Abstract
An element of every individuals cognitive decision making process is cognitive complexity. In a complex financial environment individuals with high cognitive complexity can evaluate more information and develop more alternatives for possible action than individuals with low cognitive complexity. More alternatives should include higher quality alternatives, which should lead to higher net cash flow when an optimal decision is finally selected. This study involves an experiment with 94 upperdivision accounting students. The experiment measured the number and quality of alternatives developed by the subjects in solving a complex manufacturing case. The net cash flow impact of the best alternative, as selected by the subject, was also calculated. These results were tested against the subject's cognitive complexity. The results indicate that cognitive complexity does have a significant effect on the quality of alternatives developed through an interaction with the subject's level of work experience. Further, cognitive complexity had an effect on the net cash flow realized through an interaction with the quality of alternatives suggested by the subjects.
Nixon, Mark Reed (1995). The role of cognitive complexity in a financial decision making environment. Texas A&M University. Texas A&M University. Libraries. Available electronically from
https : / /hdl .handle .net /1969 .1 /DISSERTATIONS -1575795.