplace Mindfulness and its Effect on Staff Auditors' Audit Quality-Threatening Behavior","authors":"David N. Herda, Nathan H. Cannon, R. Young","doi":"10.2308/BRIA-52215","DOIUrl":"https://doi.org/10.2308/BRIA-52215","url":null,"abstract":"\u0000 This study investigates the effect of staff auditors' workplace mindfulness on premature sign-off—a serious audit quality-threatening behavior that can go undetected through the review process. We also examine whether supervisor coaching is an effective means to engender workplace mindfulness. Using a sample of 115 auditors, we predict and find that (1) auditors who are coached by supervisors to appreciate the importance of their work to external financial statement users are more likely to be mindful in their work setting, and (2) greater workplace mindfulness about financial statement user considerations is associated with a reduced likelihood of auditor sign-off on an audit procedure not completed. We also find that supervisor coaching has an indirect effect on premature sign-off through workplace mindfulness. The results underscore the importance of workplace mindfulness in reducing audit quality-threatening behavior and indicate that supervisor coaching may be an effective technique in eliciting mindfulness among staff-level auditors.\u0000 Data Availability: Contact the authors.","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":"48910285","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}
Lindsay M. Andiola, D. Downey, Brian C. Spilker, Tracy J. Noga
Public accounting firms regularly rely on offshore professionals to assist with client work. However, differences in interpersonal dynamics between offshore staff members and the supervisors they report to may yield positive and/or negative work outcomes. We examine how feedback source (offshore or onshore supervisor) and feedback sign (negative or positive) interact to affect offshore staff members' satisfaction with feedback. This is an important issue because subordinate satisfaction with performance feedback is a key determinant of future performance and turnover intentions. We find that offshore staff members are less satisfied with negative feedback from an offshore (local Indian) supervisor, a member of their in-group, than an onshore (remote U.S.) supervisor, a member of their out-group. However, their satisfaction with positive feedback does not significantly differ between feedback sources. Further analysis reveals that greater satisfaction is associated with increases in the effort the staff member plans to put forth in the future. JEL Classifications: M40; M41; M54; D91. Data Availability: Please contact the authors.
{"title":"An Examination of the Interactive Effect of Feedback Source and Sign in the Offshoring Environment: A Social Identity Perspective","authors":"Lindsay M. Andiola, D. Downey, Brian C. Spilker, Tracy J. Noga","doi":"10.2308/BRIA-52182","DOIUrl":"https://doi.org/10.2308/BRIA-52182","url":null,"abstract":"\u0000 Public accounting firms regularly rely on offshore professionals to assist with client work. However, differences in interpersonal dynamics between offshore staff members and the supervisors they report to may yield positive and/or negative work outcomes. We examine how feedback source (offshore or onshore supervisor) and feedback sign (negative or positive) interact to affect offshore staff members' satisfaction with feedback. This is an important issue because subordinate satisfaction with performance feedback is a key determinant of future performance and turnover intentions. We find that offshore staff members are less satisfied with negative feedback from an offshore (local Indian) supervisor, a member of their in-group, than an onshore (remote U.S.) supervisor, a member of their out-group. However, their satisfaction with positive feedback does not significantly differ between feedback sources. Further analysis reveals that greater satisfaction is associated with increases in the effort the staff member plans to put forth in the future.\u0000 JEL Classifications: M40; M41; M54; D91.\u0000 Data Availability: Please contact the authors.","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":"44278385","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 We examine 468 experimental auditing research papers that were published in ten leading accounting and auditing journals from 1991–2015 to address three key issues. First, we consider the ...
{"title":"Twenty-Five-Year Overview of Experimental Auditing Research: Trends and Links to Audit Quality","authors":"R. Simnett, K. Trotman","doi":"10.2308/BRIA-52138","DOIUrl":"https://doi.org/10.2308/BRIA-52138","url":null,"abstract":"ABSTRACT We examine 468 experimental auditing research papers that were published in ten leading accounting and auditing journals from 1991–2015 to address three key issues. First, we consider the ...","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":"30 1","pages":"55-76"},"PeriodicalIF":2.1,"publicationDate":"2018-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46553500","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}
Steve Buchheit, Marcus M. Doxey, Troy Pollard, Shane R. Stinson
ABSTRACT: Multiple social science researchers claim that online data collection, mainly via Amazon's Mechanical Turk (MTurk), has revolutionized the behavioral sciences (Gureckis et al. 2016; Litman, Robinson, and Abberbock 2017). While MTurk-based research has grown exponentially in recent years (Chandler and Shapiro 2016), reasonable concerns have been raised about online research participants' ability to proxy for traditional research participants (Chandler, Mueller, and Paolacci 2014). This paper reviews recent MTurk research and provides further guidance for recruiting samples of MTurk participants from populations of interest to behavioral accounting researchers. First, we provide guidance on the logistics of using MTurk and discuss the potential benefits offered by TurkPrime, a third-party service provider. Second, we discuss ways to overcome challenges related to targeted participant recruiting in an online environment. Finally, we offer suggestions for disclosures that authors may provide about t...
