Recognition versus Disclosure of Future Loss Conditions and the Decision-Usefulness of Financial Statements

2020 ◽  
Vol 95 (5) ◽  
pp. 247-264
Author(s):  
Alexis H. Kunz ◽  
Martin Staehle
Keyword(s):  
Cognitive Processes ◽  
Differential Effect ◽  
Financial Statements ◽  
Past Performance ◽  
Decision Usefulness ◽  
Economic Fundamentals ◽  
Future Loss ◽  
Earnings Trends ◽  
Insight Into ◽  
Forward Looking

ABSTRACT We conduct an experiment to investigate the differential effect of recognizing versus disclosing reasonable and supportable forecasts of future loss conditions on investors' valuation assessments when economic fundamentals either deteriorate or improve. Our main finding is that when entities enjoy growth at constant risk, the accelerated recognition of future loss conditions can induce valuation assessments that are opposed to the entity's enhanced valuation. Supplementary analyses reveal that investors misattribute (some) expected losses to the entity's past performance and rely on unadjusted current summary earnings to assess the entity's prospects. Our findings provide insight into the cognitive processes that lead investors to incorrectly assess earnings trends and inform regulators, standard setters, investors, and preparers that the accelerated recognition of relevant and unbiased forward-looking loss estimates can impair the decision-usefulness of financial statements.

An Investigation Of The Effect Of Reporting Changes Proposed By The AICPA On Lending Decisions

2011 ◽  
Vol 13 (2) ◽  
pp. 47 ◽  
Author(s):  
Linda M. Nichols
Keyword(s):  
Financial Statements ◽  
Relevant Information ◽  
Financial Statement ◽  
Special Committee ◽  
Decision Usefulness ◽  
Proposed Model ◽  
Lending Decisions ◽  
Core Activity ◽  
Forward Looking ◽  
Segment Information

<span>In 1994, a Special Committee of the AICPA proposed to expand and reorganize financial statements. The main differences between the proposed model and current GAAP include increased segment information, a separation of core and non-core activities, and inclusion of more forward-looking information. This study examines the effect of the proposed changes on lending decisions made by bankers. The results indicate that the separation of financial statement data into core and no-core activities provides relevant information in making lending decisions. Combining core activity separation with expanded segment information further increases the decision usefulness of the statements.</span>

scholarly journals To sext or not to sext. The role of social-cognitive processes in the decision to engage in sexting

2021 ◽  
Vol 38 (4) ◽  
pp. 1410-1429
Author(s):  
Claire Wilson ◽  
Tommy van Steen ◽  
Christabel Akinyode ◽  
Zara P. Brodie ◽  
Graham G. Scott
Keyword(s):  
Cognitive Processes ◽  
Self Efficacy ◽  
Social Cognitive ◽  
Cognitive Factors ◽  
Relationship Status ◽  
Injunctive Norm ◽  
The Social ◽  
And Behavior ◽  
Insight Into

Technology has given rise to online behaviors such as sexting. It is important that we examine predictors of such behavior in order to understand who is more likely to sext and thus inform intervention aimed at sexting awareness. We used the Theory of Planned Behavior (TPB) to examine sexting beliefs and behavior. Participants (n = 418; 70.3% women) completed questionnaires assessing attitudes (instrumental and affective), subjective norms (injunctive and descriptive), control perceptions (self-efficacy and controllability) and intentions toward sexting. Specific sexting beliefs (fun/carefree beliefs, perceived risks and relational expectations) were also measured and sexting behavior reported. Relationship status, instrumental attitude, injunctive norm, descriptive norm and self-efficacy were associated with sexting intentions. Relationship status, intentions and self-efficacy related to sexting behavior. Results provide insight into the social-cognitive factors related to individuals’ sexting behavior and bring us closer to understanding what beliefs predict the behavior.

scholarly journals An earlier role for intent in children’s partner choice versus punishment

2020 ◽  
Author(s):  
Justin Martin ◽  
Kyleigh Leddy ◽  
Liane Young ◽  
Katherine McAuliffe
Keyword(s):  
Young Children ◽  
Moral Judgment ◽  
Cognitive Processes ◽  
Developmental Trajectories ◽  
Partner Choice ◽  
Moral Judgments ◽  
Equal Weight ◽  
Behavioral Differences ◽  
The Many ◽  
Insight Into

