The Ties That Bind: A Systematic Review of Behavioral Research on Social Bonds and Social Ties in Accounting

Abstract

ABSTRACT We provide a comprehensive review and synthesis of behavioral accounting research on social bonds and social ties. Social bonds represent a person’s subjective sense of interpersonal closeness or connectedness with another, whereas social ties are the relationship networks that connect individuals with one another. We identify 75 articles published in leading accounting journals relevant to our review. The primary contexts examined by prior research that give rise to these social connections include auditors’ identification with their clients, team member identification, and social network ties between client executives, board members, and their various external stakeholders. We structure our synthesis around the antecedents, moderators, and outcomes of these social connections. Cumulatively, our synthesis findings reveal a rich, complex setting where social bonds can sometimes benefit financial reporting and audit quality by promoting proactive knowledge sharing and sometimes harm the financial reporting process by prompting undue favoritism and increased acquiescence. Data Availability: All data used in this project are available through the Google Scholar database. JEL Classifications: M40; M41; M42.