Reciprocity is reported in simple experiments even in the absence of reputation or the ability to sanction. This paper reports the results of an experiment (one-shot investment game) designed to shed light on the underlying forces that drive reciprocal behavior. We contend that reciprocity...

Purpose: This paper examines the impact that fair-value recognition of non-financial assets has on the judgments of commercial lenders. Design/methodology/approach: Commercial lenders, who were attending a national banking conference, participated in a controlled experiment. Findings: The...

Purpose The purpose of this paper is to examine investors’ propensity to litigate when harmful events occur subsequent to accounting choices. Consistent with Culpable Control Theory, the authors find that investors are more likely to pursue litigation against management when managers are...