Information Disclosure Readability, Cognitive Style, and Investment Decision Making: A Web Experimental Study
- 10.2991/aebmr.k.200410.021How to use a DOI?
- disclosure, readability, cognitive style, investment decision
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  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.
- © 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/).
Cite this article
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 -