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Accounting

School of Accountancy Faculty Publications and Presentations

2021

Language

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Language In Economics And Accounting Research: The Role Of Linguistic History, Giorgio Gotti, Seán G. Roberts, Marco Fasan, Cole B. J. Robertson Jul 2021

Language In Economics And Accounting Research: The Role Of Linguistic History, Giorgio Gotti, Seán G. Roberts, Marco Fasan, Cole B. J. Robertson

School of Accountancy Faculty Publications and Presentations

This paper investigates whether a consideration of linguistic history is important when studying the relationship between economic and linguistic behaviors. Several recent economic studies have suggested that differences between languages can affect the way people think and behave (linguistic relativity or Sapir–Whorf hypothesis). For example, the way a language obliges one to talk about the future might influence intertemporal decisions, such as a company’s earnings management. However, languages have historical relations that lead to shared features—they do not constitute independent observations. This can inflate correlations between variables if not dealt with appropriately (Galton’s problem). We discuss this problem …