How do information ambiguity and timing of contextual information affect managers' goal congruence in making investment decisions in good times vs. bad times?

Journal of Risk and Uncertainty

Volumn 31, Issue 2, 2005, Pages 163-186

  Ho, Joanna L Y ^a   Keller, L Robin ^a   Keltyka, Pamela ^b  

^a UNIVERSITY OF CALIFORNIA   (United States)

^b UNIVERSITY OF AKRON   (United States)

Author keywords

Firm value maximization; Information ambiguity; Presentation mode; Self serving bias

Indexed keywords

EID: 25444440559     PISSN: 08955646     EISSN: 15730476     Source Type: Journal    
DOI: 10.1007/s11166-005-3553-8     Document Type: Article

References (42)

1. Berry, A. J. (1984). "The Control of Capital Investment," Journal of Management Studies 21(1), 61-81.
2. Booth, P. and A. K.-D. Schulz. (2004). "The Impact of an Ethical Environment on Managers' Project Evaluation Judgments Under Agency Problem Conditions," Accounting, Organizations and Society 29(5/6), 473-488.
3. Bower, J. L. (1986). Managing the Resource Allocation Process 2nd ed. Boston: Harvard Business School Press.
4. Bowman, E. H. (1982). "Risk Seeking by Troubled Firms," Sloan Management Review 23(4), 33-42.
5. Curley, S. P. and J. F. Yates. (1985). "The Center and Range of the Probability Interval as Factors Affecting Ambiguity Preferences," Organizational Behavior and Human Decision Processes 36, 273-287.
6. Demski, J. S. (1997). Managerial Uses of Accounting Information, Kluwer Academic Publsihers.
7. Einhorn, H. J. and R. M. Hogarth. (1985). "Ambiguity and Uncertainty in Probabilistic Inference," Psychological Review 92(4), 433-461.
8. Fatemi, A. M., J. S. Ang, and J. H. Chua. (1983). "Evidence Supporting Shareholder Wealth Maximization in Management Controlled Firms," Applied Economics 15, 49-60.
9. Feltham, G. A. and J. Xie. (1994). "Performance measure congruity and Diversity in Multi-Task Principal/Agent Relations," The Accounting Review 69(3) 429-453.
10. Gonzales-Vallejo, C., A. Bonazzi, and A. J. Shapiro. (1996). "Effects of Vague Probabilities and of Vague Payoffs on Preference: A Model Comparison Analysis," Journal of Mathematical Psychology 40, 130-140.
11. Heerema, D. L. and R. L. Rogers. (1991). "Is Your Cost Accounting System Benching Your Team Players?" Management Accounting (Sept.), 35-40.
12. Ho, J. L. Y., L. R. Keller, and P. Keltyka. (2002). "Effects of Outcome and Probabilistic Ambiguity on Managerial Choices," Journal of Risk and Uncertainty 24(1), 47-74.
13. Ho, J. L. Y., L. R. Keller, and P. Keltyka. (2001). "Managers' Variance Investigation Decisions: An Experimental Examination of Probabilistic and Outcome Ambiguity," Journal of Behavioml Decision Making 14, 257-278.
14. Ho, J. L. Y. and S. C. Vera-Munoz. (2001). "Opportunism in Capital Budget Recommendations: The Effects of Past Performance and Its Attributions," Decision Sciences 32(3), 423-447.
15. Hogarth, R. M. and H. Kunreuther. (1989). "Risk, ambiguity and insurance," Journal of Risk and Uncertainty 2, 5-35.
16. Horngren, C. T., G. Foster, and S. M. Datar. (1997). Cost Accounting, 9th edition. Englewood Cliffs, NJ: Prentice Hall.
17. Hsee, C. K. (1995). "Elastic Justification: How Tempting But Task-Irrelevant Factors Influence Decisions," Organizational Behavior and Human Decision Processes 62(3), 330-337.
18. Hsee, C. K. (1996). "Elastic Justification: How Unjustifiable Factors Influence Judgments," Organizational Behavior and Human Decision Processes 66(1), 122-129.
