Internet financial reporting: The effects of information presentation format and content differences on investor decision making

2012 ◽  
Vol 28 (4) ◽  
pp. 1178-1185 ◽  
Author(s):  
Andrea Seaton Kelton ◽  
Robin R. Pennington
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Presentation Format ◽  
Information Presentation

The Effects of Information Presentation Format on Judgment and Decision Making: A Review of the Information Systems Research

2010 ◽  
Vol 24 (2) ◽  
pp. 79-105 ◽  
Author(s):  
Andrea Seaton Kelton ◽  
Robin R. Pennington ◽  
Brad M. Tuttle
Keyword(s):  
Decision Making ◽  
Information Systems ◽  
Judgment And Decision Making ◽  
Presentation Format ◽  
Future Research ◽  
Information Presentation ◽  
Accounting Information Systems ◽  
Systems Research ◽  
Information Systems Research ◽  
Prior Literature

ABSTRACT: This paper reviews the information systems and accounting information systems research on the effects of information presentation format on judgment and decision making. We limit our review to static (noninteractive) formats only, where the user cannot manipulate or change the characteristics of the task, including information presentation format. We provide a conceptual framework, describing the role of information presentation in individual decision making. Additionally, we develop an integrated model of information presentation research based upon the theory of cognitive fit, and use the model to summarize the prior literature and provide suggestions for future research.

An Analysis of the Demand for Reporting on Internal Control

2000 ◽  
Vol 14 (3) ◽  
pp. 325-341 ◽  
Author(s):  
Heather M. Hermanson
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Internal Control ◽  
Operational Definition ◽  
Financial Statement ◽  
Individual Investors ◽  
Internal Auditors ◽  
Additional Information ◽  
User Groups ◽  
Definition Of

The purpose of this study is to analyze the demand for reporting on internal control. Nine financial statement user groups were identified and surveyed to determine whether they agree that: (1) management reports on internal control (MRIC) are useful, (2) MRICs influence decisions, and (3) financial reporting is improved by adding MRICs. In addition, the paper examined whether responses varied based on: (1) the definition of internal control used (manipulated as broad, operational definition vs. narrow, financial-reporting definition) and (2) user group. The results indicate that financial statement users agree that internal controls are important. Respondents agreed that voluntary MRICs improved controls and provided additional information for decision making. Respondents also agreed that mandatory MRICs improved controls, but did not agree about their value for decision making. Using a broad definition of controls, respondents strongly agreed that MRICs improved controls and provided a better indicator of a company's long-term viability. Executive respondents were less likely to agree about the value of MRICs than individual investors and internal auditors.

scholarly journals How to Improve Sharia Accountability for Sovereign Sukuk in Indonesia

2020 ◽  
Vol 13 (1) ◽  
pp. 53
Author(s):  
Erny Arianty
Keyword(s):  
Decision Making ◽  
Human Resources ◽  
Financial Reporting ◽  
Analytical Hierarchy Process ◽  
The Third ◽  
Contract Structure ◽  
Hierarchy Process ◽  
Level Of Importance

<pre><em>The</em><em> study entitled How to Improve Sharia Accountability for Sovereign Sukuk in Indonesia aims to analyze </em><em>the factor that has the highest level of importance</em><em> in realizing sharia accountability.</em> <em>The analysis of this research is conducted by applying</em><em>  </em><em>Analytical Hierarchy Process (AHP) approach </em><em>with a hierarchy structure consisting of the first level, namely objectives, sharia accountability for Sovereign Sukuk/Sovereign Sharia Securities (SBSN), then the second level is shariah accountability parameters, consist of structural contract (akad) SBSN, the use of SBSN funds by maqashid sharia, and SBSN accounting and financial reporting. Each criterion is determined by sub-criteria, which are the third level. The last level is the supporting factors for the realization of sharia accountability for SBSN. </em><em>The results showed that human resources competency factor had the highest importance </em><em>level in realizing the sharia accountability for the use of the contract structure (aqad) SBSN parameter, the supervisory function factor had the highest importance level for the parameters of using SBSN funds following the shariahmaqashid, and the decision making authority factor had the highest importance level for the parameters of accounting and financial reporting.  As for the results of the level of importance of the parameters, the parameter of the use of the contract structure has the highest importance level among other parameters. </em></pre>

Advancing Financial Reporting in the Age of Technology: An Interview with Robert H. Herz

2021 ◽  
Vol 18 (2) ◽  
pp. 117-124
Author(s):  
Robert H Herz ◽  
Duo Pei
Keyword(s):  
Decision Making ◽  
Big Data ◽  
Financial Reporting ◽  
Main Idea ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Financial Accounting Standards Board ◽  
Business Reporting ◽  
Reporting Process ◽  
Part Time

