Report format and the decision makers task: an experimental investigation

Article Abstract:

The mode of presentation of financial information can affect the judgement of auditors and the decision making capabilities of financial statement users. Accounting researchers studying the impact of the presentation of financial information on the the decision making process conducted an experiment in which thirty MBA students were given financial information in four forms, line graph, bar chart, pie chart, and table, and asked to answer a set of questions. Research reveals the information needs of the decision maker and the mode of presentation interact, with the most appropriate mode being dependent on the user's question. While no one form of presentation is best for all situations, tabular presentations of accounting information are superior to graphic modes in most cases.

Decision-making, Decision making, Analysis

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A comparison of compensatory and noncompensatory models of judgment: effects of task predictability and degrees of freedom

Article Abstract:

Linear compensatory models of judgment and nonlinear, noncompensatory models of judgement are compared in terms of their predictive, diagnostic and structural validity. The study involves a bankruptcy prediction task in which each of the two types of models has two levels of task predictability and degrees of freedom. Research data are drawn from 44 MBA students and concurrent information acquisition protocols are employed to develop measures of cue importance and noncompensatory processing. The results show that hierarchical partitioning methods, the noncompensatory judgment models studied, have considerably greater predictive and structural validity than linear models when there is high task predictability and low degrees of freedom.

Models, Judgment, Judgment (Psychology)

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Effects of small business accounting bases and accountant service levels on loan officer decisions

Article Abstract:

The presentation of financial reports which incorporate general accounting principals are expensive for small businesses. The study examines loan officer decisions when compiling financial reports prepared on different mixtures of accounting and services levels, such as Generally Accepted Accounting Principles, income tax, audit and review services. It shows that the interaction of accounting basis and services levels affect confidence and that loan officers are unable to differentiate between accounting and service levels.

Methods, Accounting

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