1,721,025 research outputs found
Do investors differentiate the dimensions of an analyst's credibility? An examination of bold valence, reputation and accuracy on investors’ competence and trustworthiness judgements
No full textIdentifying the determinants of analysts’ credibility (composed of competence and trustworthiness) is an important issue because it affects both analysts’ career prospects and investors’ investment choice making. In a bold forecast setting, I experimentally examine whether and how an analyst characteristic, reputation, and two forecast features, forecast accuracy and bold valence (i.e., whether the bold forecast is positively bold or negatively bold relative to the consensus forecast), jointly influence the two dimensions of analyst credibility. I find that, in the absence of accuracy information, investors trust analysts more when they make a negatively (as opposed to positively) bold forecast, with the effect evident only for lower reputation analysts. Upon revelation of accuracy information, lower (as compared to higher) reputation analysts who issue a negatively bold forecast gain more competence increases when the forecast is accurate, and do not suffer greater competence losses when the forecast is inaccurate. For the trustworthiness dimension, although lower reputation analysts do not experience greater trustworthiness increases than higher reputation analysts for a negatively bold and accurate forecast, their post-accuracy trustworthiness is advanced to a level comparable to that of a higher reputation analyst. Overall, my study contributes to the literature by introducing a new forecast attribute, bold valence. In addition, I am the first to show that the two dimensions of analyst credibility, competence and trustworthiness, are differentially influenced by different analyst and forecast attributes. My study also has implications for analysts by identifying ways they can build credibility with investors.Doctor of Philosophy (NBS
Effects of warning of impending time pressure on adaptation and performance
No full textHigh time pressure is a common issue encountered by professionals such as auditors, lawyers and engineers. This is a well-recognised problem faced by them as they often have to meet tight deadlines in the course of their work, resulting in substandard
quality of performance. The current study examined i) the effects of time pressure on performance, and ii) warning of impending high time pressure on adaptation and performance.
From our experiment, results showed that subjects under low time pressure performed better than those under high time pressure. This is in line with the findings of past studies that showed that high time pressure has a detrimental effect on performance.
Our experiment also examined the effects of warning of impending high time pressure on subjects. Interestingly, the results indicated that by giving adequate warning of impending high time pressure, performance improved significantly. Thus, subjects facing the same high time pressure but given the warning must have adapted in some ways to perform better.ACCOUNTANC
Judgement in the Singapore statements of accounting standard
No full textOver the past 2 decades, several prestigious commissions such as the
Treadway and Cohen Commissions and other bodies have referred to the
relationship between accounting standards and judgement. Despite such
references, the judgement and accounting standards relationship has apparently not
attracted much attention from researchers and standard setters. In Singapore itself,
there is a lack of empirical studies done in this area. The purpose of this report,
therefore, is to draw attention to this relationship and document the extent of
judgement required by the Statements of Accounting Standards (SAS).
A content analysis was done on a sample of 18 Statements of Accounting
Standards whereby judgemental areas were recorded and classified according to a
predetermined taxonomy. Results revealed that judgements required by the
standards were very much prevalent, especially in those standards that dealt with
the accounting of specific items and events.
