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1 – 10 of over 13000William A. Kerler, A. Scott Fleming and Christopher D. Allport
The purpose of this study is to investigate the effects of attribute frames and justifications on capital budgeting decisions and to examine whether the requirement to provide…
Abstract
Purpose
The purpose of this study is to investigate the effects of attribute frames and justifications on capital budgeting decisions and to examine whether the requirement to provide justification for a capital budgeting decision moderates the effect of attribute frames.
Methodology
One-hundred and eleven participants made a capital budgeting decision in an experimental case that manipulated the frame of the financial evidence provided and the requirement to provide a justification.
Findings
Results suggest that both attribute frames and justifications affect capital budgeting decisions but the requirement to provide justifications did not moderate the effect of attribute frames.
Originality/value
This study contributes to the capital budgeting literature by identifying two factors that may bias judgments. This study also contributes to the framing literature by examining one potential method of moderating framing effects – requiring justification for decisions.
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Christopher D. Allport, John A. Brozovsky and William A. Kerler
Capital budgeting decisions frequently go awry. We investigate whether the party gathering the data utilizes persuasive communications when presenting the information to a…
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.
William A. Kerler, Christopher D. Allport and A. Scott Fleming
Capital budgeting projects fail about as often as they succeed. Recent research shows that accountants may frame information related to capital budgeting projects to be consistent…
Abstract
Capital budgeting projects fail about as often as they succeed. Recent research shows that accountants may frame information related to capital budgeting projects to be consistent with their preference for the project (e.g., accept or reject), perhaps in order to persuade management to agree with them. Psychology research consistently shows that framed information results in systematic differences in judgments. The purpose of this study is to examine whether framed information affects capital budgeting decisions, and to examine whether this effect is moderated by the importance of the potential project. Results from an experimental case completed by 173 participants indicate attribute frames affect capital budgeting decisions, however, the effect is moderated by the importance of the decision.
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Marybeth M Murphy and Joanne P Healy
Recent events have shown that earnings management is a significant problem in the business world and that the culture in place in many organizations may encourage managers to…
Abstract
Recent events have shown that earnings management is a significant problem in the business world and that the culture in place in many organizations may encourage managers to manipulate earnings. While prior research has shown that earnings management exists at the corporate level, it has not examined whether managers at the divisional level are motivated to manage earnings. The purpose of this study is to examine whether divisional managers will be more inclined to manage earnings in order to maximize personal wealth. The secondary research objective is to examine whether the information frame will impact discretionary management accounting decisions. Members of the Institute of Management Accountants participated in an earnings management study in which two conditions were manipulated. First, the annual compensation of subjects was contingent on whether target income was met or not met. Second, information about a potentially obsolete inventory item was framed as either positive or negative. Subjects were asked the likelihood they would write off the potentially obsolete inventory. Research findings support the earnings management hypothesis and indicate that managers are less likely to write off obsolete inventory when their compensation is impacted by the write-off. Study results also reveal that the manner in which the inventory information is framed may affect managers’ write-off decision. These results are important as they may indicate that earnings management is more pervasive throughout the organization than previously shown.
Sarah Chiumbu, Nkosinothando Mpofu and Konosoang Sobane
Fear appeals are persuasive messages that attempt to arouse fear to motivate or influence behaviour change and are widely used in health promotion. This chapter analyses how fear…
Abstract
Fear appeals are persuasive messages that attempt to arouse fear to motivate or influence behaviour change and are widely used in health promotion. This chapter analyses how fear appeal messaging was used by the Namibian and South African mainstream print media to communicate COVID-19 during the two countries’ main waves of the pandemic. Specifically, we examine the framing strategies that the media used to persuade behaviour change. Mainstream media has enormous potential to influence health-related behaviour and perceptions. Therefore, it is compelling to examine the mainstream media’s framing of COVID-19. This study draws on framing theory to examine media frames and the use of fear appeal in the coverage of COVID-19 in the top English-language newspapers in the two countries. We argue in this chapter that using fear appeals in public health communication by the media may be counterproductive as a tool of persuasion.
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Lin Ching Chen and Yaw-Huei Chen
This chapter reports a six-year integrated information literacy instruction program in Taiwan that brought together concepts from informed learning, especially the six frames…
Abstract
This chapter reports a six-year integrated information literacy instruction program in Taiwan that brought together concepts from informed learning, especially the six frames, with inquiry-based learning frameworks in schools. A total of eleven inquiry projects have been implemented from grades 1 through 6. Six projects selected for each grade are explained in detail. The themes of the projects are designed based on the essence of six frames, each project involving one to three frames depending on the integrated subjects. Through the descriptions, we present how the information literacy instruction is integrated into various subject matters via the framework of inquiry-based learning, such as the Super3 and Big6 models. Students’ performances in subject content and information literacy of the six projects are delineated quantitatively and qualitatively.
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