A1 Refereed original research article in a scientific journal
Two minds of credit professionals: accrual vs. cash accounting information
Authors: Seppänen Harri, Teinilä Timo
Publisher: Inderscience
Publication year: 2022
Journal: International Journal of Managerial and Financial Accounting
Journal name in source: INTERNATIONAL JOURNAL OF MANAGERIAL AND FINANCIAL ACCOUNTING
Journal acronym: INT J MANAG FINANC A
Volume: 14
Issue: 1
First page : 56
Last page: 83
Number of pages: 28
ISSN: 1753-6715
eISSN: 1753-6723
DOI: https://doi.org/10.1504/IJMFA.2022.120933
Web address : https://www.inderscienceonline.com/doi/abs/10.1504/IJMFA.2022.120933
Self-archived copy’s web address: https://research.aalto.fi/files/99413690/Seppanen_Teinila_2022_IJMFA_aalto_2023.pdf
Abstract
To explore in what ways and what elements of financial statement information is important for credit practitioners, we employ a survey method to obtain new evidence. We ask if there is evidence on the existence of two different types of views to accounting information, namely accrual accounting and cash accounting emphasis. The two views come out robustly throughout our analysis, and they are consistently linked both to credit professional's experience, and task complexity. We infer our evidence to be consistent with the explanations for co-existence of differential information preferences advanced in behavioural accounting literature related to individuals' cognitive constraints in use of accounting information. We discuss the implications of our results for credit professionals, accounting standard setters and researchers.
To explore in what ways and what elements of financial statement information is important for credit practitioners, we employ a survey method to obtain new evidence. We ask if there is evidence on the existence of two different types of views to accounting information, namely accrual accounting and cash accounting emphasis. The two views come out robustly throughout our analysis, and they are consistently linked both to credit professional's experience, and task complexity. We infer our evidence to be consistent with the explanations for co-existence of differential information preferences advanced in behavioural accounting literature related to individuals' cognitive constraints in use of accounting information. We discuss the implications of our results for credit professionals, accounting standard setters and researchers.
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