5,842
Views
21
CrossRef citations to date
0
Altmetric
Original Articles

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

, &

References

  • Arnold, V., Collier, P.A., Leech, S.A., and Sutton, S.G., 2000. The effect of experience and complexity on order and recency bias in decision making by professional accountants. Accounting and Finance, 40 (2), 109–134. doi: 10.1111/1467-629X.00039
  • Ashton, R.H. and Kennedy, J., 2002. Eliminating recency with self-review: the case of auditors’ ‘going concern’ judgments. Journal of Behavioral Decision Making, 15 (3), 221–231. doi: 10.1002/bdm.412
  • Australian Prudential Regulation Authority, 2016. Quarterly Superannuation Performance Statistics June 2016. Available from: http://www.apra.gov.au/Super/Publications/Documents/2016QSP201606.pdf (accessed 26 October 2016).
  • Baird, J.E. and Zelin, R.C., 2000. The effects of information ordering on investor perceptions: an experiment utilizing presidents’ letters. Journal of Financial and Strategic Decisions, 13 (3), 71–80.
  • Beattie, V. and Jones, M.J., 1999. Australian financial graphs: an empirical study. Abacus, 35 (1), 46–76. doi: 10.1111/1467-6281.00034
  • Beattie, V. and Jones, M.J., 2000. Impression management: the case of inter-country financial graphs. Journal of International Accounting, Auditing & Taxation, 9 (2), 159–183. doi: 10.1016/S1061-9518(00)00030-6
  • Beattie, V. and Jones, M.J., 2001. A six-country comparison of the use of graphs in annual reports. International Journal of Accounting, 36 (2), 195–222. doi: 10.1016/S0020-7063(01)00094-2
  • Beattie, V. and Jones, M.J., 2002a. Measurement distortion of graphs in corporate reports: an experimental study. Accounting, Auditing and Accountability Journal, 15 (4), 546–564. doi: 10.1108/09513570210440595
  • Beattie, V. and Jones, M.J., 2002b. The impact of graph slope on rate of change judgments in corporate reports. Abacus, 38 (2), 177–199. doi: 10.1111/1467-6281.00104
  • Beattie, V. and Jones, M.J., 2008. Corporate reporting using graphs: a review and synthesis. Journal of Accounting Literature, 27 (1), 71–110.
  • Beattie, V., Dhanani, A., and Jones, M.J., 2008. Investigating presentational change in U.K. annual reports: a longitudinal perspective. Journal of Business Communication, 45 (2), 181–222. doi: 10.1177/0021943607313993
  • Bordalo, P., Gennaioli, N., and Schleifer, A., 2012. Salience theory of choice under risk. Quarterly Journal of Economics, 127 (3), 1243–1285. doi: 10.1093/qje/qjs018
  • Bruce, N.D.B. and Tsotsos, J.K., 2009. Saliency, attention, and visual search: an information theoretic approach. Journal of Vision, 9 (3), 1–24. doi: 10.1167/9.3.5
  • Busemeyer, J.R. and Johnson, J.G., 2004. Computational models of decision making. In: D.J. Koehler and N. Harvey, eds. Blackwell Handbook of Judgment and Decision Making. Malden, MA: Blackwell Publishing, 133–154.
  • Chen, Y., Jermias, J., and Panggabean, T., 2016. The role of visual attention in the managerial judgment of balanced-scorecard performance evaluation: insights from using an eye-tracking device. Journal of Accounting Research, 54 (1), 113–145. doi: 10.1111/1475-679X.12102
  • Cho, C.H., Michelon, G., and Patten, D.M., 2012. Enhancement and obfuscation through the use of graphs in sustainability reports: an international comparison. Sustainability Accounting, Management and Policy Journal, 3 (1), 74–88. doi: 10.1108/20408021211223561
  • Cuccia, A.D. and Mc Gill, G.A., 2000. The role of decision strategies in understanding professionals’ susceptibility to judgment biases. Journal of Accounting Research, 38 (2), 419–435. doi: 10.2307/2672940
  • Cushing, B.E. and Ahlawat, S.S., 1996. Mitigation of recency bias in audit judgment: the effect of documentation. Auditing, 15 (2), 110–122.
