Management reporting incentives and classification credibility: The effects of reporting discretion and reputation
| Autor: | Patrick E. Hopkins, Frank D. Hodge, Jamie H. Pratt |
|---|---|
| Rok vydání: | 2006 |
| Předmět: |
Organizational Behavior and Human Resource Management
Information Systems and Management Actuarial science Sociology and Political Science business.industry media_common.quotation_subject Perceived credibility Accounting Discretion Consistency (negotiation) Incentive Credibility Business Reputation media_common |
| Zdroj: | Accounting, Organizations and Society. 31:623-634 |
| ISSN: | 0361-3682 |
| DOI: | 10.1016/j.aos.2005.12.003 |
| Popis: | In this study we investigate how the level of discretion in the reporting environment and management’s reporting reputation influence the extent to which management’s reporting incentives are important in determining the perceived credibility of management’s classification choices. Consistent with prior research, we show that users view incentive-inconsistent classifications as more credible than incentive-consistent classifications. We extend this finding by showing that the strength of this relationship (i.e., the extent to which users consider the consistency between the classification and management’s reporting incentives) depends on the level of discretion in the reporting environment and management’s reporting reputation. We find that users rely less (more) on the consistency between management’s reporting incentives and the classification in a mandated (discretionary) reporting environment and when managers have a good (poor) reporting reputation. We conclude by discussing the implications of our findings and potential future research. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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