Do Weather-Induced Moods Affect Auditor Going Concern Decisions?

Abstract

The study investigates whether auditor will be affected by irrational moods factors when they make decision-making judgments on opinions According to past studies on psychology and behavioral finance personal moods will be affected by the weather and then affect its decision-making process and behavior People would be in more negative moods in bad weather and tend to make negative decisions or judgments Based on this point of view the study will focus on the listed financial crisis companies headquartered in the United States from 2000 to 2018 to explore the possibility that weather-induced moods change will cause auditor to issue going concern decisions and use the cloud cover in the sky as a proxy variables to measure the moods of auditor The empirical results show that negative moods are positively correlated with the possibility of auditor issuing going concern decisions supporting the study hypothesis The additional experiment is consistent with the hypothesis of the study The results of the study provide evidence that supplements the existing determinants of going concern decisions stating that auditor will also be affected by irrational moods factors more than just "economic dependence" and "reputation protection"

Date of Award	2020
Original language	English
Supervisor	Ting-Kai Chou (Supervisor)