publication . Article . 2013

THE NUMERICAL COGNITION BIAS AND ITS CONSEQUENCES ON ACCOUNTING DECISIONS

Marcelino, Carolina Venturini; Bruni, Adriano Leal;
Open Access Portuguese
  • Published: 04 Feb 2013
  • Publisher: Portal de Periódicos Eletrônicos da UFRN
Abstract
This theoretical essay is dedicated to the further study of numerical cognition and discussion of the presence of bias arising from it within the accounting environment. Accounting provides information to ensure decision-making which is likely to be influenced by shortcuts or cognitive biases. Decisions are made faster and not necessarily more correct. Research in management accounting has traditionally been influenced by neoclassical economics theory, whose main assumption is economic rationality. Cognitive theory emerges as a counterpoint to the rationalist conception of action by showing that humans make use of heuristics in order to make a decision. Although...
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