Discrete choice experiments: a research agenda for experimental accounting
- 10 April 2017
- journal article
- e conceptual-paper
- Published by Emerald in Meditari Accountancy Research
- Vol. 25 (1), 158-182
- https://doi.org/10.1108/medar-07-2016-0068
Abstract
Purpose This paper aims to introduce and illustrate how discrete choice experiments (DCEs) can be used by accounting researchers and present an agenda of accounting-related research topics that might usefully benefit from the adoption of DCEs. Design/methodology/approach Each major phase involved in conducting a DCE is illustrated using a capital budgeting case study. The research agenda is based on a review of experimental research in financial accounting, management accounting and auditing. Findings DCEs can overcome some of the problems associated with asking decision-makers to rank or rate alternatives. Instead, they ask decision-makers to choose an alternative from a set. DCEs arguably better reflect the realities of real-world decision-making because decision-makers need to make trade-offs between all of the alternatives relevant to a decision. An important advantage that DCEs offer is their ability to calculate willingness-to-pay estimates, which can enable the valuation of non-market goods. Several streams of experimental accounting research would appear well-suited to investigation with DCEs. Research limitations/implications While every effort has been made to ensure that this illustration is as generic to as the many potential studies as possible, it may be that researchers seeking to utilise a DCE need to refer to additional literary sources. This study, however, should serve as a useful starting point. Practical implications Accounting researchers are expected to benefit from reading this article by being: made aware of the DCE method and its advantages; shown how to conduct a DCE; and provided with an agenda of accounting-related research topics that might usefully benefit from application of the DCE methodology. Originality/value It is the authors’ understanding that this is the first article directed to accounting academics regarding the conduct of DCEs for accounting research. It is hoped that this study can provide a useful platform for accounting academics to launch further research adopting DCEs.Keywords
This publication has 74 references indexed in Scilit:
- Accountability and auditors’ materiality judgments: The effects of differential pressure strength on conservatism, variability, and effortAccounting, Organizations and Society, 2006
- Quick and easy choice sets: Constructing optimal and nearly optimal stated choice experimentsInternational Journal of Research in Marketing, 2005
- Forecasting new product penetration with flexible substitution patternsJournal of Econometrics, 1998
- The use of accounting information in bank lending decisionsAccounting, Organizations and Society, 1989
- The impact of current-valued data on the predictive judgments of investorsAccounting, Organizations and Society, 1988
- Specifying and testing econometric models for rank-ordered dataJournal of Econometrics, 1987
- The impact of socio-economic accounting statements on the investment decision: An empirical studyAccounting, Organizations and Society, 1980
- Accounting aggregation: User preferences and decision makingAccounting, Organizations and Society, 1979
- The effects of behavioural indicators on investor decisions: An exploratory studyAccounting, Organizations and Society, 1976
- The impact of human resource valuation on management decisions: A laboratory experimentAccounting, Organizations and Society, 1976