Evaluating company adoptions of blockchain technology: How do management and auditor communications affect nonprofessional investor judgments?

【Author】 Austin, Ashley A.; Williams, L. Tyler

【Source】JOURNAL OF ACCOUNTING AND PUBLIC POLICY

【影响因子】3.629

【Abstract】Blockchain, an advanced technology with immense capabilities, is disrupting industries and global commerce. Given blockchain's complexity, investors will likely rely heavily upon information communicated by management and auditors to understand the risks and benefits of companies using blockchain. In this study, we experimentally investigate how management and auditor communications regarding a company's use of advanced technology affects nonprofessional investor judgments. First, we investigate if these investors change their judgments depending upon whether management's descriptions of the advanced technology in the 10-K specifically reference blockchain or not, as prior research suggests investors could react positively or negatively. We also examine whether the presence of a critical audit matter (CAM) related to the advanced technology interacts with specific blockchain references to affect investor judgments, as our theory predicts the combination of a blockchain reference and a technology-related CAM will prompt less investment. Absent a technology-related CAM, we find no evidence that blockchain references influence investor judgments. However, we find that when blockchain references accompany a technology-related CAM, investors indicate less investment. Altogether, these findings contribute to the literature by highlighting the interactive effect of management and auditor communications concerning advanced technologies, as these reporting choices affect the judgments and decision-making of nonprofessional investors. (C) 2021 Elsevier Inc. All rights reserved.

【Keywords】Blockchain; Critical audit matters; Nonprofessional investors

【发表时间】2021 SEP-OCT

【收录时间】2022-02-11

【文献类型】期刊

【主题类别】

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