Contributing Factors of Confirmatory Information Searches and Evaluations

Abstract:     
Prior research in accounting has provided evidence that accounting professionals engage in confirmatory behaviors; that is, they conduct information searches and evaluate information in a way that tends to favor the client-preferred outcome. In this paper, instead of looking at average behavior, I look at the extent of the confirmatory (and disconfirmatory) behaviors engaged in by advisors. In addition, I also study the relationships among other factors - advisory role, perceived accountability, ease of the decision process, personal preference for a particular solution, concerns about advocacy, and concerns about accuracy - to determine how these other factors are correlated with the extent of confirmatory behaviors. I find that most advisors engage in confirmatory behaviors, but that many engage in disconfirmatory or neutral behaviors. In addition, advocacy is the most important factor affecting the extent of confirmatory information searches based on cases examined, while accuracy is the most important factor when confirmatory information searches are measured using time spent on cases. The information search itself, preference before beginning research, and accuracy concerns all have an important effect on how advisors evaluate information.

Keywords: Information search, information evaluation, confirmatory behavior, tax research

JEL Classifications: M41

Working Paper Series