The effects of expected and actual accounting choices on judgments and decisions

Accounting Review

Volumn 84, Issue 5, 2009, Pages 1465-1493

  Clor Proell, Shana M ^a  

^a UNIVERSITY OF WISCONSIN MADISON   (United States)

Author keywords

Accounting choices; Accounting estimates; Expectancy violations theory; Stock based compensation

Indexed keywords

EID: 72149123406     PISSN: 00014826     EISSN: None     Source Type: Journal    
DOI: 10.2308/accr.2009.84.5.1465     Document Type: Article

References (40)

1. Aboody, D., M. Barth, and R. Kasznik. 2004. Firms' voluntary recognition of stock-based compensation expense. Journal of Accounting Research 42: 123-150. (Pubitemid 38652287)
2. Accounting Principles Board (APB). 1972. Accounting for Stock Issues to Employees. APB Opinion No. 25. New York, NY: APB.
3. Ackert, L. F., B. K. Church, and M. Shehata. 1996. What affects individuals' decisions to acquire forecasted information? Contemporary Accounting Research 13 (Fall) : 379-399.
4. Ackert, L. F., B. K. Church, and M. Shehata 1997. An experimental examination of the effects of forecast bias on individuals' use of forecasted information. Journal of Accounting Research 35 (1) : 25-42.
5. Allessandri, T., and R. Khan. 2006. Market performance and deviance from industry norms: (Mis) alignment of organizational risk and industry risk. Journal of Business Research 59 (10/11) : 1105-1115.
6. Baron, R. M., and D. A. Kenny. 1986. The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology 51 (6) : 1173-1182.
7. Bartov, E., D. Givoly, and C. Hayn. 2002. The rewards to meeting or beating earnings expectations. Journal of Accounting and Economics 33 (2) : 173-204.
8. Bevan, J. L. 2003. Expectancy violation theory and sexual resistance in close, cross-sex relationships. Communication Monographs 70 (1) : 68-82.
9. Burgoon, J. K. 1983. Nonverbal violations of expectations. In Nonverbal Interaction, edited by J. M. Wiemann, and R. P. Harrison, 77-112. Beverly Hills, CA: Sage.
10. Burgoon, J. K. and J. L. Hale. 1988. Nonverbal expectancy violations: Model elaboration and application to immediacy behaviors. Communication Monographs 55: 58-79.
11. Burgoon, J. K. D. A. Newton, J. B. Walther, and E. J. Baesler. 1989. Nonverbal expectancy violations and conversational involvement. Journal of Nonverbal Behavior 13: 97-120.
12. Burgoon, J. K. and B. A. LePoire. 1993. Effects of communication expectancies, actual communication, and expectancy disconfirmation on evaluations of communicators and their communication behavior. Human Communication Research 20: 75-107.
13. Burgoon, J. K. and M. Burgoon. 2001. Expectancy Theories. In The New Handbook of Language and Social Psychology, edited by W. P. Robinson, and H. Giles, 79-99. London, U. K.: John Wiley & Sons, Ltd.
14. Campo, S., K. A. Cameron, D. Brossard, and M. S. Frazer. 2004. Social norms and expectancy violation theories: Assessing the effectiveness of health communication campaigns. Communication Monographs 71 (4) : 448-470.
15. Campo, S. and K. A. Cameron. 2006. Differential effects of exposure to social norms campaigns: A cause for concern. Health Communication 19 (3) : 209-219.
16. Chatterjee, S., M. Lubatkin, and W. Schulze. 1999. Toward a strategic theory of risk premium: Moving beyond CAPM. Academy of Management Review 24 (3) : 556-567.
17. Financial Accounting Standards Board (FASB). 1984. Recognition and Measurement in Financial Statements of Business Enterprises. Statement of Financial Accounting Concepts No. 5. Stamford, CT: FASB.
18. Financial Accounting Standards Board (FASB). 1995. Accounting for Stock-Based Compensation. Statement of Financial Accounting Standards No. 123. Norwalk, CT: FASB.
19. Financial Accounting Standards Board (FASB). 2004. Shared-Based Payments. Statement of Financial Accounting Standards No. 123R. Norwalk, CT: FASB.
