The influence of self-interest and ethical considerations on managers' evaluation judgments
Article Abstract:
A study was conducted to analyze the effects of self-interest and ethical considerations on managers' evaluation decisions. The study examined conflicts surrounding cognitive moral development theory and agency theory. An interaction effect is developed wherein ethical considerations and adverse selection conditions influence a continued failing course of action for an economic decision. Results indicated that the degree of moral reasoning and adverse-selection conditions significantly influence managers' project evaluation decisions. Findings also showed that managers are more likely to continue a project that is forecasted to be unprofitable during the presence of adverse selection conditions and a low level of moral reasoning.
Publication Name: Accounting, Organizations and Society
Subject: Business
ISSN: 0361-3682
Year: 1999
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Confidence and the welfare of less-informed investors
Article Abstract:
Issues discussed concern the US Securities and Exchange Commission's goal to lessen the information disadvantage of some investors relative to others. Topics addressed include over-confidence in less-informed investors, the psychological aspects of investment strategy, and how guidance can reduce the over-confidence of less-informed investors.
Publication Name: Accounting, Organizations and Society
Subject: Business
ISSN: 0361-3682
Year: 1999
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