The relevance of professional skepticism to finance professionals’ Socially Responsible Investing decisions

Cruz, Aeson Luiz Dela; Patel, Chris; Ying, Sammy Xiaoyan; Pan, Peipei

doi:10.1016/j.jbef.2020.100299

Cited by 11 publications

(11 citation statements)

References 37 publications

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“…Desde el punto de vista formativo, estas competencias son relevantes en la educación de los auditores, considerando los estándares en educación desarrolladas por parte del Consejo de Normas Internacionales de Formación en Contaduría (IAESB) y su relación con los componentes éticos involucrados en el ejercicio profesional de los auditores. Los resultados sugieren una serie de implicancias prácticas en la formación profesional de los futuros auditores, considerando que autores como Dela Cruz et al (2020) o Rodgers et al (2017 relevan la importancia de la formación sobre las competencias relacionadas al escepticismo profesional. Las implicancias prácticas y su discusión, se presentan a continuación.…”

Section: Discussionunclassified

“…Así, el escepticismo puede entenderse como la actitud que incluye elementos como el cuestionamiento y evaluación critica de las pruebas en la auditoría (PCAOB, 2012). De hecho, autores como Dela Cruz et al (2020) lo han vinculado con habilidades relacionadas con la capacidad de discernir y evaluar la relevancia y confiabilidad de las evidencias y la información. Lo anterior, ha hecho que el estudio del escepticismo en los profesionales de esta área siga siendo un tema relevante de estudiar en la formación universitaria (Hurtt et al, 2013).…”

Section: Introductionunclassified

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Variables relevantes para el escepticismo profesional en la formación de contadores auditores

et al. 2021

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El presente trabajo tuvo por objetivo analizar los determinantes del grado de escepticismo en los egresados de auditoría. Se aplicó una encuesta de percepción sobre el escepticismo profesional a 160 egresados de la carrera de auditoría de la Universidad Católica del Maule (Chile). Se analizaron las dimensiones de conocimiento, aplicación y formación sobre escepticismo profesional utilizando un modelo probabilístico del tipo probit ordenado. Los resultados indican que son relevantes de analizar el área de desempeño actual del egresado, tomando en consideración que desempeñarse en el área de auditoría es un moderador relevante del escepticismo en las dimensiones de concepto y aplicación. También es un determinante relevante la experiencia profesional, demostrando que modera las dimensiones de concepto y formación académica en escepticismo. Como conclusión, se puede indicar que la experiencia profesional es un moderador relevante del escepticismo profesional, por lo cual las actividades prácticas en auditoría son una estrategia que puede favorecer y potenciar la formación de los futuros egresados.

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Section: Discussionunclassified

Section: Introductionunclassified

Variables relevantes para el escepticismo profesional en la formación de contadores auditores

et al. 2021

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“…the tendency to sell appreciated stocks too early and hold depreciated stocks too long) than conventional investors. Dela Cruz et al (2020) suggest that behavioural biases, such as overconfidence and heuristics, may influence finance professionals' rationality, which may result in judgment errors when making SRI choices. They show that, given the complexity of SRI decisions and the lack of transparency in this investment sector, professional scepticism enhances finance professionals' screening strategies towards SRI, mitigating behavioural biases.…”

Section: 2mentioning

confidence: 99%

Gender-related effects of financial knowledge and confidence on preferences for ethical intermediaries and sustainable investments

Aristei,

Gallo

2023

IJBM

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PurposeThis study analyses the role of individuals' objective financial knowledge in shaping preferences for ethical intermediaries and sustainable investments in Italy. Another goal of this study is to assess the impact of individuals' misperceptions about their own financial knowledge and to test for gender-related differences in attitudes towards socially responsible investing (SRI).Design/methodology/approachUsing nationally representative microdata from the Bank of Italy’s “Italian Literacy and Financial Competence Survey” (IACOFI), the authors use probit models, extended to account for potential endogeneity issues, to assess the causal effects of financial knowledge and confidence on stated preferences for SRI. Empirical models also allow to explicitly assess the moderating role of gender on the effects of financial knowledge and confidence on attitudes towards sustainable investing.FindingsResults indicate that individuals' preferences for sustainable finance significantly increase with financial knowledge, suggesting that inadequate financial competencies represent a barrier to participation in SRI. At the same time, lack of confidence in one’s own financial knowledge significantly hampers attitudes towards sustainable investments. Furthermore, the authors show that women have a greater preference for sustainable finance than men and point out that financial knowledge and confidence exert heterogenous effects on attitudes towards SRI.Originality/valueThis study provides several contributions to the literature on SRI. First, the authors give evidence of the causal effect of financial knowledge on preferences for both ethical financial intermediaries and sustainable investments. Moreover, this is the first study to investigate the role of financial underconfidence bias in shaping individuals' SRI attitudes. Finally, extending previous research, the authors assess differences in SRI preferences between women and men and provide novel evidence on gender-related heterogeneity in the effects of financial knowledge and underconfidence.

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“…The researcher explored the three most widely recognized sceptical characteristics: interpersonal trust (and factors analysed by interpersonal trust factors), suspension of judgment, locus of control (a concept introduced by American psychologist Rotter and characterizes the subjective perception of localization of causes of behaviour or leadership in yourself or others). Nolder and Kadous (2018) propose a dual concept of professional scepticism (as a way of sceptical thinking and as a sceptical attitude) in order to develop measurement indicators for each component. The inclusion of a scepticism component broadens the notion of evaluating evidence by adding auditors' sense of risk as well as their belief in risk, and this, scientists say, will improve the predicted "strength of scepticism" in gathering audit evidence.…”

Section: Literature Reviewmentioning

confidence: 99%

Auditor's professional skepticism: a case from Ukraine

Fabiianska

Kutsyk

Babich

et al. 2021

Ind. Jour. Manag. & Prod.

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The authors conducted a study of the modern concept of professional skepticism of an auditor in Ukraine to develop proposals in accordance with the main directions of its development and improvement based on positive foreign experience. The research methodology is based on theoretical generalizations and the use of scientific tools, including comparative analysis, surveys of auditors to determine the level of their professional scepticism. 124 questionnaires were distributed to auditors in Ukraine in order to conduct empirical studies to determine the level of professional scepticism of auditors. A total of 92 questionnaires were received, accounting for 74% of responses. The study uses a questionnaire method to determine the level of professional scepticism of participants on the thirty questions identified by HURTT (2010). The authors substantiated the need to develop a separate working document for the auditor, which should contain a list of questions, the answers to which would enable the head of the audit group (the head of the audit firm responsible for the quality control system of the audit firm) to summarize information on the use of professional skepticism by the group members in the audit process for confidence that the audit engagement was carried out with a high level of professionalism and professional independence. The use of the Hurtt scale of professional skepticism (2010) to measure the level of professional skepticism of auditors in Ukraine is quite acceptable for ensuring quality control procedures for audit services both at the intra-firm level and at the level of external quality control.

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The relevance of professional skepticism to finance professionals’ Socially Responsible Investing decisions

Cited by 11 publications

References 37 publications

Variables relevantes para el escepticismo profesional en la formación de contadores auditores

Variables relevantes para el escepticismo profesional en la formación de contadores auditores

Gender-related effects of financial knowledge and confidence on preferences for ethical intermediaries and sustainable investments

Auditor's professional skepticism: a case from Ukraine

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