How graphical vividness and interactivity in non-financial presentations influence nonprofessional investors

Yibo James Zhang and Uday Murthy

International Journal of Accounting Information Systems, 2024, vol. 54, issue C

Abstract: We investigate how graphical vividness and interactivity in displays of non-financial information following poor financial performance affect the judgments of nonprofessional investors. Leveraging the Hamilton and Winchel (2019) model of dual-process theories of persuasion in financial reporting, we hypothesize and find that graphical vividness and interactivity jointly influence nonprofessional investors. Despite negative news in financial information, investors perceive a firm’s performance more positively when favorable non-financial information is presented more vividly and with a user interactivity function. Finally, contributing to theory, we find that effort positively mediates the effects of user interactivity on nonprofessional investors’ judgments and decisions. The results lend empirical support to the Hamilton and Winchel (2019) model of dual-process theories of persuasion in financial reporting and have implications for designers of investor relations websites, investor groups consuming this information, and regulators concerned about the need for standards in the presentation of non-financial information in annual reports.

Keywords: Dual-process theories of persuasion; User interactivity; Graphical vividness; Effort; Non-financial data; Digital annual reports; Investor perceptions (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ijoais:v:54:y:2024:i:c:s1467089524000241

DOI: 10.1016/j.accinf.2024.100691

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