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 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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Publication Details

Journal
Springer Link (Chiba Institute of Technology)
Published
2025-05-26
DOI
https://doi.org/10.1051/shsconf/202521701006/pdf
Primary Topic
Financial Literacy and Behavior
Type
article
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article

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

Dwiyani Sudaryanti, Arista Fauzi Kartika Sari, Dewi Diah Fakriyyah, Noval Adib
Springer Link (Chiba Institute of Technology)
Financial Literacy and Behavior
article

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

Dwiyani Sudaryanti, Arista Fauzi Kartika Sari, Dewi Diah Fakriyyah, Noval Adib
article en

Abstract

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.

Springer Link (Chiba Institute of Technology)
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Openalex Percentile: Top 16%
Financial Literacy and Behavior
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Gen Z and Uncertainty: Study of Management Accounting Decision-Making Behavior Based on Prospect Theory — Dwiyani Sudaryanti, Arista Fauzi Kartika Sari, et al. · Springer Link (Chiba Institute of Technology) (2025) | TGRS Research Map | TGRS