Please use this identifier to cite or link to this item:
Title: Effects of auditors' concession timing on financial officers' negotiation judgements.
Authors: Tan, Hun Tong.
Trotman, Ken.
Keywords: DRNTU::Business::Auditing
Issue Date: 2006
Abstract: 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
Fulltext Permission: restricted
Fulltext Availability: With Fulltext
Appears in Collections:NBS Research Reports (Staff & Graduate Students)

Files in This Item:
File Description SizeFormat 
RCC19-2004 Tan Hun Tong NBS.pdf
  Restricted Access
213.9 kBAdobe PDFView/Open

Page view(s) 20

Updated on Nov 29, 2021


Updated on Nov 29, 2021

Google ScholarTM


Items in DR-NTU are protected by copyright, with all rights reserved, unless otherwise indicated.