Accounting estimates are developed in a bottom-up fashion; subordinates generate estimates that are reviewed by managers. The anchoring heuristic suggests managers may be highly influenced by subordinates’ initial estimates. However, motivated reasoning theory predicts that reporting incentives will bias managers’ review in favor of estimates that are incentive consistent, and managers will selectively attend to information that supports their preferred conclusion, including their perceptions of the subordinate.
Download count: 0
- Partial requirement for: Ph.D., Arizona State University, 2016Note typethesis
- Includes bibliographical references (pages 28-32)Note typebibliography
- Field of study: Accountancy