An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

Evelyn A McDowell
Rider University

Evelyn A McDowell
Rider University

Abstract: The goal of this study is to provide direct evidence of the relationship between donations, reciprocity, and the use of financial information by donors. An underlying assumption in accounting research is that donors are swayed by financial information. However, there is little direct evidence. This study provides data on how donors actually use financial information in their decision process. A pre-decisional research method is used to track the information selected by subjects The findings indicate that reciprocity is a powerful motivator. The program ratio, a supposedly salient piece of financial information and purported to play a significant role in donor’s investment choice, is not the overwhelming factor in the decision to contribute to an organization. Additionally, the evidence support that non-financial information is useful and, in some cases, makes accounting information less relevant. Overall, the findings indicate that reciprocity affects decision making.

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