Gen Z and Uncertainty: Study of Management Accounting Decision-Making Behavior Based on Prospect Theory

The decision-making behavior of Generation Z as future decision makers is very important to know and understand. This study was motivated by the lack of research on the decision-making behavior of Generation Z, especially in the field of management accounting. Prospect Theory was chosen as the theor...

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Main Authors: Sudaryanti Dwiyani, Adib Noval, Sari Arista Fauzi Kartika, Fakriyyah Dewi Diah
Format: Article
Language:English
Published: EDP Sciences 2025-01-01
Series:SHS Web of Conferences
Subjects:
Online Access:https://www.shs-conferences.org/articles/shsconf/pdf/2025/08/shsconf_uiseb2025_01006.pdf
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author Sudaryanti Dwiyani
Adib Noval
Sari Arista Fauzi Kartika
Fakriyyah Dewi Diah
author_facet Sudaryanti Dwiyani
Adib Noval
Sari Arista Fauzi Kartika
Fakriyyah Dewi Diah
author_sort Sudaryanti Dwiyani
collection DOAJ
description The decision-making behavior of Generation Z as future decision makers is very important to know and understand. This study was motivated by the lack of research on the decision-making behavior of Generation Z, especially in the field of management accounting. Prospect Theory was chosen as the theoretical basis for testing the existence of decision-making bias, namely Certainty Effect, Reflection Effect and Isolation Effect. The instrument used was adopted from Kahneman & Tversky (1979) with adjustments according to Indonesian conditions. The results of the study showed support for Prospect Theory although not entirely. Students experienced a certainty effect but with a weaker effect compared to the results of the Kahneman & Tversky (1979) study. While in the Isolation effect and Reflection effect tests, students were significantly proven to experience it. The results of this study have an important impact on the design of accounting education in training students to make management accounting decisions in conditions full of uncertainty.
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institution Kabale University
issn 2261-2424
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spelling doaj-art-3d6a53baeeea48c281a5dc43aa5974ca2025-08-20T03:32:23ZengEDP SciencesSHS Web of Conferences2261-24242025-01-012170100610.1051/shsconf/202521701006shsconf_uiseb2025_01006Gen Z and Uncertainty: Study of Management Accounting Decision-Making Behavior Based on Prospect TheorySudaryanti Dwiyani0Adib Noval1Sari Arista Fauzi Kartika2Fakriyyah Dewi Diah3Universitas Islam Malang, LecturerUniversitas Brawijaya, LecturerUniversitas Islam Malang, LecturerUniversitas Islam Malang, LecturerThe decision-making behavior of Generation Z as future decision makers is very important to know and understand. This study was motivated by the lack of research on the decision-making behavior of Generation Z, especially in the field of management accounting. Prospect Theory was chosen as the theoretical basis for testing the existence of decision-making bias, namely Certainty Effect, Reflection Effect and Isolation Effect. The instrument used was adopted from Kahneman & Tversky (1979) with adjustments according to Indonesian conditions. The results of the study showed support for Prospect Theory although not entirely. Students experienced a certainty effect but with a weaker effect compared to the results of the Kahneman & Tversky (1979) study. While in the Isolation effect and Reflection effect tests, students were significantly proven to experience it. The results of this study have an important impact on the design of accounting education in training students to make management accounting decisions in conditions full of uncertainty.https://www.shs-conferences.org/articles/shsconf/pdf/2025/08/shsconf_uiseb2025_01006.pdfprospect theorymanagement accountingbehavioral biascertainty effectreflection effectisolation effect
spellingShingle Sudaryanti Dwiyani
Adib Noval
Sari Arista Fauzi Kartika
Fakriyyah Dewi Diah
Gen Z and Uncertainty: Study of Management Accounting Decision-Making Behavior Based on Prospect Theory
SHS Web of Conferences
prospect theory
management accounting
behavioral bias
certainty effect
reflection effect
isolation effect
title Gen Z and Uncertainty: Study of Management Accounting Decision-Making Behavior Based on Prospect Theory
title_full Gen Z and Uncertainty: Study of Management Accounting Decision-Making Behavior Based on Prospect Theory
title_fullStr Gen Z and Uncertainty: Study of Management Accounting Decision-Making Behavior Based on Prospect Theory
title_full_unstemmed Gen Z and Uncertainty: Study of Management Accounting Decision-Making Behavior Based on Prospect Theory
title_short Gen Z and Uncertainty: Study of Management Accounting Decision-Making Behavior Based on Prospect Theory
title_sort gen z and uncertainty study of management accounting decision making behavior based on prospect theory
topic prospect theory
management accounting
behavioral bias
certainty effect
reflection effect
isolation effect
url https://www.shs-conferences.org/articles/shsconf/pdf/2025/08/shsconf_uiseb2025_01006.pdf
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