Prior research demonstrates that forecast optimism is, in part, a consequence of analysts' cognitive reactions to the scenarios managers use to communicate future plans. In two experiments, we examine whether counter-explanation (explaining why managers' plans could fail) reduces...

This paper reports the results of an experiment that examines how analyst forecast accuracy (i.e., how close an analyst's forecast is to realized earnings) and forecast boldness (i.e. how far the analyst's forecast is from the consensus forecast) affect the analyst's perceived credibility and...

Based on literature on auditor expertise and workplace learning, this paper develops the Auditor Workplace Learning Framework. The Auditor Workplace Learning Framework distinguishes three categories of learning processes based on the extent to which (1) learning is an important focus of a...

This paper outlines strengths and limitations of three approaches to providing process evidence in experimental accounting research: moderation, mediation, and multiple experiments and methods. We argue that the research question determines the importance of process evidence in experimental...

Attitudes play an important role in determining how the audit will be conducted, and thus, directly impact audit quality. In particular, regulators require that auditors maintain an attitude of professional skepticism and independence of mind throughout the financial statement audit. Despite the...

This study investigates whether providing higher quality audits increases auditors' chances of avoiding legal liability. Negligence rules hold auditors responsible for plaintiff losses only when the quality of the audit provided fails to meet standards of care. The results of my experiment...

We examine recent developments in judgment and decision making (JDM) research to provide insight into how two big ideas in this area can be leveraged as overlapping frameworks to examine and improve auditor judgment. The ideas are (1) that human thinking and reasoning can be characterized by a...

We conduct two experiments to examine potential causes of the disposition effect. In Experiment 1, we rule out beliefs in mean reversion as a cause of the disposition effect. Although a belief in the mean reversion of stock prices should be independent of whether an investor owns or only follows...