Among the many factors that influence our moral judgments, two are especially important: whether the person caused a bad outcome and whether they intended for it to happen. Notably, the weight accorded to these factors in adulthood varies by the type of judgment being made. For punishment decisions, intentions and outcomes carry relatively equal weight; for partner choice decisions (i.e., deciding whether or not to interact with someone again), intentions are weighted much more heavily. These behavioral differences in punishment and partner choice judgments may also reflect more fundamental differences in the cognitive processes supporting these decisions. Exploring how punishment and partner choice emerge in development provides important and unique insight into these processes as they emerge and mature. Here, we explore the developmental emergence of punishment and partner choice decisions in 4- to 9-year-old children. Given the importance of intentions for partner choice decisions¬–from both theoretical and empirical perspectives–we targeted the sensitivity of these two responses to others’ intentions as well as outcomes caused. Our punishment results replicate past work: young children are more focused on outcomes caused and become increasingly sensitive to intentions with age. In contrast, partner choice judgments exhibit sensitivity to intentions at an earlier age than punishment judgments, manifesting as earlier partner choice in cases of attempted violations. These results reveal distinct developmental trajectories for punishment and partner choice judgments, with implications for our understanding of the processes underlying these two responses as well as the development of moral judgment more broadly.

UNDERSTANDING BLOGGERS POSTING ABOUT POP CULTURE: LINGUAPRAGMATICS OF «UNPOPULAR OPINION» IN THE ENGLISH INTERNET-DISCOURSE

2021 ◽  
Author(s):  
A.V. Kukovskaya
Keyword(s):  
Discourse Analysis ◽  
Cognitive Processes ◽  
Pop Culture ◽  
Computer Mediated ◽  
The Subject ◽  
The Given ◽  
Insight Into ◽  
Blog Posts ◽  
Subcultural Community

The paper explores communication within the English blogosphere in which the discourse manifests itself in blog posts, devoted, in particular, to reactions to a variety of pop-culture works. These posts are characterized by specific linguapragmatics. The article examines the language and the discourse of bloggers from the standpoint of the Linguistic Creativity approach, which may help to have an in-depth insight into the mechanisms of cognitive processes. The topicality of this topic is justified by the interest that modern linguists have in text studies, discourse analysis and computer-mediated Internet-discourse. The novelty of the article lies in the fact that the given discourse and the linguapragmatics of the posts in question in the English blogosphere have not so far received the attention they deserve and should be the subject of more research and analysis. The paper supplies relevant conclusions made on the basis of the empiric material. The research demonstrates that within the English Internet-discourse of bloggers, who interpret modern pop culture and can be considered a subcultural community, among other types of posts there can be singled out the so-called “unpopular opinion”, that boasts a number of linguapragmatic peculiarities coinciding with the communicative goals of bloggers. Decoding such posts may be a challenge and we, among other things, want to draw researchers’ attention to the “language of bloggers” and its study.

scholarly journals The “man-technology-environment” system in the management of transport service of construction industry

2018 ◽  
Vol 193 ◽  
pp. 01008 ◽  
Author(s):  
Ruben Kazarian
Keyword(s):  
Construction Industry ◽  
Transport Infrastructure ◽  
Visual Modeling ◽  
Emergency Situations ◽  
Economic Fundamentals ◽  
The Us ◽  
Modern Economic ◽  
Object Of Study ◽  
Insight Into ◽  
Protection Of Life

In all countries, transport is considered as the basis for ensuring economic, social, military, environmental and other types of national security. It is provided more than 200 billion dollars in the US, about 200 billion dollars in Japan, more than 100 billion euros in Germany on the development of transport system. In Russia, for these purposes, is spent 14-15 times less. The purpose of environmental security's transportation ensuring - protection of life and health of people, the environment, cargo and vehicles, the sustainability of transport communications and transport infrastructure in normal conditions, in emergency situations and in wartime. Man, in the process of knowing the surrounding material world, forms “speculative” (ideal) ideas about how this world is arranged and how it functions. The basis of such knowledge is intuitive or conscious modeling. The initial level of visual modeling is the multipoint representation of the object of study, so: any phenomenon, object, process, object, definition, and other elements of the conceptual layer of consciousness are put in correspondence with the “point”. The further procedure of visual modeling involves the identification of all the points involved and the interrelations between them (the “logician”), this procedure will provide insight into infographic models of anthropotechnology management in the conditions of modern economic fundamentals and trends in the development of a market economy for the application of anthropotechnical management infographic models. Certification of manual labor's mechanization and transportation of construction cargo and structures (СMIT) - is one of the important construction service packages.

