The informational role of imagery in financial decision making: A new approach

Joshua Ronen, Tavy Ronen, Zhou, Mi (Jamie) and Susan E. Gans

Journal of Behavioral and Experimental Finance, 2023, vol. 40, issue C

Abstract: This study develops a novel approach to identify characteristics of images and a combination thereof (expressiveness) that are likely to and found to be associated with investment decisions. We also create new methodologies to quantify these characteristics. We further develop a new machine learning-based measure of informativeness called additivity, which is the degree to which the images convey information beyond the content embedded in textual narratives; additivity is significantly associated with funding beyond other image characteristics. We also address the causal impact of image characteristics using the onset of COVID-19 as an exogenous shock and a difference-in-difference methodology. Our exploration of the implications for financing decisions goes beyond the existing imagery studies within this developing field.

Keywords: Impression management; Visual characteristics; Image informativeness; Equity crowdfunding; Image–text interactions; Machine learning; Natural language processing; Computer vision; Artificial intelligence (search for similar items in EconPapers)
JEL-codes: G0 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:40:y:2023:i:c:s2214635023000655

DOI: 10.1016/j.jbef.2023.100851

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