Liza, Alvia and Jogiyanto, Hartono and Syaiful, Ali and Ratna, Nurhayati (2020) Information Disclosure Readability, Cognitive Style, and Investment Decision Making: A Web Experimental Study. Advances in Economics, Business and Management Research, volume 135, 135 (1). pp. 135-138.

AICMBS-Information Disclosure Readability, Cognitive Style, and Investment Decision Making A Web Experimental Study.pdf

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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.

Item Type: Article
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Fakultas Ekonomi dan Bisnis (FEB) > Prodi Akuntansi
Depositing User: LIZA ALVIA
Date Deposited: 20 Nov 2020 01:20
Last Modified: 20 Nov 2020 01:20

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