Noise in accounting information: the signal detection theory perspective
Accounting information constitutes a “noisy” representation of economic reality due to the spectrum of accounting alternatives available to meet a diversity of information needs. In the presence of noise, decision-makers can either overlook signals that truly require attention or mistake noise for...
| Main Author: | |
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| Format: | Article |
| Language: | English |
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Faculty of Economics and Management, Universiti Putra Malaysia
2008
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| Online Access: | http://psasir.upm.edu.my/id/eprint/687/ http://psasir.upm.edu.my/id/eprint/687/1/bab09.pdf |
| _version_ | 1848838839361077248 |
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| author | Lau, Yeng Wai |
| author_facet | Lau, Yeng Wai |
| author_sort | Lau, Yeng Wai |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Accounting information constitutes a “noisy” representation of economic reality due to the spectrum of accounting alternatives available to meet a diversity of information needs. In the presence of noise, decision-makers can either overlook signals that truly require attention or mistake
noise for signals. This paper seeks to (1) discuss how decision-makers fare in discriminating accounting signals from noise based on extant empirical findings, (2) highlight the adverse effects of noise in accounting information from the signal detection theory perspective,
and (3) offer recommendations on how best to fend of the adverse influence of noise. |
| first_indexed | 2025-11-15T07:01:56Z |
| format | Article |
| id | upm-687 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T07:01:56Z |
| publishDate | 2008 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-6872015-07-06T01:50:56Z http://psasir.upm.edu.my/id/eprint/687/ Noise in accounting information: the signal detection theory perspective Lau, Yeng Wai Accounting information constitutes a “noisy” representation of economic reality due to the spectrum of accounting alternatives available to meet a diversity of information needs. In the presence of noise, decision-makers can either overlook signals that truly require attention or mistake noise for signals. This paper seeks to (1) discuss how decision-makers fare in discriminating accounting signals from noise based on extant empirical findings, (2) highlight the adverse effects of noise in accounting information from the signal detection theory perspective, and (3) offer recommendations on how best to fend of the adverse influence of noise. Faculty of Economics and Management, Universiti Putra Malaysia 2008-06 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/687/1/bab09.pdf Lau, Yeng Wai (2008) Noise in accounting information: the signal detection theory perspective. International Journal of Economics and Management, 2 (1). pp. 179-193. ISSN 1823-836X http://econ.upm.edu.my/ijem/vol2_no1.htm |
| spellingShingle | Lau, Yeng Wai Noise in accounting information: the signal detection theory perspective |
| title | Noise in accounting information: the signal detection theory perspective |
| title_full | Noise in accounting information: the signal detection theory perspective |
| title_fullStr | Noise in accounting information: the signal detection theory perspective |
| title_full_unstemmed | Noise in accounting information: the signal detection theory perspective |
| title_short | Noise in accounting information: the signal detection theory perspective |
| title_sort | noise in accounting information: the signal detection theory perspective |
| url | http://psasir.upm.edu.my/id/eprint/687/ http://psasir.upm.edu.my/id/eprint/687/ http://psasir.upm.edu.my/id/eprint/687/1/bab09.pdf |