Knowledge transfer in project reviews: the effect of self‐justification bias and moral hazard |
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| Authors: | Mandy M. Cheng Axel K‐D Schulz Peter Booth |
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| Affiliation: | 1. Australian School of Business, University of New South Wales, Sydney, 2052, Australia;2. Department of Accounting and Finance Monash University, Caulfield East, 3145, Australia;3. Chancellery University of Technology, Sydney, Haymarket, 2001, Australia |
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| Abstract: | In this study, we examine two factors that impact managers’ willingness to share private information during the project review stage of capital budgeting. Drawing on the cognitive dissonance theory and the agency theory, we find that both high perceived personal responsibility and the use of project reviews for performance evaluation result in a greater tendency for managers to withhold negative private information. However, we do not find an interaction between these two factors. Our study makes a contribution to both the academic literature investigating factors affecting project reviews and the practitioner literature looking at design and implementation of effective project reviews. |
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| Keywords: | Project/performance reviews Knowledge transfer Management accounting behaviour research Capital investment decision M40 |
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