Macroeconomic Uncertainty and Management Earnings Forecasts

2015 ◽  
Vol 30 (1) ◽  
pp. 157-172 ◽  
Author(s):  
Kyonghee Kim ◽  
Shailendra (Shail) Pandit ◽  
Charles E. Wasley
Keyword(s):  
Earnings Forecasts ◽  
Bad News ◽  
Management Earnings Forecasts ◽  
Issue Management ◽  
Regulatory Changes ◽  
Volatility Index ◽  
Sarbanes Oxley ◽  
Macroeconomic Uncertainty ◽  
Insight Into ◽  
Forward Looking

SYNOPSIS To provide evidence on the role macroeconomic uncertainty plays in managers' decision to issue management earnings forecasts (MFs), this study develops and tests hypotheses about how such uncertainty affects the issuance and characteristics of MFs. Macroeconomic uncertainty is measured using the dispersion in GDP forecasts and the CBOE's Volatility Index (VIX). We find that during periods of high macroeconomic uncertainty there is a decrease in the likelihood of MF issuance, consistent with managers assigning a higher cost to releasing forward-looking information as macroeconomic uncertainty increases. We also find that managers issue fewer good and bad news MFs, but more neutral MFs, during periods of high macroeconomic uncertainty. Macroeconomic uncertainty also affects the characteristics of the MFs that managers do issue; for example, managers shift to more earnings preannouncements and to shorter-horizon, but more precise, MFs. Further analysis indicates that the regulatory changes imbedded in the Sarbanes-Oxley Act increased the costs of providing MFs, thereby increasing the sensitivity of MF issuance to macroeconomic uncertainty. The findings provide insight into the role macroeconomic uncertainty plays in managers' decision to issue MFs and the characteristics of the MFs they choose to issue.

scholarly journals Behavioral Interpretations of Intrinsic Connectivity Networks

2011 ◽  
Vol 23 (12) ◽  
pp. 4022-4037 ◽  
Author(s):  
Angela R. Laird ◽  
P. Mickle Fox ◽  
Simon B. Eickhoff ◽  
Jessica A. Turner ◽  
Kimberly L. Ray ◽  
...  
Keyword(s):  
Cognitive Processes ◽  
Resting State ◽  
Brain Networks ◽  
Data Driven ◽  
Resting State Networks ◽  
Independent State ◽  
Intrinsic Connectivity ◽  
Mental Operations ◽  
Intrinsic Connectivity Networks ◽  
Insight Into

An increasingly large number of neuroimaging studies have investigated functionally connected networks during rest, providing insight into human brain architecture. Assessment of the functional qualities of resting state networks has been limited by the task-independent state, which results in an inability to relate these networks to specific mental functions. However, it was recently demonstrated that similar brain networks can be extracted from resting state data and data extracted from thousands of task-based neuroimaging experiments archived in the BrainMap database. Here, we present a full functional explication of these intrinsic connectivity networks at a standard low order decomposition using a neuroinformatics approach based on the BrainMap behavioral taxonomy as well as a stratified, data-driven ordering of cognitive processes. Our results serve as a resource for functional interpretations of brain networks in resting state studies and future investigations into mental operations and the tasks that drive them.

scholarly journals DECISION USEFULNESS: DALAM PENGAMBILAN KEPUTUSAN DAN INVESTASI

2013 ◽  
Vol 3 (1) ◽  
Author(s):  
Ahmad Fahrudin A
Keyword(s):  
Decision Theory ◽  
Financial Reporting ◽  
Financial Statements ◽  
Financial Report ◽  
Decision Usefulness

<p>This paper discusses the financial report based on historical prices. Using historical price makes it useful even today emerged another method. To quickly understand this concept, we need to consider other theories of the economics and finance. As an accountant, you can not begin to make financial statements more useful to us to know what is meant by usefulness. We also need a proper description of the information. Decision theory and the theory of investment helps in understanding the concepts of financial reporting information.</p> <p> </p>

scholarly journals Tertiary Level Learners’ Listening Self Knowledge in an “Input Poor” EFL Context of Bangladesh

BELTA Journal ◽  
2020 ◽  
Vol 4 (1) ◽  
pp. 1-19
Author(s):  
Tasnima Aktar
Keyword(s):  
Cognitive Processes ◽  
Thematic Analysis ◽  
Metacognitive Knowledge ◽  
Self Concept ◽  
Tertiary Level ◽  
Structured Interviews ◽  
Efl Context ◽  
L2 Learning ◽  
Self Knowledge ◽  
Insight Into

Metacognitive knowledge can influence L2 learning and listening; however, little is known about learners’ listening self knowledge, particularly in the EFL context of Bangladesh. The current study is a part of the author’s PhD project (Cite, 0000) that aimed to understand tertiary level EFL listeners’ listening self knowledge in Bangladesh. Semi-structured interviews were conducted with 30 participants on their metacognitive knowledge. There were 15 less successful listeners (LSMs) and 15 more successful listeners (MSLs). The thematic analysis of their listening self knowledge revealed students’ awareness of six aspects of listening self knowledge. Although their overall awareness in terms of frequency of mentions showed no considerable differences between the groups, variances have been observed in particular areas. The LSLs frequently mentioned listening problems and obstacles whereas the MSLs were more aware of the cognitive processes and showed greater motivation and exposure. A huge difference was revealed in self-concept: the LSLs’ negative self-concept differed from the positive self-concept of their counterparts. Insight into listeners’ listening self knowledge has several pedagogical implications.

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