Our research is focused on identifying specific skills that are necessary to effectively communicate the decision-making process within a financial organization. Through our research, we have identified specific skills that are critical for interpersonal communication within a financial organization.
Brennan, N. M., & Merkl-Davies, D. M. (2018). Do firms effectively communicate with financial stakeholders? A conceptual model of corporate communication in a capital market context. Accounting and Business Research, 48(5), 553-577. https://doi.org/10.1080/00014788.2018.1470143
This article dives deeper into whether there is effective communication between firms and financial stakeholders. The article discusses connectivity and investigates different aspects of connectivity. Additionally, the article establishes a framework for deciding whether effective communication is present or not.
Buchanan, J. L., Commerford, B. P., & Wang, E. Y. (2021). Auditor Actions and the Deterrence of Manager Opportunism: The Importance of Communication to the Board and Consistency with Peer Behavior. The Accounting Review, 96(3), 141-163. https://doi.org/10.2308/TAR-2017-0035
This research article discusses how the communication that auditors engage in can impact the decision-making of managers. The article analyzes multiple experiments in which variables, such as the auditor’s consistency in decision-making with managers, impacted the decision-making of all involved parties. Auditors who communicated directly with the company’s board of directors and did not share similar decision-making processes with managers were found to reduce real earnings management where operational decisions are made based on short-term earnings targets. Buchanan, Commerford, and Wang, establish the importance of knowing who to communicate with within an organization as communication with different parties can impact the resulting decision.
Hamilton, E. L., & Winchel, J. (2019). Investors’ Processing of Financial Communications: A Persuasion Perspective. Behavioral Research in Accounting, 31(1), 133-156. https://doi.org/10.2308/bria-52211
This article introduces theories in persuasion from various academic disciplines and applies them to the investor decision-making process. It also analyzes various studies that were conducted on financial reporting language and how both professional and nonprofessional investors interpreted the information. In addition, it incorporates how consumers of financial information can have varied interpretations based on their approach (i.e. intuitive vs analytical). While information in this article is technical it can still be applied to more casual applications.
Rebele, J. E., & St. Pierre, E. K. (2019). A commentary on learning objectives for accounting education programs: The importance of soft skills and technical knowledge. Journal of Accounting Education, 48, 71-79. https://doi.org/10.1016/j.jaccedu.2019.07.002
This article is an article on the first steps of implementing more effective communication skills in accounting firms. It discusses the pressure on accounting programs to teach more soft skills. The article also talks about how there is a limited amount of time to practice soft skills when learning the technicalities of public accounting. All this combined helps show the importance of effective communication skills in accounting.
Singh, A. K. (2014). Role of Interpersonal Communication in Organizational Effectiveness. International Journal of Research in Management & Business Studies, 1(4), 36-39. http://ijrmbs.com/vol1issue4/dramit.pdf
This article provides an overview of the role interpersonal communication skills play in the effectiveness of an organization. It introduces many different communication skills and the effect that such skills can have on an organization’s effectiveness. Being an international resource it helps to support the idea that communication skills have an impact on organizational effectiveness around the globe.
Tang, F., Hess, T. J., Valacich, J. S., & Sweeney, J. T. (2014). The Effects of Visualization and Interactivity on Calibration in Financial Decision-Making. Behavioral Research in Accounting, 26(1), 25-58. https://doi.org/10.2308/bria-50589
This article discusses the impact that interactive visual methods of communication have on the financial decision-making process. It includes experimentation done based on the level inter-activity of financial models and the corresponding perception of accuracy and confidence. The article demonstrates the importance of effective visual communication skills when establishing accuracy and confidence.
University of North Dakota. (2021, November 12). Communication in Accounting and Why It’s Important. https://onlinedegrees.und.edu/blog/benefits-of-communication-in-accounting/
The article explains that the common misconception of accountants being introverts is not true and highlights why its important to have strong communication skills in order to succeed. Some of the skills highlighted in the article includes helping management make good decisions, letting investors know how the business is doing, and communicating information about the business’s financial situation. Overall, the article addresses that having good communication skills is important to relay your message to clients in the clearest way possible. If there is poor communication, it will reflect negatively towards the company they represent.
Finance Team Members
Andrew Zetty, Brad Stipek, Cameron Beatty, and Ryan Ho