摘要：多位社会科学研究人员声称，主要通过亚马逊的机械土耳其人（MTurk）进行的在线数据收集已经彻底改变了行为科学（Gureckis et al.2016；Litman、Robinson和Abberbock，2017）。尽管近年来基于MTurk的研究呈指数级增长（Chandler和Shapiro，2016年），但人们对在线研究参与者代理传统研究参与者的能力提出了合理的担忧（Chandlers、Mueller和Paolacci，2014年）。本文回顾了最近的MTurk研究，并为从行为会计研究人员感兴趣的人群中招募MTurk参与者样本提供了进一步的指导。首先，我们为使用MTurk的物流提供指导，并讨论第三方服务提供商TurkPrime提供的潜在好处。其次，我们讨论了如何克服与在线环境中有针对性的参与者招募相关的挑战。最后，我们提出了作者可能提供的有关披露的建议。。。
{"title":"A Technical Guide to Using Amazon's Mechanical Turk in Behavioral Accounting Research","authors":"Steve Buchheit, Marcus M. Doxey, Troy Pollard, Shane R. Stinson","doi":"10.2308/BRIA-51977","DOIUrl":"https://doi.org/10.2308/BRIA-51977","url":null,"abstract":"ABSTRACT: Multiple social science researchers claim that online data collection, mainly via Amazon's Mechanical Turk (MTurk), has revolutionized the behavioral sciences (Gureckis et al. 2016; Litman, Robinson, and Abberbock 2017). While MTurk-based research has grown exponentially in recent years (Chandler and Shapiro 2016), reasonable concerns have been raised about online research participants' ability to proxy for traditional research participants (Chandler, Mueller, and Paolacci 2014). This paper reviews recent MTurk research and provides further guidance for recruiting samples of MTurk participants from populations of interest to behavioral accounting researchers. First, we provide guidance on the logistics of using MTurk and discuss the potential benefits offered by TurkPrime, a third-party service provider. Second, we discuss ways to overcome challenges related to targeted participant recruiting in an online environment. Finally, we offer suggestions for disclosures that authors may provide about t...","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":"30 1","pages":"111-122"},"PeriodicalIF":2.1,"publicationDate":"2018-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49356936","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}
Auditors frequently gather information by conducting client inquiries. During these inquiries, auditors should be alert to verbal and nonverbal cues emanating from members of client personnel that might be indicative of deception. Extant literature on deception suggests that the general practice of using a single auditor to conduct client inquiries may limit the ability of auditors to detect deception. Using Master’s-level accounting students as a proxy for entry-level auditors, I examine how the use of one or two auditors affects the behavioral cues (nervousness and discussion) of client personnel that may indicate deception during inquiries. In addition, I study whether two auditors are more likely than a single auditor to detect deception during inquiries. Results suggest that the number of auditors taking part in an inquiry significantly impacts deceptive clients’ behavioral cues, as well as how those cues affect auditors’ perceptions of client honesty and subsequent write-down recommendations. Specifically, results of a mediation analysis suggest that two auditors, but not single auditors, are able to detect deception through the use of behavioral cues. This paper contributes to prior studies on client inquiries and interpersonal deception theory.
{"title":"The Effect of Multiple Auditors on Deception Detection in a Client Inquiry Setting","authors":"Kip Holderness","doi":"10.2139/SSRN.2600975","DOIUrl":"https://doi.org/10.2139/SSRN.2600975","url":null,"abstract":"Auditors frequently gather information by conducting client inquiries. During these inquiries, auditors should be alert to verbal and nonverbal cues emanating from members of client personnel that might be indicative of deception. Extant literature on deception suggests that the general practice of using a single auditor to conduct client inquiries may limit the ability of auditors to detect deception. Using Master’s-level accounting students as a proxy for entry-level auditors, I examine how the use of one or two auditors affects the behavioral cues (nervousness and discussion) of client personnel that may indicate deception during inquiries. In addition, I study whether two auditors are more likely than a single auditor to detect deception during inquiries. Results suggest that the number of auditors taking part in an inquiry significantly impacts deceptive clients’ behavioral cues, as well as how those cues affect auditors’ perceptions of client honesty and subsequent write-down recommendations. Specifically, results of a mediation analysis suggest that two auditors, but not single auditors, are able to detect deception through the use of behavioral cues. This paper contributes to prior studies on client inquiries and interpersonal deception theory.","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":"30 1","pages":"39-58"},"PeriodicalIF":2.1,"publicationDate":"2018-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.2139/SSRN.2600975","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42465716","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}
T. Lambert, Benjamin L. Luippold, Chad M. Stefaniak
ABSTRACT: We explore potential effects of a new Public Accounting Oversight Board (PCAOB) rule that requires disclosure of the external audit partner's identity. By manipulating the presence or absence of audit partner disclosure (APD), we examine how investors might react to APD and the mechanism behind such reaction. We find that prospective investors are less likely to invest in a peer firm linked to a restating firm via APD than when the link is only through an audit firm and industry. This effect is mediated by investors' restatement likelihood assessments. Our study makes several contributions. First, we add empirical evidence to the emerging debate on the impact of APD to U.S. markets. Second, we experimentally demonstrate investor information contagion and provide support for one mechanism (speculated by archival-based literature) through which it works. Finally, we provide evidence that investors attribute more blame to partners for a negative outcome due to APD. JEL Classifications: M42; M48.
