The Effect of Providing Integrated Information of Financial statements on on Investors’ judgment and Decision Making: a Quasi-Experimental Approach

Document Type : Original Article

Authors

1 Associate Professor of accounting, Faculty of management and accounting . Allameh Tabatabai University

2 Associate professor of Financial Management,Faculty of Accounting and Management,Allameh Tabatabei university

Abstract

The purpose of this research is to investigate the effect of the presentation of financial statement information on the judgment and decision-making process according to the role of the integrity of financial items using a quasi-experimental approach. The hypotheses of the research were developed based on the theory of cognitive load, based on this theory, the way information is presented can affect the cognitive effort of information users. In order to check the hypotheses of this research, according to the limited attention of investors, the accrual anomaly items and the functional fixtion of profit, the within-subject method was used. In this research, the current presentation pattern of financial statements has been compared with the presentation pattern along with the disclosure of additional information of profit elements under the profit and loss statement (which is called the integrated pattern in this research). Analysis of variance and Mann-Whitney test were used to analyze the data. The results of data analysis show that the model of integrated presentation has an effect on the judgment and decision of investors by reducing cognitive effort and this model improves the judgment and decision of investors.
Scientific journal of motaher auditing studies
Volume 1, Issue 2 - Serial Number 2
October 2023
Pages 41-70

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