In this paper we report the results of two experiments that investigate auditing covariation-estimate revisions when there are countervailing incentives for effectiveness and efficiency. Covariation estimates assess the degree of association between a 'Clue' that auditors might observe, and its...

This paper discusses a recently published handbook on neuroeconomics (Glimcher et al., 2009H) and extends the discussion to reasons why this newly emerging discipline should be of interest to behavioral accounting researchers. We evaluate the achieved and potential contribution of neuroeconomics...

In this paper, we assess the equity value relevance of disclosure-derived financial statement adjustments. Prior literature has explored only the incremental explanatory power of individual adjustments, or has assessed the superiority of earnings recast using only a subset of prescribed...

We investigate whether the financial riskiness of large US audit firm clienteles varied with the changing audit litigation liability environment during the period 1975-1999. Partitioning the period of study into four distinct periods [a benchmark period (1975-1984), a period of increasing...

The existence of base rate fallacy (BRF) bias is explored employing: (i) a context treatment with a narrative story applied to asset markets and (ii) an isomorphic abstract setting using balls-and-bingo cages. Probability estimates reflect a BRF bias in both treatments, but is stronger with...

Experimental Markets were used to examine whether individual probability judgment biases affect market prices. This issue is important to accountants because users of accounting information (especially investors) face competitive market environments. The expectation was that it would be more...

We experimentally examine determinants of the transferability and durability of an assurer's flagship-service reputation for competence in a multi-service context. Economic and psychology theories agree that transferability will increase when a new service and a flagship service require...