Behavioral Accounting: Theoretical View

Abstract

Economic models under assumption on rational behavior of people in decision making, gradually have started to lose their validity after the integration of psychology and sociology into the related literature. Wide acceptance of bounded rationality concept makes the analysis and investigation of human behaviors a highly-debated issue. These developments provide the spawn of behavioral economics. Following, behavioral studies have started to be included in the areas of finance and accounting. Behavioral accounting examines the effect of accounting on stakeholders’ behaviors by benefit from some theories and neuroscience. This study aims to present the conceptual dimension of behavioral accounting. In this context, the concept of behavioral accounting and the related theories are discussed.