Description
Concerns have long been voiced that taking account of expected financial outcomes early in the product development process inhibits the recognition and appreciation of creative product ideas. We look at a common situation in product development processes and propose that beyond the economic value of the financial information, social concerns influence the extent to which evaluators rely on incomplete (short-term) financial forecasts. Holding the economic value of the information constant, we argue and find in three experiments that concerns about whether other people endorse, accept or sanction their judgment behavior induce evaluators to rely more heavily on incomplete financial information than they would do in a situation where such social approval concerns do not play a role. Our study extends prior research on creativity assessments and on individuals’ use of accounting information for legitimizing their judgment and decision-making behavior to others. The evidence we provide on the importance of information distribution, need for justification, and source credibility offers new insights on how organizations can influence the social use of accounting information.
| Period | 6 Aug 2022 |
|---|---|
| Event title | AOM Annual Meeting 2022: Creating A Better World Together |
| Event type | Conference |
| Location | Seattle, United States, WashingtonShow on map |