Title : The Effect of Adverse Selection and Psychological Capital on Decision Making Involving Escalation Situations: An Experimental Study
Authors:
- I Made Narsa
- Niluh Putu Dian Rosalina Handayani Narsa
Department : Accounting
Journal Name : Scientific Journal of Accounting
Kinds of Journal: –
Keywords : adverse selection, agency theory, escalation of commitment, psychological capital
Abstract:
This study examines the determinant of structural variables (adverse selection) and psychological variables (psychological capital – PsyCap) on managers' tendencies to escalate their commitment. This study used 2 x 2 factorial experimental design as a research method. The participants of this study are management and accounting master students who act as surrogates of project managers. Using ANOVA as the data analysis technique, this study found a main effect of adverse selection and PsyCap in predicting the escalation of commitment. However, there is no effect of the interaction between those two variables on escalation of commitment. This study contributes to the literature of escalation of commitment as well as psychological capital literature, considering that PsyCap is always associated with positive outcomes but this study found that high PsyCap might also predict undesirable outcomes such as escalation of commitment.
For details : https://doi.org/10.23887/jia.v6i1.3023