19. Kachelmeier, S. J. and M. Shehata. (1994). "Examining Risk Preferences Under High Monetary Incentives," The American Economic Review (September), 1105-1106.
20. Kahneman, D. and A. Tversky. (1979). "Prospect Theory: An Analysis of Decision Under Risk," Econometrica 47, 263-291.
21. Kahneman, D. and A. Tversky. (1984). "Choices, Values and Frames," American Psychologist 29(4), 3441-350.
22. Keppel, G. (1991). Design and Analysis 3rd edition, Englewood Cliffs, NJ: Prentice-Hall, Inc.
23. Kida, T., K. Moreno, and J. F. Smith. (2001). "The Influence of Affect on Managers' Capital Budgeting Decisions," Contemporary Accounting Research 18(3), 477-495.
24. Kleinmuntz, B. and D. Kleinmuntz. (2003). "Multiobjective Capital Budgeting in Not-for-Profit Hospitals and Healthcare Systems," Working paper. University of Illinois.
25. Kuhn, K. M. and D. V. Budescu. (1996). "The relative Importance of Probabilities, Outcomes, and Vagueness in Hazard Risk Decisions," Organizational Behavior and Human Decision Processes 68, 301-317.
26. Kunreuther, H. (1989). "The Role of Actuaries and Underwriters Insuring Risks: The Case of Environmental Pollution Liability Coverage," Risk Analysis 9, 319-328.
27. Kunreuther, H., J. Meszaros, R. M. Hogarth, and M. Spranca. (1995). "Ambiguity and Underwriter Decision Processes," Journal of Economic Behavior and Organization 26, 337-352.
28. Laughhunn, D. J., J. Payne, and R. Crum. (1980). "Managerial Risk Preferences for Below-Target Returns," Management Science 26(12), 1238-1249.
29. Moreno, K., T. Kida and J. F. Smith. (2002). "The Impact of Affective Reactions on Riskyh Decision Making in Accounting Contexts," Journal of Accounting Research 40(5), 1331-1350.
30. Morse, D. C. and J. L. Zimmerman. (1997). Managerial Accounting, Chicago: Irwin.
31. Mukherjee, T. K. and G. V. Henderson. (1987). "The Capital Budgeting Process: Theory and Practice," Interfaces 17(2), 78-90.
32. Oliver, B. L. (1972). "A Study of Confidence Interval Financial Statements," Journal of Accounting Research 10, 154-166.
33. Pinches, G. E. (1982). "Myopia, Capital Budgeting and Decision Making," Financial Management (Autumn), 6-19.
34. Raiborn, C. A., J. T. Barfield, and M. R. Kinney. (1999). Managerial Accounting, 3rd ed., Cincinnati: South-Western College Publishing.
35. Reimann, B. C. 1990. "A Session for Students of Shareholder Value Creation," Planning Review (May-June), 42-44.
36. Ruhl, J. M. and S. S. Cowen. (1992). "Breaking the Barriers to Value Creation," Management Accounting (March), 44-47.
37. Russo, J.E., M.G. Meloy, and T.J. Wilks. (2000). "Predecisional Distortion of Information by Auditors and Salespersons," Management Science 46, 13-27.
38. Scapens, R. W. and J. T. Sale. (1981). "Performance Measurement and Formal Capital Expenditure Controls in Divisionalized Companies," Journal of Business Finance and Accounting 8, 3.
39. Thackray, J. (1985). "America's Management Mischief," Management Today (Feb.)(80-84), 112-117.
40. Viscusi, W. K. and H. Chesson. (1999). "Hopes and Fears: The Conflicting Effects of Risk Ambiguity," Theory and Decision 47, 153-178.
41. Viscusi, W. K. and W. A. Magat. (1992). "Bayesian Decisions with Ambiguous Belief Aversion," Journal of Risk and Uncertainty 5, 371-387.
42. Zimmerman, J. (1997). Accounting for Decision Making and Control, 2nd edition, Chicago, IL: Irwin-McGraw-Hill.