Insights into some psychological triggers that affect judgements, decision-making and accounting choices

Journal Title: Economic Research-Ekonomska Istraživanja - Year 2018, Vol 31, Issue 1

Abstract

The main objective of the study is to identify and qualitatively investigate the links between the universe of accounting options, managerial decisions, creative accounting and irrational behaviour. We have recognised five different aspects affecting human decisions and which are likely to influence the behaviour of a future professional accountant or a manager. Masters students in accounting from three significant Romanian universities were questioned about their perception regarding creative accounting and were investigated about their personality traits. The results of our experimental study have shown that, according to the M.A. students in accounting, the risk aversion of individuals influences the expressions of the creative accounting phenomenon, but it is not correlated with the interest pursued by the managers in choosing accounting policies. Also, in their perception, the act of managerial decision-making in accounting is not influenced by the individual capacities of the decision-maker to take decisions. Respondents believe that the disposition effect is correlated with the choice of accounting policy to maximise or minimise the company’s income and that there is a link between the financial incentives granted by the managers to the accounting professionals in order to beautify the financial statements and the creative accounting practices.

Authors and Affiliations

Victoria Bogdan, Ioana Teodora Meșter, Diana Matica

Keywords

Related Articles

The impact of clustering on the business performance of Croatian SMHEs

The purpose of this paper is to study how clustering affects the results of operations of small and medium hospitality enterprises (SMHEs) in Croatia and to support SMHEs tend to cluster, forming critical masses in one p...

How can we apply the models of the quality of life and the quality of life management in an economy based on knowledge?

The scientific substantiations of quality have been applied to models that pertain to mathematical statistics, the probability theory, the information theory, fuzzy systems, graphic methods, time series, and algebraic an...

The idea of investor relations in the modern economy: a communication approach

The main goal of this article is to present systematic deduction of the idea of Investor Relations (IR) in a communication perspective. I have made a several specific distinctions to introduce the current concept of IR a...

Examining agency governance in the European Union financial sector – a case-study of the European Securities and Markets Authority

Ever since the outset of the financial crisis of 2009, agencies have emerged as key actors of European Union (EU) financial sector governance. As an organisational form that can be insulated from national political press...

External imbalances in emerging and advanced European countries

This paper aims to explain some developments in current accounts across advanced and emerging European countries with a fixed exchange rate. Our main goal is to identify key factors affecting the external imbalances. Thi...

Download PDF file
  • EP ID EP543362
  • DOI 10.1080/1331677X.2018.1476169
  • Views 56
  • Downloads 0

How To Cite

Victoria Bogdan, Ioana Teodora Meșter, Diana Matica (2018). Insights into some psychological triggers that affect judgements, decision-making and accounting choices. Economic Research-Ekonomska Istraživanja, 31(1), 1289-1306. https://europub.co.uk/articles/-A-543362