Rosana, Kevilia and Handoko, Jesica (2021) Effect Of Hurdle Rate And Confidence On Commitment Escalation. Journal of Accounting, Entrepreneurship and Financial Technology (JAEF), 3 (1). pp. 1-14. ISSN p-ISSN: 2686-5505 e-ISSN: 2686-4479
![[thumbnail of Effect Of Hurdle Rate And Confidence On Commitment Escalation]](https://repositori.ukwms.ac.id/style/images/fileicons/text.png) |
Text (Effect Of Hurdle Rate And Confidence On Commitment Escalation)
40-Effect_Of_hurdle_Rate_and_confidence_.pdf Download (112kB) |
Abstract
Companies make investments to benefit from existing projects. Managers are responsible for every investment decision taken, which must be correct and bring big profits in the future. They must make the right decisions in continuing or stopping the project. However, managers sometimes make wrong decisions by continuing to continue less profitable projects, known as escalation of commitment. Escalation of commitment is the decision to continue the manager’s project even though it is known to be in an unfavorable state. This study aims to determine the effect of hurdle rates and confidence on the escalation of commitment. The study’s research design used a 3x2 experiment between subjects carried out to accounting students in WMCUS who had passed the management accounting course. The data from the experiment will be analyzed using ANOVA statistical tools. The results obtained in this study are (a) hurdle rates significantly induced escalation of commitment and (b) confidence does not affect escalation of commitment. Also, there is no interaction between hurdle rates and confidence in the escalation of commitment. It was concluded that using student participants tends to escalate their commitment in believing that it will provide gains in the future.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | hurdle rates, confidence, escalation of commitment |
| Subjects: | Business > Accounting Digital Business Management > Business > Accounting |
| Divisions: | Journal Publication |
| Depositing User: | F.X. Hadi |
| Date Deposited: | 24 Jan 2025 08:47 |
| Last Modified: | 24 Jan 2025 08:47 |
| URI: | https://repositori.ukwms.ac.id/id/eprint/42503 |
Actions (login required)
 |
View Item |