For stakeholders, such as investors and lenders, to appropriately assess a company's financial performance, the reported accounting earnings must closely reflect the economic reality of the organization's financial activity throughout the reporting period. The degree to which reported earnings...

A well–known implication of microeconomic theory is that sunk costs should have no effect on decision making. We test this hypothesis with a human–subjects experiment. Students recruited from graduate business courses, with an average of over six years of work experience, played the role of...

Purpose – The purpose of this paper is to investigate whether audit professionals exhibit greater performance evaluation bias compared to non-accounting professionals. Design/methodology/approach – Both audit and non-accounting professional subjects read a case study and evaluated the...