How decision preference impacts the use of persuasive communication frames in accounting

Abstract

Capital budgeting decisions frequently go awry. We investigate whether the party gathering the data utilizes persuasive communications when presenting the information to a superior. Specifically, we analyze whether the information is framed differently depending on his or her opinion. Since prior research has shown that differential framing of the same information affects decisions this may be one contributor to capital budgeting failures. We found that participants did frame the information differently depending on whether they chose to accept or reject the project. Our control group, no decision required, was materially different from the reject group but not materially different from the accept group.

Citation

Allport, C.D., Brozovsky, J.A. and Kerler, W.A. (2010), "How decision preference impacts the use of persuasive communication frames in accounting", Epstein, M.J. and Lee, J.Y. (Ed.) Advances in Management Accounting (Advances in Management Accounting, Vol. 18), Emerald Group Publishing Limited, Leeds, pp. 111-148. https://doi.org/10.1108/S1474-7871(2010)0000018008