IDEAS home Printed from https://ideas.repec.org/a/mth/ajfa88/v2y2010i1p25-46.html
   My bibliography  Save this article

Information Quantity and Order in Students’ Tax Research Judgements

Author

Listed:
  • Alexander Gelardi

Abstract

The Belief Adjustment model predicts recency effects for complex information encoded in a step-by-step process. However, the literature indicates that the recency effect may not carry-over to larger numbers of pieces of information. This may be a problem with the amount of information now available through the internet. Tax research tasks can have a number of pieces of information (cues). How tax students process information has not been studied extensively. This study extended prior work by investigating the effect of series of four, eight, and twelve cues on tax decisions made by undergraduate tax students. It was found that there was a strong overall recency order effect. However, the recency order effect seemed to be driven by the longer cue series, rather than by the shorter cue series. This is contrary to the predictions of the Belief Adjustment model. Keywords- Accounting Recency Tax Judgments Belief Adjustment ModelJEL Classifications- H24, H29, H34, C12, C21, C91, M41

Suggested Citation

  • Alexander Gelardi, 2010. "Information Quantity and Order in Students’ Tax Research Judgements," Asian Journal of Finance & Accounting, Macrothink Institute, vol. 2(1), pages 2546-2546, December.
    • Handle: RePEc:mth:ajfa88:v:2:y:2010:i:1:p:25-46
    as

    Download full text from publisher

    File URL: https://www.macrothink.org/journal/index.php/ajfa/article/view/90
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Harry Markowitz, 1952. "The Utility of Wealth," Journal of Political Economy, University of Chicago Press, vol. 60(2), pages 151-151.
    2. W. Robert Knechel & William F. Messier, 1990. "Sequential auditor decision making: Information search and evidence evaluation," Contemporary Accounting Research, John Wiley & Sons, vol. 6(2), pages 386-406, March.
    3. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    4. Gibbins, M, 1984. "Propositions About The Psychology Of Professional Judgment In Public Accounting," Journal of Accounting Research, Wiley Blackwell, vol. 22(1), pages 103-125.
    5. Butt, Jane L. & Campbell, Terry L., 1989. "The effects of information order and hypothesis-testing strategies on auditors' judgments," Accounting, Organizations and Society, Elsevier, vol. 14(5-6), pages 471-479, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Johnson, Eric N., 1995. "Effects of information order, group assistance, and experience on auditors' sequential belief revision," Journal of Economic Psychology, Elsevier, vol. 16(1), pages 137-160, March.
    2. Christopher Koch & Annette Koehler & Kristina Yankova, 2016. "Professional Skepticism and Auditor Judgment: Does Trait Skepticism Mitigate the Recency Bias?," Working Papers 1623, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz, revised 2016.
    3. Christian Grund & Dirk Sliwka, 2007. "Reference-Dependent Preferences and the Impact of Wage Increases on Job Satisfaction: Theory and Evidence," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(2), pages 313-335, June.
    4. Lovric, M. & Kaymak, U. & Spronk, J., 2008. "A Conceptual Model of Investor Behavior," ERIM Report Series Research in Management ERS-2008-030-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    5. Hooi Hooi Lean & Michael McAleer & Wing-Keung Wong, 2013. "Risk-averse and Risk-seeking Investor Preferences for Oil Spot and Futures," Documentos de Trabajo del ICAE 2013-31, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico, revised Aug 2013.
    6. Chorvat, Terrence, 2006. "Taxing utility," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(1), pages 1-16, February.
    7. Grund, Christian & Sliwka, Dirk, 2001. "The Impact of Wage Increases on Job Satisfaction - Empirical Evidence and Theoretical Implications," IZA Discussion Papers 387, Institute of Labor Economics (IZA).
    8. Christian Gollier & James Hammitt & Nicolas Treich, 2013. "Risk and choice: A research saga," Journal of Risk and Uncertainty, Springer, vol. 47(2), pages 129-145, October.
    9. Hamza Bahaji, 2011. "Incentives from stock option grants: a behavioral approach," Post-Print halshs-00681607, HAL.
    10. Maciej Nowak, 2010. "Interactive Multicriteria Decision Aiding Under Risk—Methods and Applications," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 12(1), pages 69-91, October.
    11. Martin Kukuk & Stefan Winter, 2008. "An Alternative Explanation of the Favorite-Longshot Bias," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 2(2), pages 79-96, September.
    12. Barberis, Nicholas & Xiong, Wei, 2012. "Realization utility," Journal of Financial Economics, Elsevier, vol. 104(2), pages 251-271.
    13. repec:cup:judgdm:v:12:y:2017:i:1:p:81-89 is not listed on IDEAS
    14. Karagözoğlu, Emin & Keskin, Kerim, 2024. "Consideration sets and reference points in a dynamic bargaining game," Journal of Economic Behavior & Organization, Elsevier, vol. 219(C), pages 381-403.
    15. Raymond H. Chan & Ephraim Clark & Xu Guo & Wing-Keung Wong, 2020. "New development on the third-order stochastic dominance for risk-averse and risk-seeking investors with application in risk management," Risk Management, Palgrave Macmillan, vol. 22(2), pages 108-132, June.
    16. Lisa L. Posey & Vickie Bajtelsmit, 2017. "Insurance and Endogenous Bankruptcy Risk: When is it Rational to Choose Gambling, Insurance, and Potential Bankruptcy?," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 42(1), pages 15-40, March.
    17. Philip Bromiley, 2009. "A Prospect Theory Model of Resource Allocation," Decision Analysis, INFORMS, vol. 6(3), pages 124-138, September.
    18. Jakusch, Sven Thorsten, 2017. "On the applicability of maximum likelihood methods: From experimental to financial data," SAFE Working Paper Series 148, Leibniz Institute for Financial Research SAFE, revised 2017.
    19. Lean, Hooi Hooi & McAleer, Michael & Wong, Wing-Keung, 2015. "Preferences of risk-averse and risk-seeking investors for oil spot and futures before, during and after the Global Financial Crisis," International Review of Economics & Finance, Elsevier, vol. 40(C), pages 204-216.
    20. LiCalzi, Marco & Sorato, Annamaria, 2006. "The Pearson system of utility functions," European Journal of Operational Research, Elsevier, vol. 172(2), pages 560-573, July.
    21. Sadok Mansour, 2007. "Modelisation Du Risque Dans Les Methodologies D'Audit : Apport Des De La Psychometrie," Post-Print halshs-00543217, HAL.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mth:ajfa88:v:2:y:2010:i:1:p:25-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Technical Support Office (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/ajfa .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.