The directionality of uncertainty expressions and the foreign language effect Context and accounting judgement

Purpose This study aims to investigate two issues inherent in accounting judgements: the directional influence of uncertainty expressions and how they might positively or negatively affect accounting judgements and the foreign-language effect (FLE), which refers to the reduction of judgement bias that occurs when an accounting judgement is made in one's foreign language. This study examines both issues in the context of accounting judgements made in Chinese and English languages. Design/methodology/approach This study conducted two experiments. The first experiment applied a 2 x 2 between-subject research design, and the second experiment adopted a 2 x 2 within-subject approach. Findings The overall results revealed that directionality biases existed in the exercise of accounting judgement in subjects' native and foreign languages. However, when the language was switched from the subjects' native tongue to a foreign language, overall directionality biases are reduced. Originality/value This study contributes to the literature on cross-lingual accounting, both theoretically and methodologically. It also extends the FLE theory to an accounting context, providing insights on how language is involved in judgements concerning uncertainty expressions.