  • Dilla, W.N. and Janvrin, D.J., 2010. Voluntary disclosure in annual reports: the association between magnitude and direction of change in corporate financial performance and graph use. Accounting Horizons, 24 (2), 257–278. doi: 10.2308/acch.2010.24.2.257
  • Dilla, W.N., Janvrin, D.J., and Jeffrey, C., 2013. The impact of graphical displays of pro forma earnings information on professional and nonprofessional investors’ earnings judgments. Behavioral Research in Accounting, 25 (1), 37–60. doi: 10.2308/bria-50289
  • Djamasbi, S., Siegel, M., and Tullis, T., 2011. Visual hierarchy and viewing behavior: an eye tracking study. Human-Computer Interaction. Design and Development Approaches, 6761 (1), 331–340.
  • Duchowski, A.T., 2002. A breadth-first survey of eye-tracking applications. Behavior Research Methods, Instruments, & Computers, 34 (4), 455–470. doi: 10.3758/BF03195475
  • Duchowski, A.T., 2007. Eye Tracking Methodology Theory and Practice. 2nd ed. London: Springer.
  • Erikkson, K. and Simpson, B., 2010. Emotional reactions to losing explain gender differences in entering a risky lottery. Judgment and Decision Making, 5 (3), 159–163.
  • Evans, J.S.B., 2008. Dual-processing accounts of reasoning, judgment, and social cognition. Annual Review of Psychology, 59, 255–278. doi: 10.1146/annurev.psych.59.103006.093629
  • Favere-Marchesi, M., 2006. ‘Order effects’ revisited: the importance of chronology. Auditing, 25 (1), 69–83. doi: 10.2308/aud.2006.25.1.69
  • Frederickson, J.R. and Miller, J.S., 2004. The effects of pro forma earnings disclosures on analysts’ and nonprofessional investors’ equity valuation judgments. Accounting Review, 79 (3), 667–686. doi: 10.2308/accr.2004.79.3.667
  • Gigerenzer, G. and Gaissmaier, W., 2011. Heuristic decision making. Annual Review of Psychology, 62, 451–482. doi: 10.1146/annurev-psych-120709-145346
  • Gigerenzer, G. and Goldstein, D.G., 1996. Reasoning the fast and frugal way: models of bounded rationality. Psychological Review, 103 (4), 650–669. doi: 10.1037/0033-295X.103.4.650
  • Gigerenzer, G. and Todd, P.M., 1999. Fast and frugal heuristics: the adaptive toolbox. In: G. Gigerenzer, P.M. Todd, and the ABC Research Group, eds. Simple Heuristics That Make Us Smart. New York: Oxford University Press, 3–34.
  • Grant, E. R. and Spivey, M.J., 2003. Eye movements and problem solving: guiding attention guides thought. Psychological Science, 14 (5), 462–466. doi: 10.1111/1467-9280.02454
  • Guiral, A. and Esteo, F., 2006. Are Spanish auditors skeptical in going concern evaluations? Managerial Auditing Journal, 21 (6), 598–620. doi: 10.1108/02686900610674889
  • Han, W., Hellmann, A., and Lu, M., 2016. The impact of gender difference on the interpretation of uncertainty expressions. Asian Review of Accounting, 24 (2), 185–201. doi: 10.1108/ARA-06-2014-0073
  • Harris, C. R., Jenkins, M., and Glaser, D., 2006. Gender differences in risk assessment: why do women take fewer risks than men? Judgment and Decision Making, 1 (1), 48–63.
  • Haslam, S.A. and McGarty, C., 2003. Research Methods and Statistics in Psychology. London: Sage.
