Expectancy Theory and Behavioral Accounting Research

Vroom's expectancy theory, motivation = valence x instrumentality x expectancy, where valence measures the value an individual places in the reward, instrumentality refers to the whether the individual will actually receive the promised reward, and expectancy quantifies the expectation that the individual perceives in attaining a successful outcome. Vroom understood that employee performance is based on many individual factors such as motivation, skills and experience. VET has been used to study the effect of human behavior on accounting control systems and goal setting in the budget process.