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The impact of social and environmental information on managers' decisions: Experimental evidence from Indonesia
Madein A.
Asian Review of Accounting
Q2Abstract
Purpose – The purpose of this paper is to examine whether managers consider social and environmental information in evaluating projects. Design/methodology/approach – Built on the stakeholder theory, this study hypothesises that managers consider social and environmental information in evaluating their projects. To test the hypotheses, this study employs experimental design. Findings – The authors find evidence that managers consider social and environmental information in evaluating their projects. Research limitations/implications – This study finds that social and environmental information is relevant for managerial decision making, particularly in project evaluation. Practical implications – Social and environmental information is considered relevant for project evaluation decision. Hence, managers should be provided those information. Originality/value – To the best of the knowledge, this is the first accounting study which examines the effect of social and environmental information on managers’ decisions, particularly in the Asian context using experimental approach. Previous studies only examined the effect social and environmental information on external stakeholders, such as investors.