Foreign language effect in accounting uncertainty expressions: Interpretation and probabilistic estimation
Publication Name
Journal of International Accounting, Auditing and Taxation
Abstract
The foreign language effect, or thinking in a foreign language, reduces judgment bias under uncertainty. This study investigates how language use (native versus foreign) affects accounting judgment on uncertainty expressions. We conducted two separate experiments: between-subjects and within-subjects, both of which included tasks requiring interpretations and probability estimations based on accounting standard uncertainty expressions. The results demonstrated that foreign language use affected the interpretation of uncertainty expressions and reduced judgment bias in probability estimation, particularly in the context of asset recognition. These findings have important implications for accounting research and reporting.
Open Access Status
This publication is not available as open access
Volume
50
Article Number
100528
Funding Sponsor
Hubei University of Technology