Jesse F. Dillard

Sources of professional staff turnover in public accounting firms: Some further evidence

A recent article by Rhode et al. (1977) identified 39 variables associated with professional staff turnover in public accounting firms. The present study attempted to extend this prior work by examining the antecedents of the turnover act, namely those variables associated with the turnover decision. Using a valence-instrumentality-expectancy framework, measures of task outcome valence and instrumentality were evaluated with turnover expectations for a sample of 306 staff-level accountants. The findings indicated that the turnover decision was largely a function of negatively-valued task outcomes and the likelihood of obtaining these outcomes in ones current position, and the higher likelihood of obtaining certain positive outcomes in alternative positions.

A comparison of V-I-E model predictions: A cross-national study in professional accounting firms

Abstract Behavioral research in accounting has largely ignored the impact of cross-national differences. This paper deviates from that trend and reports the results of a study comparing the predictive ability of the Valence-Instrumentality-Expectancy (V-I-E) model of motivation in two cultural settings: Australia and the United States of America. Data was collected from a matched sample of 45 staff-level auditors drawn from a large public accounting firm in each of the two respective countries. The findings indicate that few differences exist between the two groups with respect to personal value structures, motivation levels, and perceptions of the work environment. The results are significant both as a systematic cross-national comparison of accounting groups and as an extension of current V-I-E research in accounting.

Evidence order and belief revision in management accounting decisions

Abstract One of the primary functions of management accounting is to provide inputs for management decisions. These inputs, or pieces of evidence, are used in making judgements about an organizations activities. We focus on situations in which an individuals degree of belief in a specific cause, or hypothesis, is sequentially revised as additional evidence is received. These types of situations are numerous in management accounting contexts (e.g. performance evaluation, variance analysis, and resource allocation). Effects of evidence order and currently held beliefs (anchors) on judgements and decisions are investigated using Hogarth & Einhorns belief-adjustment model (Order Effects in Belief Updating: The Belief-Adjustment Model, Working paper, 1990). Business students taking a management accounting course processed eight cases, four “generic” (i.e. nonaccounting) and four “management accounting”. Model predictions were supported for both groups: recency effects were present for mixed evidence; anchor size did not affect the magnitude of the recency effect; and anchor size had the predicted impact on changes in belif. For generic cases, as predicted. no order effect existed for consistent evidence. For accounting cases, some recency effects were found for consistent evidence, whereas the model predicts none. Mixed evidence order effects (i.e. recency) did not consistently impact action-oriented decisions in either generic or accounting cases. Prior research is reinterpreted in light of these findings. Implications of these findings for developing descriptive models of accounting judgements and decisions, as well as applications within management accounting contextsm are discussed.

Cognitive science and decision making research in accounting

Abstract The purpose of this paper is to discuss the relevance of cognitive science to decision-making research in accounting. First, the context into which it interfaces the field of accounting is reviewed. Next, the cognitive science applications to accounting are presented and evaluated as they relate to four levels of investigation. The paper concludes with implications for future research as well as a discussion of methodological issues which must be addressed.

The role of task analysis in understanding problem-solving behavior

We report the beginning of a research program for understanding cognitive processes required for applying financial accounting knowledge to specific problem solving situations. Task analysis which is a thorough and systematic dissection and description of the cognitive components of any task is demonstrated as a useful technique for identifying the relevant cognitive processes. After carefully describing the cognitive components of accounting using task analysis one may then specify what parts of this description are relevant to the immediate behavioral objective. These cognitive descriptions can then be used to design instructional materials or teaching strategies.

Valence-instrumentality-expectancy model validation using selected accounting groups☆

Abstract This study evaluates the predictive validity of a Valence-Instrumentality-Expectancy (VIE) model by comparing migrator and non-migrator groups found in large public accounting firms. The model variable measures are obtained from 216 current CPA firm employees. The models predictive accuracy is substantiated using discriminant analysis and a split sample validation procedure. However, the tests of the models construct validity are inconclusive. The study concludes that the VIE model contains theoretical constructs that are important determinants of CPA firm employee migration intentions and a content analysis using the model can aid in understanding and controlling employee migration. The findings are significant both as an extension of the current VIE research and an example of how the theoretical constructs can be applied to accounting problems.

Using first-order cognitive analysis to understand problem solving behavior: An example from accounting

We report a study of human problem solving in the accounting domain. This study has three characteristics. First, it is explicitly intended to aid in the development of instructional materials. Second, it uses a powerful task analyzing scheme as the basis for its conclusions. Third, we use a technique called First-Order Cognitive Analysis that combines the advantages of task analysis to overcome some of the traditional methodological problems posed to protocol analysis. Our representational scheme, KO, seems to be largely valid as a basis for reasoning about cognition, although only three subjects were studied.

Tests of expectancy theory predictions of effort: A simulation study comparing simple and complex models

Abstract The authors summarize existing studies of expectancy theories of work effort and conclude that simple additive models generally predict effort as well as, or better than, more complex multiplicative ones. An attempt is made to explain the empirical findings using a computer simulation. The results of the simulation indicate that reasonable amounts of measurement error invalidate attempts to show that one combination of valence, expectancy, and instrumentality is a better predictor of work effort than any other. The authors conclude that even though questions regarding complex interactions cannot be answered, valence, expectancy, and instrumentality, taken independently, appear to be important determinants of work effort and point out areas where future research is needed.

Implications of formal grammars for accounting policy development

Abstract The problems of accounting policy formulation are approached using the methods of formal language theory. The use of a formal grammar makes it possible to provide a clearer logical basis for the arguments for and against particular pronouncements of the FASB in three areas: possibility, consistency and resolution of accounting principles. Two examples are presented that suggest ways in which many different questions of accounting policy can be raised and answered. A linguistic framework for classifying accounting pronouncements is presented. Accounting as a formal language is evaluated together with speculation on the implications for accounting policy development.

Skill acquisition in the bookkeeping task

Skill acquisition in a domain is the acquisition of appropriate problem solving schemes, as determined by experts. This paper extends previous research in the accounting domain by investigating skill acquisition. It does so by a series of protocol analyses of a single subject as she progressed through an intermediate accounting course. These findings are compared with the behavior of a skilled subject. Our results suggest that the strategy transformation of unit-building is utilized in the bookkeeping task environment.