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":null,"pages":null},"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":null,"pages":null},"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":null,"pages":null},"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":null,"pages":null},"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":null,"pages":null},"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":null,"pages":null},"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}
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":null,"pages":null},"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}
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":null,"pages":null},"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}
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":null,"pages":null},"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":null,"pages":null},"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}