20. Frederickson, J. R., F. Hodge, and J. Pratt. 2006. The evolution of stock option accounting: Disclosure, voluntary recognition, mandated recognition, and management disavowals. The Accounting Review 81 (5) : 1073-1093.
21. Griffin, K. 1967. The contribution of studies of source credibility to a theory of interpersonal trust in the communication process. Psychological Bulletin 68 (2) : 104-120.
22. Hirst, D. E., L. Koonce, and P. J. Simko. 1995. Investor reactions to financial analysts' research reports. Journal of Accounting Research 33 (2) : 335-351.
23. Hirst, D. E.and P. Hopkins. 1998. Comprehensive income reporting and analysts' valuation judgments. Journal of Accounting Research 36 (Supplement) : 47-75.
24. Hodge, F., S. Kennedy, and L. Maines. 2004. Does search-facilitating technology improve the transparency of financial reporting? The Accounting Review 79 (3) : 687-703.
25. Hodge, F. P. Hopkins, and J. Pratt. 2006. Management reporting incentives and classification credibility: The effects of reporting discretion and reputation. Accounting, Organizations and Society 31 (7) : 623-634.
26. Hopkins, P. E. 1996. The effect of financial statement classification of hybrid financial instruments on financial analysts' stock price judgments. Journal of Accounting Research 34 (Supplement) : 33-50.
27. Hopkins, P. E. R. W. Houston, and M. F. Peters. 2000. Purchase, pooling, and equity analysts' valuation judgments. The Accounting Review 75 (3) : 257-281.
28. Houser, M. L. 2005. Are we violating their expectations? Instructor communication expectations of traditional and nontraditional students. Communication Quarterly 53 (2) : 213-228.
29. Hovland, C., I. Janis, and H. Kelley. 1953. Communication and Persuasion. New Haven, CT: Yale University Press.
30. Kenny, D. A., D. A. Kashy, and N. Bolger. 1998. Data analysis in social psychology. In The Handbook of Social Psychology, edited by D. T. Gilbert, and S. T. Fiske., Vol. 1, 233-265. 4th edition. New York, NY: McGraw-Hill.
31. Kieso, D. E., J. J. Weygandt, and T. D. Warfield. 2007. Intermediate Accounting. 12th edition. Hoboken, NJ: John Wiley & Sons.
32. Kleinbaum, D. G., L. L. Kupper, K. E. Muller, and A. Nizam. 1998. Applied Regression Analysis and Multivariable Methods. 3rd edition. Pacific Grove, CA: Brooks/Cole Publishing Company.
33. LePoire, B. A., and J. K. Burgoon. 1994. Two contrasting explanations of involvement violations: Expectancy violations theory and discrepancy arousal theory. Human Communication Research 20: 560-591.
34. Maines, L. A., L. S. McDaniel, and M. S. Harris. 1997. Implications of proposed segment reporting standards for financial analysts' investment judgments. Journal of Accounting Research 35 (Supplement) : 1-24.
35. Maines, L. A. and M. S. Harris. 2000. Effects of comprehensive income volatility on non-professional investors' judgments: the role of presentation format. The Accounting Review 75 (April) : 179-207.
36. Mercer, M. 2005. The fleeting effects of disclosure forthcomingness on management's reporting credibility. The Accounting Review 80 (2) : 723-744.
37. Nelson, M. W., S. D. Smith, and Z. Palmrose. 2005. The effect of quantitative materiality approach on auditors' adjustment decisions. The Accounting Review 80 (3) : 897-920.
38. Palepu, K. G., P. M. Healy, and V. Bernard. 2000. Business Analysis & Valuation: Using Financial Statements. 2nd edition. Cincinnati, OH: South-Western College Publishing.
39. Pyszczynski, T. A., and J. Greenberg. 1981. Role of disconfirmed expectancies in the instigation of attributional processing. Journal of Personality and Social Psychology 40 (1) : 31-38.
40. Tan, H. T., R. Libby, and J. E. Hunton. 2002. Analysts' reactions to earnings preannouncement strategies. Journal of Accounting Research 40 (1) : 223-246.