the evidence of management motivation to revalue property plant and equipment in tunisia

Abstract

This article deals with the relationship between emotions and accounting methods. Specifically, it examines the links between cognitive biases and use of assets revaluation. Indeed, in order to improve the explanatory power of the positive theory of accounting we integrated the behavioural dimension in the analysis of accounting choices: our goal is to show the role of these biases on the choice of revaluation (negativity through the loss of optimism and complacency). All four cognitive biases were measured means of a questionnaire consisting of several items. The selected sample is composed of 120 Tunisians managers. Our results suggest that the presence of a revaluation is always positively correlated with the executives’ suggestibility in relation to the behavioural biases.