Assuring Information Relevance: The Effects of Management Accounting Experience and Problem Information Content

38 Pages Posted: 22 Aug 1999

See all articles by Sandra C. Vera-Munoz

Sandra C. Vera-Munoz

University of Notre Dame - Department of Accountancy

William R. Kinney, Jr.

University of Texas at Austin - Department of Accounting

Date Written: July 15, 1999

Abstract

As information advisors, Certified Public Accountants (CPAs) can be viewed as information quality assurers who independently improve the relevance of information for decision-makers. Relevance improvement advice may depend on the advisor's background as well as the problem information content of the initial decision problem presentation. This study reports results of an experiment in which accountants with various levels of management accounting experience received materials with problem information content based on either historical net income or historical cash flow data. Results indicate that relative managerial accounting experience significantly increases experienced accountants' tendencies to incorporate decision-relevant opportunity cost information in their recommendations. Furthermore, problem information content significantly affects accountants' choice of method for analyzing information for a decision which, in turn, affects their selection of relevant information as the basis for their recommendations.

JEL Classification: M40, M46, C91

Suggested Citation

Vera-Munoz, Sandra C. and Kinney, William, Assuring Information Relevance: The Effects of Management Accounting Experience and Problem Information Content (July 15, 1999). Available at SSRN: https://ssrn.com/abstract=172370 or http://dx.doi.org/10.2139/ssrn.172370

Sandra C. Vera-Munoz (Contact Author)

University of Notre Dame - Department of Accountancy ( email )

248 Mendoza College of Business
Notre Dame, IN 46556-5646
United States
574-631-9041 (Phone)
574-631-5255 (Fax)

William Kinney

University of Texas at Austin - Department of Accounting ( email )

Austin, TX 78712
United States
512-471-3632 (Phone)
512-471-3904 (Fax)

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