Behavioral Economics of Accounting : A Review of Archival Research on Individual Decision Makers
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
Original language | English |
---|---|
Pages (from-to) | 1150-1214 |
Journal / Publication | Contemporary Accounting Research |
Volume | 39 |
Issue number | 2 |
Online published | 11 Oct 2021 |
Publication status | Published - 2022 |
Link(s)
DOI | DOI |
---|---|
Attachment(s) | Documents
Publisher's Copyright Statement
|
Link to Scopus | https://www.scopus.com/record/display.uri?eid=2-s2.0-85122075431&origin=recordpage |
Permanent Link | https://scholars.cityu.edu.hk/en/publications/publication(b2858e1a-8681-4b39-8bff-2383c407ede7).html |
Abstract
This paper develops a unified framework to synthesize the growing stream of positive research on the role of individual decision makers in shaping observed accounting phenomena. This line of research recognizes two central ideas in behavioral economics. First, individual behavior depends not only on economic incentives and accessible information, but also on individual preferences, ability, experiences, and other characteristics. Second, the constraints that structure human interactions encompass both formal institutions (e.g., rules, laws, constitutions) and informal institutions (e.g., norms, conventions, rituals). Our review covers a broad set of individuals that are of interest in accounting research: managers, directors, audit partners, analysts, standard setters, politicians, judges, journalists, loan officers, financial advisors, and investors. We aim to understand the systematic effects of individual characteristics on a wide spectrum of accounting phenomena including financial reporting, disclosure, tax planning, auditing, and corporate social responsibility. We highlight the importance of personal characteristics not only for an individual’s own behavior, but also for others’ perceptions. Our review mainly focuses on archival research in accounting and provides some thoughts about opportunities for archival empiricists going forward. We also, when feasible, highlight opportunities for future field, survey, and experimental research. A central takeaway from our review is that individual-level factors significantly improve our ability to explain and predict accounting phenomena beyond firm-, industry-, and market-level factors.
Research Area(s)
- Accounting, behavioral economics, individual decision makers, Homo economicus, Homo sapiens, informal institutions
Bibliographic Note
Research Unit(s) information for this publication is provided by the author(s) concerned.
Citation Format(s)
Behavioral Economics of Accounting: A Review of Archival Research on Individual Decision Makers. / Hanlon, Michelle; Yeung, Kelvin; Zuo, Luo.
In: Contemporary Accounting Research, Vol. 39, No. 2, 2022, p. 1150-1214.
In: Contemporary Accounting Research, Vol. 39, No. 2, 2022, p. 1150-1214.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Download Statistics
No data available