Usefulness of CCA Information for Investor Decision Making

A Laboratory Experiment

Keith Duncan, Ken Moores

Research output: Contribution to journalArticleResearchpeer-review

8 Citations (Scopus)

Abstract

The aim of this study was to test the assertion of New Zealand company directors that CCA information was not useful for investor decision making. Subjects made investment decisions based on their predictions concerning two similar, real (identity disguised) companies. These decisions and other evaluations were made in a post-test only, control group design experiment. CCA's relevance and reliability according to particular definitions of these characteristics was thus assessed. The results show that current cost accounts are more useful for investor decision making because they are both more relevant and perceived to be more reliable than conventional historical cost accounts.

Original languageEnglish
Pages (from-to)121-132
Number of pages12
JournalAccounting and Business Research
Volume18
Issue number70
DOIs
Publication statusPublished - 1 Jan 1988

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Investor decision making
Laboratory experiments
Usefulness
Evaluation
Investment decision
Prediction
Costs
Experiment design
Historical cost
New Zealand

Cite this

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Usefulness of CCA Information for Investor Decision Making : A Laboratory Experiment. / Duncan, Keith; Moores, Ken.

In: Accounting and Business Research, Vol. 18, No. 70, 01.01.1988, p. 121-132.

Research output: Contribution to journalArticleResearchpeer-review

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AB - The aim of this study was to test the assertion of New Zealand company directors that CCA information was not useful for investor decision making. Subjects made investment decisions based on their predictions concerning two similar, real (identity disguised) companies. These decisions and other evaluations were made in a post-test only, control group design experiment. CCA's relevance and reliability according to particular definitions of these characteristics was thus assessed. The results show that current cost accounts are more useful for investor decision making because they are both more relevant and perceived to be more reliable than conventional historical cost accounts.

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JF - Accounting and Business Research

SN - 0001-4788

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