The Construction of Reality

A number of prior studies have revealed that CEOs' accounts of company performance are self-serving. These studies, predominantly conducted in the United States, show that CEOs are willing to take credit for favourable outcomes, but are reluctant to assume responsibility for unfavourable ones. Recent social-psychological research, however, suggests that such self-serving biases are less universal than they were previously thought to be and might be more typical for western than for eastern societies. Therefore, we examine whether such cultural differences are also present in managers' explanations for company results. Content analysing 278 letters to the shareholders of American, Dutch, and Japanese companies we find that CEOs' explanations do cross-culturally vary, thereby complementing and extending previous work on self-serving biases in accounting narratives.

Eerder onderzoek heeft aangetoond dat verklaringen die bestuursvoorzitters (CEOs) voor ondernemingsresultaten geven zelfzuchtig zijn. Deze studies, die voornamelijk afkosmtig zijn uit de Verenigde Staten, laten zien dat bestuursvoorzitters geneigd zijn krediet te nemen voor goede resultaten, maar niet snel de schuld op zich nemen voor tegenvallende resultaten. Recent uitgevoerd sociaal-psychologisch onderzoek doet echter vermoeden dat dergelijke zelfzuchtige vertekeningen in verklaringsgedrag meer voorkomen in landen uit Westerse culturen dan in landen uit Oosterse culturen. Dit onderzoek beoogt derhalve vast te stellen of zo'n cultureel verschil ook aanwezig is in de wijze waarop bestuursvoorzitters de resultaten van de onderneming verklaren. Daartoe zijn 278 "Berichten aan de aandeelhouders" van Amerikaanse, Japanse en Nederlandse bedrijven onderzocht. De resultaten wijzen inderdaad op het bestaan van culturele verschillen. Reggy Hooghiemstra was born on 14 January 1972 in Oranjestad (Aruba). From 1990 till 1996 he studied economics at the University of Groningen. During this time he spent half a year as an exchange student at the Universidad de Salamanca in Spain. He was furthermore employed by the Department of Auditing of the University of Groningen as a research assistant and completed an internship on value for money auditing at Price Waterhouse in The Hague. After obtaining his Master's degree he worked as an auditor at Price Waterhouse from 1996 till 1998, during which he also obtained his registeraccountant certificate (at the University of Groningen). From September 1998 onwards Reggy Hooghiemstra has been appointed as a PhD student at the Financial Management Department of the Rotterdam School of Management at Erasmus University. From 1999 onwards he also worked as a research associate, specialised in corporate governance, at the Department of Auditing at the University of Groningen.