ATJ Asian Tax Journal

Asian Tax Journal

Print ISSN 1738-3323 Online ISSN 2733-9270

The Effect of Accounting Knowledge and Information Utilization on the Willingness to Pay (WTP) of Accounting Information

  • Sang-Ho Kwon Induk University

Asian Tax Journal Vol. 15 No. 6 (2014), pp. 117-142

Abstract

The purpose of this study is to examine the effect of accounting knowledge and accountinginformation utilization on the willingness to pay (WTP) of accounting information. WTP can bean indicator of individual investor’ utility on accounting information as the concept of Hick’compensating surplus (CS). Data were collected by questionnaire survey on people over 20 yearsold in Seoul area. The investment－experienced respondents and the investment－inexperiencedrespondents are 218 persons (57.5%) and 161 persons (42.5%), respectively. The results are summarized as follows. In the test for difference in means on both respondents,the comprehension and recognition on the K－IFRS’ application, the comprehension of differencesbetween K－IFRS and K－GAAP, and the reliability of accounting information have differences inmeans, but the WTP of accounting information doesn’t have any difference in means. In thelogistic regression analysis, first, as for the investment－experienced respondents, both of theaccounting information utilization and the investment outcome are positively correlated with WTP,whereas the accounting knowledge doesn’t have any significant correlation with WTP. Second, asfor the investment－inexperienced respondents, the interest in accounting and investment, and theincome level are positively correlated with WTP. In both respondents, women have a higher WTPthan men. Additionally, in the logistic regression analysis on all samples, the accountingknowledge, the accounting information utilization, the interest in accounting and investment,investment outcome, and gender are positively correlated with WTP. The concept of WTP wasused in the test of accounting information’s usefulness in this study. The results gleaned from thisstudy may contribute to investigate the relationship between the accounting knowledge, theinformation utilization and WTP to accounting information.

Keywords

  • Accounting Knowledge
  • Information Utilization
  • Willingness To Pay (WTP)

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