We probe the boundaries of myopic loss aversion (MLA) theory through market treatments designed to reduce the MLA effect. Our market settings separate investment commitment from information frequency, display a running average asset value and explore the influence of participant experience. The...

We use experimental economic markets to examine the impact of changing institutional design features on audit quality. Specifically, we manipulate auditors' economic accountability to managers by altering who hires the auditor – a manager or an independent third party – and auditors'...

This paper reports the results of experimental economic markets that examine whether accounting uncertainty impacts an auditor's objectivity in a setting where the auditor also has an incentive to build and maintain a reputation for objectivity. In particular, we explore if an auditor's...

We examine reporting choices, rationalizations and emotional responses when an authority figure directs participants to misreport the results of their performance for financial gain. Our research is motivated by the assertions of several individuals involved in major accounting scandals that an...