The influence of textual presentation order and graphical presentation on the judgements of non-professional investors

Andreas Hellmann*, Chiing Yeow, Lurion De Mello

*Corresponding author for this work

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

The aim of this study is to examine the influence of textual presentation order and graphical presentation on the judgements of non-professional investors. Adopting an experimental approach and drawing on the belief-adjustment model, the study captures whether a recency effect prevails and whether this effect can be moderated by the inclusion of a graph. Additionally, the study utilises eye-tracking to provide a novel insight into the processes individuals use to assess financial information and form judgements. The results reveal that non-professional investors are susceptible to recency effects due to the strategic presentation ordering of narrative information. Non-professional investors give a lower performance rating if the negative information is presented last. The recency effect is not reduced through the inclusion of a graph.

Original languageEnglish
Pages (from-to)455-470
Number of pages16
JournalAccounting and Business Research
Volume47
Issue number4
Early online date12 Jan 2017
DOIs
Publication statusPublished - 7 Jun 2017

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Keywords

  • decision-useful information
  • graphical presentation
  • impression management
  • investor judgements
  • order effect
  • recency effect

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