Capital budgeting decisions frequently go awry. We investigate whether the party gathering the data utilizes persuasive communications when presenting the information to a superior. Specifically, we analyze whether the information is framed differently depending on his or her opinion. Since...

Purpose The purpose of this study is to investigate the effects of attribute frames and justifications on capital budgeting decisions and to examine whether the requirement to provide justification for a capital budgeting decision moderates the effect of attribute frames. Methodology One-hundred...

Capital budgeting projects fail about as often as they succeed. Recent research shows that accountants may frame information related to capital budgeting projects to be consistent with their preference for the project (e.g., accept or reject), perhaps in order to persuade management to agree...