Knowledge Transfer in Project Reviews: The Effect of Self-Justification Bias and Moral Hazard
Mandy M. Cheng
University of New South Wales (UNSW) - School of Accounting
Axel K-D Schulz
University of Melbourne - Faculty of Business and Economics
University of Technology, Sydney (UTS) - School of Accounting
Accounting & Finance, Vol. 49, No. 1, pp. 75-93, March 2009
In this study, we examine two factors that impact managers willingness to share private information during the project review stage of capital budgeting. Drawing on the cognitive dissonance theory and the agency theory, we find that both high perceived personal responsibility and the use of project reviews for performance evaluation result in a greater tendency for managers to withhold negative private information. However, we do not find an interaction between these two factors. Our study makes a contribution to both the academic literature investigating factors affecting project reviews and the practitioner literature looking at design and implementation of effective project reviews.
Number of Pages in PDF File: 19
JEL Classification: G31, G34, D82, M40, M46Accepted Paper Series
Date posted: January 31, 2009
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