Author: Ahmet C. Kurt, PhD

[ad_1] Accounting decisions involve significant judgment. After all, US GAAP gives firms the discretion to choose among alternative accounting methods when it comes to inventory valuation, depreciation calculation, derivative accounting,…

[ad_1] People dislike losses more than they like gains. Known as loss aversion, this phenomenon, or behavioral bias, serves as a cornerstone of Daniel Kahneman and Amos Tversky’s prospect theory.…