  • Hastie, R. and Dawes, R.M., 2010. Rational Choice in an Uncertain World: The Psychology of Judgment and Decision Making. 2nd ed. Thousand Oaks, CA: Sage Publications.
  • Henderson, J.M. and Hollingworth, A., 2003. Eye movements and visual memory: detecting changes to saccade targets in scenes. Perception & Psychophysics, 65 (1), 58–71. doi: 10.3758/BF03194783
  • Hogarth, R.M. and Einhorn, H.J., 1992. Order effects in belief updating: the belief adjustment model. Cognitive Psychology, 24 (1), 1–55. doi: 10.1016/0010-0285(92)90002-J
  • Holsanova, J., Holmberg, N., and Holmqvist, K., 2009. Reading information graphics: the role of spatial contiguity and dual attentional guidance. Applied Cognitive Psychology, 23 (9), 1215–1226. doi: 10.1002/acp.1525
  • Hooghiemstra, R., 2000. Corporate communication and impression management – new perspectives why companies engage in corporate social reporting. Journal of Business Ethics, 27 (1–2), 55–68. doi: 10.1023/A:1006400707757
  • Jarvenpaa, S.L., 1990. Graphical displays in decision making: the visual salience effect. Journal of Behavioral Decision Making, 3 (4), 247–262. doi: 10.1002/bdm.3960030403
  • Jones, M.J., 2011. The nature, use and impression management of graphs in social and environmental accounting. Accounting Forum, 35 (1), 75–89. doi: 10.1016/j.accfor.2011.03.002
  • Kennedy, J., 1993. Debiasing audit judgment with accountability: a framework and experimental results. Journal of Accounting Research, 31 (2), 231–245. doi: 10.2307/2491272
  • Kramer, S. and Maas, V.S., 2016. Selective attention to performance measures and bias in subjective performance evaluations: an eye-tracking study. Working Paper. Available at SSRN: http://ssrn.com/abstract=2457941.
  • Krull, G., Reckers, P.M.J., and Wong-on-Wing, B., 1993. The effect of experience, fraudulent signals and information presentation order on auditors’ beliefs. Auditing, 12 (2), 143–153.
  • Leary, M.R. and Kowalski, R.M., 1990. Impression management: a literature review and two-component model. Psychological Bulletin, 107 (1), 34–47. doi: 10.1037/0033-2909.107.1.34
  • Lee, T., 1994. The changing form of the corporate annual report. Accounting Historians Journal, 21 (1), 215–232.
  • Leivian, G.M., 1980. How to communicate financial data more efficiently. Management Accounting, 62 (1), 31–34.
  • Lurie, N.H. and Mason, C.H., 2007. Visual representation: implications for decision making. Journal of Marketing, 71 (1), 160–177. doi: 10.1509/jmkg.71.1.160
  • Matin, E., 1974. Saccadic suppression: a review and an analysis. Psychological Bulletin, 81 (12), 899–917. doi: 10.1037/h0037368
  • Merkl-Davis, D.M. and Brennan, N.M., 2007. Discretionary disclosure strategies in corporate narratives: incremental information or impression management? Journal of Accounting Literature, 26 (1), 116–194.
  • Merkl-Davis, D.M. and Brennan, N.M., 2011. A conceptual framework of impression management: new insights from psychology, sociology and critical perspectives. Accounting and Business Research, 41 (5), 415–437. doi: 10.1080/00014788.2011.574222
  • Messier, W.F. and Tubbs, R.M., 1994. Recency effects in belief revision: the impact of audit experience and the review process. Auditing, 13 (1), 57–72.
  • Monroe, G. and Ng, J., 2000. An examination of order effects in auditors’ inherent risk assessments. Accounting and Finance, 40 (2), 153–168. doi: 10.1111/1467-629X.00041
  • Payne, J.W. and Bettman, J.R., 2004. Walking with the scarecrow: the information processing approach to decision research. In: D.J. Koehler and N. Harvey, eds. Blackwell Handbook of Judgment and Decision Making. Malden, MA: Blackwell Publishing, 110–132.
