The Effect of changes in the Presentation Pattern of Financial Statements (Proposed by Securities Exchange Organization the Auditing Organization) on Investors’ judgment and Decision Making: a Quasi-Experimental Approach

Document Type : Original Article

Authors
vahid eftekhari 1
saber Sheri Anaghiz 2
Mohammad Hassan Ebrahimi Sarv Oly 3
Qasem Bolo 4
1 PhD Candidate in Accounting, Allameh Tabataba’i University, Tehran, Iran
2 Associate Professor of accounting, Faculty of management and accounting . Allameh Tabatabai University.
3 Associate professor of Financial Management, Faculty of Accounting and Management, Allameh Tabatabai university.
4 Associate Professor of accounting, Faculty of management and accounting. Allameh Tabatabai University.
Abstract
The purpose of this study is to investigate the effect of changing the presentation of financial statements on the judgment and decision of investors using a quasi-experimental approach According to this theory, the way information is presented can affect the cognitive effort of information users. The research hypotheses are based on cognitive load theory. To examine this issue, the pattern of providing financial statement information has been changed based on the new pattern proposed by the Securities Exchange Organization and the participants' answers to the research questions based on the new financial statements have been compared with the previous presentation pattern. Subjects include people with accounting and financial experience and at least a bachelor's degree in accounting or various management majors. Due to the non-normality of the data, Mann Whitney's nonparametric test was used. The results of this test show that the proposed new presentation model has influenced the judgment and decision of investors by reducing cognitive effort.
Keywords
Judgment and decision making
cognitive effort
the presentation pattern of financial statement information
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