Managerial and Functional Influences on Perceived Environmental Uncertainty

Document Type



Published in the Journal of Finance and Accountancy, volume 1. Bryant users may access this article here.


Environmental uncertainty; management; firm-size; functional areas; public accounting.


Academic and Bsuiness Research Institute

Publication Source

Journal of Finance and Accountancy


Perceived environmental uncertainty (PEU) is an important construct in behavioral research that has been widely studied. Critics argue that management should be used in the measurement of PEU, though many studies continue to ignore the distinction between management and non-management in the measurement of PEU. The distinctness of constructs and scales has important implications for the integrity of prior research. This paper examines the differences in PEU based on management versus non-management personnel, firm size, and functional areas. The research is based on a sample of 504 professionals in public accounting. The results indicate that management and non-management personnel have a significantly different level of PEU, thus confirming the criticism of studies that ignore the distinction between management and non-management measurement of PEU. Results also confirm the effects of firm size and functional areas on PEU. Future research using PEU in behavioral accounting research should consider the effect of management versus non-management, firm size, and functional areas in their research design.