Effects of auditors' concession timing on financial officers' negotiation judgements.
In this paper, we develop and test a conceptual model that posits how the timing of concessions made by an auditor to a client influences negotiation judgments. We conduct an experiment to investigate how financial officers’ negotiation-related judgments are influenced by negotiation strategies e...
| Váldodahkkit: | , |
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| Eará dahkkit: | |
| Materiálatiipa: | Research Report |
| Giella: | English |
| Almmustuhtton: |
2008
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| Fáttát: | |
| Liŋkkat: | http://hdl.handle.net/10356/14556 |
| _version_ | 1826125300725972992 |
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| author | Tan, Hun Tong. Trotman, Ken. |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Tan, Hun Tong. Trotman, Ken. |
| author_sort | Tan, Hun Tong. |
| collection | NTU |
| description | In this paper, we develop and test a conceptual model that posits how the timing of concessions
made by an auditor to a client influences negotiation judgments. We conduct an experiment to
investigate how financial officers’ negotiation-related judgments are influenced by negotiation
strategies employed by auditors. We manipulate between-subjects four negotiation strategies that
vary the timing of the concessions given, holding constant the total amount of concessions given.
These concessions vary in terms of whether they are given before the start of the negotiation,
after one round of negotiation, gradually during the negotiation, or at the end of the negotiation.
In our experiment, financial officers negotiate with a hypothetical auditor over four rounds of
negotiation. Our results support the use of giving gradual or delayed concessions, compared to
giving concessions early in the negotiation process. Our results are consistent with a mediation
model in which auditors’ negotiation strategies influence financial officers’ offers (given in the
round just before the auditor makes a final decision), which affects their satisfaction with the
negotiation outcome, and which, in turn, affects their intention to continue their relationship with
the auditor. We also provide evidence on the strategies used by financial officers.
Keywords: auditor-client negotiations, financial officers, negotiation strategy, concessions
Data availability: Contact authors |
| first_indexed | 2024-10-01T06:34:24Z |
| format | Research Report |
| id | ntu-10356/14556 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T06:34:24Z |
| publishDate | 2008 |
| record_format | dspace |
| spelling | ntu-10356/145562023-05-19T07:31:18Z Effects of auditors' concession timing on financial officers' negotiation judgements. Tan, Hun Tong. Trotman, Ken. Nanyang Business School DRNTU::Business::Auditing In this paper, we develop and test a conceptual model that posits how the timing of concessions made by an auditor to a client influences negotiation judgments. We conduct an experiment to investigate how financial officers’ negotiation-related judgments are influenced by negotiation strategies employed by auditors. We manipulate between-subjects four negotiation strategies that vary the timing of the concessions given, holding constant the total amount of concessions given. These concessions vary in terms of whether they are given before the start of the negotiation, after one round of negotiation, gradually during the negotiation, or at the end of the negotiation. In our experiment, financial officers negotiate with a hypothetical auditor over four rounds of negotiation. Our results support the use of giving gradual or delayed concessions, compared to giving concessions early in the negotiation process. Our results are consistent with a mediation model in which auditors’ negotiation strategies influence financial officers’ offers (given in the round just before the auditor makes a final decision), which affects their satisfaction with the negotiation outcome, and which, in turn, affects their intention to continue their relationship with the auditor. We also provide evidence on the strategies used by financial officers. Keywords: auditor-client negotiations, financial officers, negotiation strategy, concessions Data availability: Contact authors 2008-12-09T07:54:40Z 2008-12-09T07:54:40Z 2006 2006 Research Report http://hdl.handle.net/10356/14556 en 47 p. application/pdf |
| spellingShingle | DRNTU::Business::Auditing Tan, Hun Tong. Trotman, Ken. Effects of auditors' concession timing on financial officers' negotiation judgements. |
| title | Effects of auditors' concession timing on financial officers' negotiation judgements. |
| title_full | Effects of auditors' concession timing on financial officers' negotiation judgements. |
| title_fullStr | Effects of auditors' concession timing on financial officers' negotiation judgements. |
| title_full_unstemmed | Effects of auditors' concession timing on financial officers' negotiation judgements. |
| title_short | Effects of auditors' concession timing on financial officers' negotiation judgements. |
| title_sort | effects of auditors concession timing on financial officers negotiation judgements |
| topic | DRNTU::Business::Auditing |
| url | http://hdl.handle.net/10356/14556 |
| work_keys_str_mv | AT tanhuntong effectsofauditorsconcessiontimingonfinancialofficersnegotiationjudgements AT trotmanken effectsofauditorsconcessiontimingonfinancialofficersnegotiationjudgements |