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

Research output: Contribution to journalArticleResearchpeer-review

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.

LanguageEnglish
Pages455-470
Number of pages16
JournalAccounting and Business Research
Volume47
Issue number4
Early online date12 Jan 2017
DOIs
Publication statusPublished - 7 Jun 2017

Fingerprint

Nonprofessional investors
Recency
Graph
Inclusion
Financial information
Performance ratings

Keywords

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

Cite this

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title = "The influence of textual presentation order and graphical presentation on the judgements of non-professional investors",
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.",
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The influence of textual presentation order and graphical presentation on the judgements of non-professional investors. / Hellmann, Andreas; Yeow, Chiing; De Mello, Lurion.

In: Accounting and Business Research, Vol. 47, No. 4, 07.06.2017, p. 455-470.

Research output: Contribution to journalArticleResearchpeer-review

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