The implications of the results will be discussed along with
recommendations made in view of improving the quality of guidance provided by
the standards in exercising judgement.ACCOUNTANC
The joint effect of animated graphs and motion verbs on investor judgments
No full textWithin the context of accounting disclosures, firms often have significant control over the manner in which data is presented and the language used to present these disclosures. I examine two features of the disclosure setting. I predict that the use of animated graphs or static graphs in accounting disclosures can influence investor investment judgments, but the effect of this depends on the type of language used in the disclosure. I experimentally test my prediction using an investor day transcript in which the graphs used are either animated or static, and the language used either contains motion verbs or does not. I further add two additional control conditions in which I keep the vividness of the language low in order to examine the effects of animated or static graphs. As predicted, I find that animated graphs result in more favorable investment judgments than when static graphs are used, but only when used in conjunction with motion verbs. I run a second experiment to examine the cognitive processes that underpin the findings in Experiment One, but the results of Experiment Two suggest that the cognitive processes leading to the findings occur unconsciously. I identify a new data visualization feature in the accounting disclosure setting, the animation of graphs, and how it influences investor judgments.Doctor of Philosoph
Going Beyond Counting First Authors in Author Co-citation Analysis
Get PDFThe present study examines one of the fundamental aspects of author co-citation analysis (ACA) - the way co-citation
counts are defined. Co-citation counting provides the data on which all subsequent statistical analyses and mappings
are based, and we compare ACA results based on two different types of co-citation counting - the traditional type that
only counts the first one among a cited work's authors on the one hand and a non-traditional type that takes into
account the first 5 authors of a cited work on the other hand. Results indicate that the picture produced through this non-traditional author co-citation counting contains more coherent author groups and is therefore considerably clearer. However, this picture represents fewer specialties in the research field being studied than that produced through the traditional first-author co-citation counting when the same number of top-ranked authors is selected and analyzed. Reasons for these effects are discussed
Materiality definition, reporting regime, and sustainability disclosure
No full textThe trend of companies issuing sustainability reports is on the rise. However, the materiality of sustainability information continues to be a topic of much debate. I experimentally examine how different materiality definitions (financial materiality vs. impact materiality vs. double materiality) for sustainability matters and the reporting regime for sustainability reports (voluntary reporting regime vs. mandatory reporting regime) jointly affect corporate managers’ tendency to disclose more details about material sustainability matters. I find that managers are more likely to disclose more details about material sustainability matters under the voluntary reporting regime when financial materiality is provided than when impact materiality or double materiality is provided. This effect, however, does not hold in the mandatory reporting regime. The effect is driven by the perceived fit of the materiality definition under the corresponding reporting regime. The findings contribute to the literature on sustainability materiality and offer insights for regulators and practitioners.Doctor of Philosoph
Algorithm-human partnership in audit data analytics and aggressiveness of management accounting estimates
No full textAudit firms increasingly incorporate Audit Data Analytics (ADA). However, it is unclear how client managers react to the use of ADA. I experimentally examine how the presence (vs. absence) of an IT specialist and adjustment timing jointly affect the client manager’s acceptance of auditors’ proposed audit adjustments during the auditor-client negotiation process. I manipulate (1) whether the auditor performs ADA independently or the auditor performs ADA alongside a specialist, and (2) whether the auditor adjusts the ADA algorithm’s input parameters or output results. I find that when the ADA algorithm’s input (output) is adjusted, client managers accept more (less) proposed audit adjustments in the presence of a specialist. The interaction effect is driven by the client manager’s perceived persuasiveness of the ADA result and perceived auditor expertise. My findings contribute to audit literature on the use of ADA, auditor-client negotiation, and the “algorithm-human partnership,” and have implications for audit firms and corporate managers.Doctor of Philosoph
Effects of warning of impending time pressure on adaptation and performance
No full textHigh time pressure is a common issue encountered by professionals such as auditors, lawyers and engineers. This is a well-recognised problem faced by them as they often have to meet tight deadlines in the course of their work, resulting in substandard
quality of performance. The current study examined i) the effects of time pressure on performance, and ii) warning of impending high time pressure on adaptation and performance.
From our experiment, results showed that subjects under low time pressure performed better than those under high time pressure. This is in line with the findings of past studies that showed that high time pressure has a detrimental effect on performance.
Our experiment also examined the effects of warning of impending high time pressure on subjects. Interestingly, the results indicated that by giving adequate warning of impending high time pressure, performance improved significantly. Thus, subjects facing the same high time pressure but given the warning must have adapted in some ways to perform better.ACCOUNTANC
The effects of preparer's justification on reviewer's judgment.
No full textNotwithstanding the importance of the quality assurance role of the review process (Solomon 1987, Abdel-Khalik and Solomon 1989, AICPA 1992, AU311.13), to date, audit research offers little insight into the impact of the review process on the reviewer's cognition and decision (Libby and Trotman 1993; Rich, Solomon and Trotman 1994). In particular, little is known about how contextual variations affect the effectiveness of the review process (Rich, Solomon and Trotman 1994; Asare and McDaniel 1996). This dissertation seeks to extend current research by investigating the effect of a contextual feature of the review process, namely the preparer's justification memo, on reviewer's likelihood assessment.Doctor of Philosophy (NBS
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