{"title":"Audit Partner Disclosure: An Experimental Exploration of Accounting Information Contagion","authors":"T. Lambert, Benjamin L. Luippold, Chad M. Stefaniak","doi":"10.2308/BRIA-51853","DOIUrl":"https://doi.org/10.2308/BRIA-51853","url":null,"abstract":"ABSTRACT: We explore potential effects of a new Public Accounting Oversight Board (PCAOB) rule that requires disclosure of the external audit partner's identity. By manipulating the presence or absence of audit partner disclosure (APD), we examine how investors might react to APD and the mechanism behind such reaction. We find that prospective investors are less likely to invest in a peer firm linked to a restating firm via APD than when the link is only through an audit firm and industry. This effect is mediated by investors' restatement likelihood assessments. Our study makes several contributions. First, we add empirical evidence to the emerging debate on the impact of APD to U.S. markets. Second, we experimentally demonstrate investor information contagion and provide support for one mechanism (speculated by archival-based literature) through which it works. Finally, we provide evidence that investors attribute more blame to partners for a negative outcome due to APD. JEL Classifications: M42; M48.","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":"30 1","pages":"27-38"},"PeriodicalIF":2.1,"publicationDate":"2018-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46425317","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: Auditors must ensure that their audit plans budget sufficient time for key audit steps. Research has shown that insufficient audit time budgets can be detrimental to audit quality. We exa...
{"title":"Budgeting Audit Time: Effects of Audit Step Frame and Verifiability","authors":"Eldar M. Maksymov, M. Nelson, William R. Kinney","doi":"10.2308/BRIA-51923","DOIUrl":"https://doi.org/10.2308/BRIA-51923","url":null,"abstract":"ABSTRACT: Auditors must ensure that their audit plans budget sufficient time for key audit steps. Research has shown that insufficient audit time budgets can be detrimental to audit quality. We exa...","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":"30 1","pages":"59-73"},"PeriodicalIF":2.1,"publicationDate":"2018-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.2308/BRIA-51923","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49143193","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: Auditors frequently gather information by conducting client inquiries. During these inquiries, auditors should be alert to verbal and nonverbal cues emanating from members of client personnel that might be indicative of deception. Extant literature on deception suggests that the general practice of using a single auditor to conduct client inquiries may limit the ability of auditors to detect deception. Using Master's-level accounting students as a proxy for entry-level auditors, I examine how the use of one or two auditors affects the behavioral cues (nervousness and discussion) of client personnel that may indicate deception during inquiries, and whether two auditors are more likely to act upon deceptive cues than a single auditor (as measured by subsequent audit judgments). Results of a path analysis suggest that deceptive behavioral cues are more apparent in the presence of two auditors, and that two auditors are more likely than a single auditor to successfully incorporate behavioral cues in...
{"title":"The Effect of Multiple Auditors on Deception Detection in a Client Inquiry Setting","authors":"D. KipHolderness","doi":"10.2308/BRIA-51909","DOIUrl":"https://doi.org/10.2308/BRIA-51909","url":null,"abstract":"ABSTRACT: Auditors frequently gather information by conducting client inquiries. During these inquiries, auditors should be alert to verbal and nonverbal cues emanating from members of client personnel that might be indicative of deception. Extant literature on deception suggests that the general practice of using a single auditor to conduct client inquiries may limit the ability of auditors to detect deception. Using Master's-level accounting students as a proxy for entry-level auditors, I examine how the use of one or two auditors affects the behavioral cues (nervousness and discussion) of client personnel that may indicate deception during inquiries, and whether two auditors are more likely to act upon deceptive cues than a single auditor (as measured by subsequent audit judgments). Results of a path analysis suggest that deceptive behavioral cues are more apparent in the presence of two auditors, and that two auditors are more likely than a single auditor to successfully incorporate behavioral cues in...","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":" ","pages":"39-58"},"PeriodicalIF":2.1,"publicationDate":"2018-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45797001","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: The Affordable Care Act (ACA) employs personal income tax credits and surcharges to enforce its mandate for health insurance coverage. This initiative depends largely on the use of tax in...
{"title":"Tax Incentives and Target Demographics: Are Tax Incentives Effective in the Health Insurance Market?","authors":"M. Morrow, Shane R. Stinson, Marcus M. Doxey","doi":"10.2308/BRIA-51929","DOIUrl":"https://doi.org/10.2308/BRIA-51929","url":null,"abstract":"ABSTRACT: The Affordable Care Act (ACA) employs personal income tax credits and surcharges to enforce its mandate for health insurance coverage. This initiative depends largely on the use of tax in...","PeriodicalId":46356,"journal":{"name":"Behavioral Research in Accounting","volume":"30 1","pages":"75-98"},"PeriodicalIF":2.1,"publicationDate":"2018-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43298371","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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