@article{74edaf31c1fb462783c32f1e737ea9c8,
title = "The Effect of Advice Valence on the Perceived Credibility of Data Analytics",
abstract = "We use an experiment to examine how advice valence (i.e., whether the advice suggests good news or bad news) affects the perceived source credibility of data analytics compared to human experts as a result of motivated reasoning. We predict that individuals will perceive data analytics as less credible than human experts, but only when the advice suggests bad news. Using a forecasting task in which individuals are seeking advice from either a human expert or data analytics, we find evidence consistent with our prediction. Furthermore, we find that this effect is mediated by the perceived competence of the advice source. We contribute to the nascent accounting literature on data analytics by providing evidence on a potential impediment to successfully transitioning to the use of analytics for decision-making in organizations.",
keywords = "advice, data analytics, motivated reasoning, source credibility",
author = "Chen, {Clara Xiaoling} and Ryan Hudgins and Wright, {William F.}",
note = "Funding Information: We thank Jongwoon (Willie) Choi (editor) and two anonymous reviewers for their helpful suggestions and guidance. We also thank Andy Bauer, Tim Brown, Joseph Burke, Deni Cikurel, Paul Demer{\'e}, Brian Gale, Jeffrey Hales, Kamber Hetrick, Peter Kipp, Peter Kroos, Kim Mendoza, Jordan Samet, Tom Vance, Michael Williamson, workshop participants at the University of Dayton, the University of Illinois at Urbana–Champaign, and UNSW Sydney, and participants at the 2016 10th Conference on New Directions in Management Accounting, the 2017 AAA Accounting, Behavior and Organizations Research Conference, and the 2018 AAA Management Accounting Section Midyear Meeting, as well as members of the Management Accounting Reading Group and the Advanced Behavioral Research Seminar at the University of Illinois at Urbana–Champaign for their helpful comments and suggestions. Clara Xiaoling Chen is grateful for generous financial support from the Lillian and Morrie Moss Professorship, the PricewaterhouseCoopers Fellowship, and the Fred and Virginia Roedgers Fellowship. Ryan Hudgins is grateful for financial support from the Richard D. and Anne Marie Irwin Fellowship. Publisher Copyright: {\textcopyright} 2022, American Accounting Association. All rights reserved.",
year = "2022",
month = jun,
day = "1",
doi = "10.2308/JMAR-2020-015",
language = "English (US)",
volume = "34",
pages = "97--116",
journal = "Journal of Management Accounting Research",
issn = "1049-2127",
publisher = "American Accounting Association",
number = "2",
}