ABSTRACT This paper is based on an interview on January 9, 2020, with Robert H. (Bob) Herz, the former two-term chairman of the Financial Accounting Standards Board, on how the environment for business reporting has evolved and how it may continue to evolve. Bob Herz has also held decision-making positions as a part-time member of the IASB and on the board of the SASB. In this interview, we discuss a pragmatic reporting model suited to the era of Big Data and technology. We also explain the different interests of the reporting process, including the standard-setters, preparers, auditors, and users. The main idea of this paper focuses on how to incorporate Big Data and technology into reporting models working within the current framework and needs of the stakeholders. We then outline several use cases that illustrate a refined reporting model using Big Data and technology.

Group Judgment and Decision Making in Auditing: Research in the Time of COVID-19 and Beyond

2021 ◽  
Author(s):  
Tim D. Bauer ◽  
Kerry A. Humphreys ◽  
Ken T. Trotman
Keyword(s):  
Decision Making ◽  
Virtual Teams ◽  
Financial Reporting ◽  
Audit Committee ◽  
Judgment And Decision Making ◽  
Team Members ◽  
Group Judgment ◽  
Audit Firms ◽  
Research Questions ◽  
New Research

The COVID-19 pandemic has fundamentally changed the ways auditors work and interact with team members and others in the financial reporting process. In particular, there has been a move away from face-to-face interactions to the use of virtual teams, with strong indications many of these changes will remain post-pandemic. We examine the impacts of the pandemic on group judgment and decision making (JDM) research in auditing by reviewing research on auditor interactions with respect to the review process (including coaching), fraud brainstorming, consultations within audit firms, and parties outside the audit firm such as client management and the audit committee. Through the pandemic lens and for each auditor interaction, we consider new research questions for audit JDM researchers to investigate and new ways of addressing existing research questions given these fundamental changes. We also identify potential impacts on research methods used to address these questions during the pandemic and beyond.

The Limitations of Financial Reporting on Innovation and Its Value-Relevance for the Investor's Decision-Making Process

2019 ◽  
pp. 390-418
Author(s):  
Francisco Leote ◽  
Ana Damião
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Value Relevance ◽  
Financial Statements ◽  
Individual Characteristics ◽  
Decision Making Process ◽  
Accounting Systems ◽  
Financial Factors ◽  
The Individual ◽  
Industry Sectors

This chapter aims to present some limitations of financial reporting on innovation with an impact on the investor's decision-making process. In order to do so, the authors show how accounting recognizes and measures innovation factors: the intangibles. Based on the literature, the authors discuss how the value relevance of financial reporting on innovation is conditioned by non-financial factors. The impacts of the adoption of IFRSs, the effect of the industry sectors and the effect of the individual characteristics of the different countries on the value relevance of the intangible assets are analyzed. The literature suggests a decrease in the value relevance of financial statements due to the manner in which intangibles are recognized and measured in accounting. However, financial reporting on innovation is value relevant to the investor's decision-making and is conditioned by non-financial factors. Value relevance differs among different industry sectors, between different countries and is conditioned by the accounting systems used in the preparation of the financial information.

Why do Restatements Decrease in a Clawback Environment? An Investigation into Financial Reporting Executives' Decision-Making during the Restatement Process

2015 ◽  
Vol 90 (6) ◽  
pp. 2515-2536 ◽  
Author(s):  
Jonathan S. Pyzoha
Keyword(s):  
Decision Making ◽  
Executive Compensation ◽  
Financial Reporting ◽  
Financial Statements ◽  
Data Availability ◽  
Archival Studies ◽  
Key Factors ◽  
Ex Post ◽  
Auditor Quality

ABSTRACT Prior archival studies find that firms that voluntarily adopted clawback policies have experienced a reduction in restatements. I experimentally examine this outcome by investigating the influence of two key factors (i.e., executive compensation structure and auditor quality) on financial reporting executives' (hereafter, “executives”) decision-making regarding a proposed restatement that will lead to a clawback of their incentives. I find that executives (i.e., CFOs, controllers, and treasurers) facing a lower quality auditor are less likely to agree with amending prior financial statements when a higher proportion of their pay is incentive-based. However, this tendency is reduced when executives face a higher quality auditor, indicating that higher quality auditors can act as effective monitors. My results identify an ex post unintended consequence of clawback regulation that could at least partially offset the benefits of the ex ante deterrent effects of clawbacks, and that could contribute to findings of less frequent restatements when clawback policies are in place. I discuss potential implications regarding the role of executives during restatement decisions and auditors' risk assessments in a clawback environment. Data Availability: Data are available from the author upon request.

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