Information Disclosure Readability, Cognitive Style, and Investment Decision Making: A Web Experimental Study

DOI

10.2991/aebmr.k.200410.021How to use a DOI?

Keywords

disclosure, readability, cognitive style, investment decision

Abstract

The purpose of this research is to investigate the impact of disclosure readability and cognitive style on investment decision making. Using processing fluency theory and cognitive style model the researchers extend [1] by considering how individual cognitive style has interaction affect on disclosure readability and investment information searching and decision making. In human information processing, an individual cognitive style is considered before making a decision; however, it is rarely investigated by previous research. Using web-based experiment on 86 accounting and management master program as an investor; the researchers present those investors with two level firm’s internet financial reporting readability (high/low), and measure investor cognitive using cognitive style index (analytic/intuitive). Consistent with our prediction, the researchers find that investor searching behavior is more sensitive to outside information when internet financial reporting less readable, meanwhile the interaction with cognitive style not supported. Furthermore, the researchers found evidence that individual cognitive style is moderating disclosure readability and investor decision. This study gives both academic and practice contribution. Academically, it broadens ones understanding of disclosure readability and cognitive style and provides opportunities for new avenues of research in decision making. In practice, it gives management early warning for being careful in choosing firm disclosure strategy.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Liza Alivia
AU  - Jogiyanto Hartono
AU  - Syaiful Ali
AU  - Ratna Nurhayati
PY  - 2020
DA  - 2020/04/13
TI  - Information Disclosure Readability, Cognitive Style, and Investment Decision Making: A Web Experimental Study
BT  - Proceedings of the 3rd Asia Pacific International Conference of Management and Business Science (AICMBS 2019)
PB  - Atlantis Press
SP  - 133
EP  - 138
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200410.021
DO  - 10.2991/aebmr.k.200410.021
ID  - Alivia2020
ER  -