Belief Revision in Accounting: A Literature Review of the Belief-Adjustment Model

Advances in Accounting Behavioral Research, Vol. 8, 2005

Posted: 22 Jun 2007

See all articles by Jennifer Kahle Schafer

Jennifer Kahle Schafer

Kennesaw State University - Michael J. Coles College of Business; Kennesaw State University - School of Accountancy

Robin Pennington

University of Tennessee, Knoxville - College of Business Administration

Robert E. Pinsker

Florida Atlantic University

Abstract

The belief-adjustment model has been an integral part of accounting research in belief revision, especially in the examination of order effects. Hogarth and Einhorn ((1992) Cognitive Psychology, 24, 1-55) created the belief-adjustment model to serve as a theoretical framework for studying individuals' decision-making processes. The model examines several aspects of decision-making, such as encoding, response mode, and task factors. The purpose of this chapter is to provide a comprehensive examination of the accounting studies that have used the theoretical framework of the belief-adjustment model in auditing, tax, and financial accounting contexts. Roberts' ((1998) Journal of the American Taxation Association, 20, 78-121) model of tax accountants' decision-making is used as a guideline to organize the research into categories. By using Roberts' categorization, we can better sort out the mixed results of some prior studies and also expand the review to include a more comprehensive look at the model and its application to accounting. While many variables have been examined with respect to their effect on accounting professionals' belief revisions, most studies examine them in isolation and do not consider the interaction effects that these variables may have. Our framework also identifies areas of the belief-adjustment model that need further research.

Keywords: belief revision, belief adjustment model, anchoring, order effects

JEL Classification: M4

Suggested Citation

Schafer, Jennifer Kahle and Pennington, Robin and Pinsker, Robert E., Belief Revision in Accounting: A Literature Review of the Belief-Adjustment Model. Advances in Accounting Behavioral Research, Vol. 8, 2005, Available at SSRN: https://ssrn.com/abstract=993941

Jennifer Kahle Schafer (Contact Author)

Kennesaw State University - Michael J. Coles College of Business ( email )

1000 Chastain Road
Kennesaw, GA 30144
United States

Kennesaw State University - School of Accountancy ( email )

1000 Chastain Rd., MD 0402
Kennesaw, GA 30144-5591
United States

Robin Pennington

University of Tennessee, Knoxville - College of Business Administration ( email )

620 Stokely Management Center
916 Volunteer Blvd.
Knoxville, TN 37996
United States
865-974-1764 (Phone)
865-974-4631 (Fax)

Robert E. Pinsker

Florida Atlantic University ( email )

Boca Raton, FL 33431
United States

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