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 language | English |
---|---|
Pages (from-to) | 455-470 |
Number of pages | 16 |
Journal | Accounting and Business Research |
Volume | 47 |
Issue number | 4 |
Early online date | 12 Jan 2017 |
DOIs | |
Publication status | Published - 7 Jun 2017 |
Keywords
- decision-useful information
- graphical presentation
- impression management
- investor judgements
- order effect
- recency effect