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The Effect Of Sunk Cost, Framing Effect, And Educational Background On The Escalation Of Commitment

Author

Listed:
  • Astria Wulan Permatasari
  • Laeli Budiarti
  • Kiky Srirejeki

    (Department of Accounting, Universitas Indonesia, Jakarta, Indonesia
    Department of Accounting, Universitas Jenderal Soedirman, Purwokerto, Indonesia
    Department of Accounting, Universitas Jenderal Soedirman, Purwokerto, Indonesia)

Abstract

The purpose of this study is to examine whether negative framing and sunk costs affecting the escalation of commitments with an educational background as moderating variable. The study uses an experimental study approach with 2 x 2 x 2 within-subjects design. There were 39 managers from a state-owned enterprise who participated in this experiment. The result indicates that sunk costs and negative framing effect the escalation of commitment. In contrast, the educational background did not moderate the relationship between sunk cost and negative framing to the escalation of commitment.

Suggested Citation

  • Astria Wulan Permatasari & Laeli Budiarti & Kiky Srirejeki, 2020. "The Effect Of Sunk Cost, Framing Effect, And Educational Background On The Escalation Of Commitment," Journal of Contemporary Accounting, Master in Accounting Program, Faculty of Business & Economics, Universitas Islam Indonesia, Yogyakarta, Indonesia, vol. 2(1), pages 49-61, May.
    • Handle: RePEc:uii:jcauii:v:2:y:2020:i:1:p:49-61
    DOI: 10.20885/jca.vol2.iss1.art5
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    References listed on IDEAS

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    More about this item

    Keywords

    Escalation of commitment; framing effect; sunk cost; educational background; prospect theory.;
    All these keywords.

    JEL classification:

    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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