Information Load and Consistency of Decisions

Abstract

Rapid growth of automated accounting information systems has resulted in the availability of more accounting information on a more timely basis to support decision-making activities. To best support the needs of decision-makers designers of accounting information systems must present the information in such a way that decision-makers can make effective decisions in an efficient manner. Research has shown that decision-makers' strategies, and thus outcomes, are influenced by the amount of information available for making the decision. Existing studies of the effects of information load on decision-making employ at least two definitions of information load and often examine only accuracy of decisions. This study used signal detection theory to examine the effect of both definitions of information load on decision-makers' consistent application of a decision rule. The study shows that consistency of decisions is a function of the time allowed per cue, not the number of cues available. However, the relationship is not an increasing one, but instead is U-shaped.