Browsing Articles by Subject "base-ten thresholds"

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The power of numbers: base-ten threshold effects in reported revenue

Stice, Derrald; Stice, Earl K.; Stice, Han; Stice-Lawrence, Lorien (Social Science Research Network (SSRN), 2016)

We provide evidence that managers have a revealed preference for reporting total revenue numbers just above base-ten thresholds (i.e., “round” numbers) of the form N × 10K. Examples are $10 million (1 × 107) and $4 billion ...