Information Load and Decision Consistency
The rapid growth of automated accounting information systems has resulted in more accounting information available on a more timely basis to support decision making activities. To best support the needs of decision makers, designers of accounting information systems must present the information in such a way that decision makers can make effective decisions in an efficient manner.
Research has shown that decision makers' decision strategies, and thus decision outcomes, are influenced by the amount of information available for making the decision. Existing studies of information load effects on decision making employ at least two definitions of information load and often examine only decision accuracy. This study uses signal detection theory to examine the effect of both information load definitions on decision makers' consistent application of a decision rule.
The study finds that the interaction between the number of information cues available and the time allowed for making the decision is the significant determinant of decision consistency. This is consistent with the number of cues processed per period of time definition of information load. It also appears that the presence of this type of information load leads decision makers to adopt a simple decision rule that can be applied more consistently.
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