The use of visual presentations for integrated reports in the investment decision-making process

Arif Widyatama and I Made Narsa

Journal of Applied Accounting Research, 2022, vol. 24, issue 1, 106-133

Abstract: Purpose - This study aims to identify the effect of the format of a presentation and the form of information on the decision-making process of non-professional investors in Indonesia. Investor behaviors, including acquisition, evaluation, weighting, judgment, and allocation decisions, are explained explicitly after taking a look at the form of the information and the way it is conveyed in various presentation formats. Design/methodology/approach - This research used web-based experiments. It used a 2 × 2 between-subjects design. Eighty-nine selected students acted as surrogate investors. They were provided with company performance reports presented in different report formats (integrated versus non-integrated) and different forms of information (visual versus descriptive). Findings - The results showed that information, when presented visually, is more influential on investment allocation decisions in Indonesia. In addition, the result of the post hoc test indicated that integrated reports are more influential than non-integrated reports. Research limitations/implications - The results of this study have significant implications for companies that publish financial and non-financial disclosures. The reports are required to be presented in an integrated and visual form in order to increase the investors' level of understanding so they can comprehend a company's performance holistically. Practical implications - It is necessary for Indonesian policymakers to create regulations regarding the presentation of financial and non-financial information in an integrated and visual way. Originality/value - This study fills a gap in the literature on integrated reports by showing that the visualization of information in such reports increases the level of understanding that underpins investment decision-making. Furthermore, this study contributes to cognitive load theory by providing evidence that the kind of presentation of information that facilitates people's cognitive ability is not only in the narrative form but visual presentation also works.

Keywords: Integrated report; Visual presentation; Comprehensive decision-making; Investment (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jaarpp:jaar-09-2021-0238

DOI: 10.1108/JAAR-09-2021-0238

Access Statistics for this article

Journal of Applied Accounting Research is currently edited by Associate Professor Orthodoxia Kyriacou

More articles in Journal of Applied Accounting Research from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().