COGNITIVE DISSONANCE UNDER OBEDIENCE PRESSURE

Abstract

This study aims to analyze the response of management accountants when they were asked by their immediate manager to engage in accounting manipulation. This study also investigates whether management accountant under obedience pressure which obey unethical order of superordinate experience cognitive dissonance. This research employed laboratory experiment as a preferred method. This experiment was conducted through on-line experiment with computerized software application developed for this research purpose. There are 200 subjects participate in this experiment. Results of this study indicate that in a condition under obedience pressure, most subjects tend to obey authority orders to engage in accounting manipulation. This study also found that subjects engage in accounting manipulation as ordered by their authority experience cognitive dissonance. They had uncomfortable feeling due to their adherence to the authority destructive order.