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An Analysis of the Influences of Individual Optimism, Risk Taking and Self-Confidence on Professional Accounting Judgment

Author

Listed:
  • Victoria Bogdan
  • Ioana Teodora MeSter
  • Dana Gherai
  • Carmen Mihaela Scorte

    (University of Oradea, Romania)

Abstract

Chaotic dynamics of today’s global business environment exert a tremendous pressure on professionals accounting judgment performance. A survey was mailed to Romanian professional accountants to examine their perception on accounting judgments and decisions. The results based on 531 valid responses indicate that professionals considered that a judgment in accounting is influenced by the responsibility of the accountant in preparing the financial statements according to the regulatory financial reporting framework. Also, they think that an adequate accounting judgment is best characterized by: "logical, consistent and substantiated", characteristics. Exploring statistical differences between accountants, grouped by age, gender, as well as years of practice, we found that younger investigated accountants are more optimistic that the ones over 45. We have used Chi-Square test and Pearson’s correlation coefficient and showed that there is a correlation between accountants’ propensity towards optimism and their perception regarding the need of a theoretical framework of JDM, and between accountants’ propensity towards risk and their choice regarding the aspects that influence accounting judgment. Also, accountants’ self-confidence is in direct correlation with their opinion regarding the aspects that influence JDM in accounting, but there is no statistical correlation between accountants’ propensity towards optimism and their choice regarding the aspects that influence accounting judgment. Our results showed that is on interest to further investigate these correlations to identify new ways to improve JDM in accounting. The role of professional accountant is shaped by the pressure of several external factors that also mark their behavior, hence, accountants are not robots, are humans.

Suggested Citation

  • Victoria Bogdan & Ioana Teodora MeSter & Dana Gherai & Carmen Mihaela Scorte, 2017. "An Analysis of the Influences of Individual Optimism, Risk Taking and Self-Confidence on Professional Accounting Judgment," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 16(3), pages 320-343, September.
    • Handle: RePEc:ami:journl:v:16:y:2017:i:3:p:320-343
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    Citations

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    Cited by:

    1. Aren Selim & Hamamci Hatice Nayman, 2023. "Mediating Effect of Pleasure-Seeking and Loss Aversion in the Relationship Between Phantasy and Financial Risk Tolerance and the Moderating Role of Confidence," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 24-44, December.
    2. Victoria Bogdan & Delia Deliu & Tomina Săveanu & Olimpia Iuliana Ban & Dorina Nicoleta Popa, 2020. "Roll the Dice—Let’s See If Differences Really Matter! Accounting Judgments and Sustainable Decisions in the Light of a Gender and Age Analysis," Sustainability, MDPI, vol. 12(18), pages 1-31, September.

    More about this item

    Keywords

    professional accountants; judgment and decision making; optimism; risk taking; self-confidence;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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