The objective of financial reporting is to provide decision-useful information to a wide-range of existing and potential stakeholders. However, the under regulation of qualitative financial information, such as management commentary and design elements, such as the use of graphical images, may enable management to opportunistically engage in impression management through strategic disclosure and presentation. The aim of this study is to examine the impact of information presentation order on the judgments of investors. Specifically, it focuses on the strategic presentational ordering of graphical and textual disclosures and how it may prompt order effects in investor judgments of corporate performance. The study utilizes an eye-tracking device to provide in-depth insight into the perceptive and cognitive processes of individuals used to assess financial information and form judgments. The main benefit of this study is to provide a better understanding of how impression management may distort the judgments of investors and how this is likely to impact investors’ portfolios. Ultimately, the findings may help to enhance decision-usefulness of financial information and judgments made by investors.
|Title of host publication||EAA 2014|
|Subtitle of host publication||European Accounting Association 37th Annual Congress|
|Place of Publication||Tallinn|
|Publisher||European Accounting Association|
|Number of pages||1|
|Publication status||Published - 2014|
|Event||European Accounting Association Annual Congress (37th : 2014) - Tallinn, Estonia|
Duration: 21 May 2014 → 23 May 2014
|Conference||European Accounting Association Annual Congress (37th : 2014)|
|Period||21/05/14 → 23/05/14|
Hellmann, A., De Mello, L., & Yeow, C. (2014). The impact of information presentation order on the judgments of non-professional investors. In EAA 2014: European Accounting Association 37th Annual Congress Tallinn: European Accounting Association.