Effect of concession-timing strategies in auditor-client negotiations: it matters who is using them
In this study, we examine how norms about the use of negotiation strategies by different parties in an auditor–client negotiation influence the relative efficacies of these negotiation strategies. We conduct an experiment with experienced auditors/financial managers as participants, who enter into a...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2015
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| Online Access: | https://hdl.handle.net/10356/105203 http://hdl.handle.net/10220/25978 |
| _version_ | 1811693497043910656 |
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| author | Sun, Yan Tan, Hun-Tong Zhang, Jixun |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Sun, Yan Tan, Hun-Tong Zhang, Jixun |
| author_sort | Sun, Yan |
| collection | NTU |
| description | In this study, we examine how norms about the use of negotiation strategies by different parties in an auditor–client negotiation influence the relative efficacies of these negotiation strategies. We conduct an experiment with experienced auditors/financial managers as participants, who enter into a negotiation on an income-decreasing audit adjustment with a hypothetical client/auditor who uses a strategy where the same concessions are given either at the start, gradually, or the end of the negotiation. We find that the concession-end strategy is more effective than the concession-start strategy when used by auditors; however, the reverse is true when these same strategies are used by financial managers. The concession-gradual strategy leads to superior outcomes when used by either auditors or clients. We also provide evidence that auditors’ and financial managers’ perceptions of the norms relating to the use of these strategies correspond to what we propose in our theory. |
| first_indexed | 2024-10-01T06:52:37Z |
| format | Journal Article |
| id | ntu-10356/105203 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T06:52:37Z |
| publishDate | 2015 |
| record_format | dspace |
| spelling | ntu-10356/1052032023-05-19T06:44:43Z Effect of concession-timing strategies in auditor-client negotiations: it matters who is using them Sun, Yan Tan, Hun-Tong Zhang, Jixun Nanyang Business School DRNTU::Business::Accounting In this study, we examine how norms about the use of negotiation strategies by different parties in an auditor–client negotiation influence the relative efficacies of these negotiation strategies. We conduct an experiment with experienced auditors/financial managers as participants, who enter into a negotiation on an income-decreasing audit adjustment with a hypothetical client/auditor who uses a strategy where the same concessions are given either at the start, gradually, or the end of the negotiation. We find that the concession-end strategy is more effective than the concession-start strategy when used by auditors; however, the reverse is true when these same strategies are used by financial managers. The concession-gradual strategy leads to superior outcomes when used by either auditors or clients. We also provide evidence that auditors’ and financial managers’ perceptions of the norms relating to the use of these strategies correspond to what we propose in our theory. 2015-06-18T07:14:02Z 2019-12-06T21:47:28Z 2015-06-18T07:14:02Z 2019-12-06T21:47:28Z 2015 2015 Journal Article Sun, Y., Tan, H.-T., & Zhang, J. (2015). Effect of concession-timing strategies in auditor-client negotiations: it matters who is using them. Contemporary accounting research, 32(4), 1489-1506. 0823-9150 https://hdl.handle.net/10356/105203 http://hdl.handle.net/10220/25978 10.1111/1911-3846.12139 en Contemporary accounting research © 2015 CAAA. |
| spellingShingle | DRNTU::Business::Accounting Sun, Yan Tan, Hun-Tong Zhang, Jixun Effect of concession-timing strategies in auditor-client negotiations: it matters who is using them |
| title | Effect of concession-timing strategies in auditor-client negotiations: it matters who is using them |
| title_full | Effect of concession-timing strategies in auditor-client negotiations: it matters who is using them |
| title_fullStr | Effect of concession-timing strategies in auditor-client negotiations: it matters who is using them |
| title_full_unstemmed | Effect of concession-timing strategies in auditor-client negotiations: it matters who is using them |
| title_short | Effect of concession-timing strategies in auditor-client negotiations: it matters who is using them |
| title_sort | effect of concession timing strategies in auditor client negotiations it matters who is using them |
| topic | DRNTU::Business::Accounting |
| url | https://hdl.handle.net/10356/105203 http://hdl.handle.net/10220/25978 |
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