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Judgment and Decision Making in Project Continuation: A Study of Students as Surrogates for Experienced Managers

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  • C. Janie Chang
  • Joanna L. Y. Ho

Abstract

This work explores the efficacy of using students as surrogates for experienced managers in escalation studies. Participants were 222 managers with substantial project planning and evaluation experience and 146 undergraduate business students. Our results show that the experienced managers exhibited a strong tendency to continue projects, with this tendency being positively related to the degree of project completion. The managers also tended to invest a greater amount of additional resources in response to favourable rather than to unfavourable information, contingent on the degree of project completion. In contrast, the students’ decisions showed little sensitivity to the contextual information, and they exhibited no association between the likelihood they would continue a project and how much funding they would allocate to the project. These results suggest that caution is needed in generalizing student‐based escalation findings to real‐world business settings.

Suggested Citation

  • C. Janie Chang & Joanna L. Y. Ho, 2004. "Judgment and Decision Making in Project Continuation: A Study of Students as Surrogates for Experienced Managers," Abacus, Accounting Foundation, University of Sydney, vol. 40(1), pages 94-116, February.
    • Handle: RePEc:bla:abacus:v:40:y:2004:i:1:p:94-116
    DOI: 10.1111/j.1467-6281.2004.00145.x
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    References listed on IDEAS

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    1. Frederick, Dm & Libby, R, 1986. "Expertise And Auditors Judgments Of Conjunctive Events," Journal of Accounting Research, Wiley Blackwell, vol. 24(2), pages 270-290.
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    1. C. Chang & Sin-Hui Yen, 2007. "The Effects of Moral Development and Adverse Selection Conditions on Managers’ Project Continuance Decisions: A Study in the Pacific-Rim Region," Journal of Business Ethics, Springer, vol. 76(3), pages 347-360, December.

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