The Effects of Accounting Information on Individuals' Perceptual Processes

Abstract

This research focuses on the influence of decision makers' perceptual processes on their decision choices when they are presented with financial accounting information. A conceptual model which depicted perceptual and judgmental processes was used to capture individuals' decision-making processes. A covariance structural model of the processes graduate students used to reach loan decisions was examined through measures designed to test the proposed conceptual model. Also, a multigroup analysis was used to compare whether individuals with a more data-driven perceptual approach would differ from those with a more conceptually driven perceptual approach when making loan decisions. The results indicated that their approaches caused different loan assessments of financial accounting information. The results also indicated that data-driven types outperformed the conceptually driven types. The relative usefulness of the conceptual model was discussed, and general suggestions for future research on perceptual processes and goal attainment were offered.