  • Penrose, J.M., 2008. Annual report graphic use: a review of the literature. Journal of Business Communication, 45 (2), 158–180. doi: 10.1177/0021943607313990
  • Pinsker, R., 2007. Long series of information and nonprofessional investors’ belief revision. Behavioral Research in Accounting, 19 (1), 197–214. doi: 10.2308/bria.2007.19.1.197
  • Pinsker, R., 2011. Primacy or recency? A study of order effects when nonprofessional investors are provided a long series of disclosures. Behavioral Research in Accounting, 23 (1), 161–183. doi: 10.2308/bria.2011.23.1.161
  • Rayner, K., 1998. Eye movements in reading and information processing: 20 years of research. Psychological Bulletin, 124 (3), 372–422. doi: 10.1037/0033-2909.124.3.372
  • Rayner, K., 2009. Eye movements and attention in reading, scene perception, and visual search. Quarterly Journal of Experimental Psychology, 62 (8), 1457–1506. doi: 10.1080/17470210902816461
  • Rutledge, R.W., 1995. The ability to moderate recency effects through framing of management accounting information. Journal of Managerial Issues, 7 (1), 27–40.
  • Shavitt, T., Giogetta, C., Shani, Y., and Ferlazzo, F. 2010. Using an eye tracker to examine behavioral biases in investment tasks: an experimental study. Journal of Behavioral Finance, 11 (4), 185–194. doi: 10.1080/15427560.2010.526536
  • Stanton, P. and Stanton, J., 2002. Corporate annual reports: research perspectives used. Accounting, Auditing & Accountability Journal, 15 (4), 478–500. doi: 10.1108/09513570210440568
  • Stanton, P., Stanton, J., and Pires, G., 2004. Impressions of an annual report: an experimental study. Corporate Communications: An International Journal, 9 (1), 57–69. doi: 10.1108/13563280410516500
  • Thaler, R.H., Tversky, A., Kahneman, D., and Schwartz, A., 1997. The effect of myopia and loss aversion on risk taking: an experimental test. Quarterly Journal of Economics, 112 (2), 647–661. doi: 10.1162/003355397555226
  • Theis, J.C., Yankova, K., and Eulerich, M., 2012. Information order effects in the context of management commentary – initial experimental evidence. Journal of Management Control, 23 (2), 133–150. doi: 10.1007/s00187-012-0160-0
  • Thomas, L.E. and Lleras, A., 2007. Moving eyes and moving thought: on the spatial compatibility between eye movements and cognition. Psychological Bulletin & Review, 14 (4), 663–668. doi: 10.3758/BF03196818
  • Trotman, K.T. and Wright, A., 1996. Recency effects: task complexity, decision mode, and task-specific experience. Behavioral Research in Accounting, 8, 175–193.
  • Tuttle, B.M., Coller, M., and Burton, F.G., 1997. An examination of market efficiency: information order effects in a laboratory market. Accounting, Organizations and Society, 22 (1), 89–103. doi: 10.1016/S0361-3682(96)00026-8
  • Weber, E.U. and Hsee, C.K., 2000. Culture and individual judgment and decision making. Applied Psychology: An International Review, 49 (1), 32–61. doi: 10.1111/1464-0597.00005
  • Weber, E.U. and Morris, M.W., 2010. Culture and judgment and decision making: the constructivist turn. Perspectives on Psychological Science, 5 (4), 410–419. doi: 10.1177/1745691610375556
  • Weber, E.U., Blais, A., and Betz, N.E., 2002. A domain-specific risk attitude scale: measuring risk perceptions and risk behaviors. Journal of Behavioral Decision Making, 15 (4), 263–290. doi: 10.1002/bdm.414

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.