The Effects of Visualization and Interactivity on Calibration in Financial Decision-Making

2013 ◽  
Vol 26 (1) ◽  
pp. 25-58 ◽  
Author(s):  
Fengchun Tang ◽  
Traci J. Hess ◽  
Joseph S. Valacich ◽  
John T. Sweeney
Keyword(s):  
Decision Making ◽  
Visual Representations ◽  
Decision Makers ◽  
Financial Data ◽  
Data Availability ◽  
Financial Decision Making ◽  
Interactive Visualizations ◽  
Financial Decision ◽  
Informational Cues ◽  
The Impact

ABSTRACT With the increased use of XBRL, financial data are readily available in a universal format, enabling users to dynamically render data with a variety of visual, interactive representations. However, the impact of these interactive visual representations on financial decision-making has received little attention. Further, decision-making research suggests that the presentation of a task (i.e., presentation format) can influence decision-making outcomes such as accuracy, confidence, and the calibration between accuracy and confidence. This study examines how visualization and interactivity affect accuracy, confidence, and calibration in a financial decision-making context. Decision-makers are typically overconfident, and this research proposes that visualization and interactivity provide more informational cues, which can actually further increase overconfidence and reduce calibration in some contexts. An experiment conducted with 157 participants supports the prediction that visualization and interactivity features can increase decision-maker overconfidence. However, interactive visualization, when both interface features are present, increases confidence while also increasing accuracy. As a result, when interactivity and visualization are offered individually, decision-makers are less calibrated, but when both features are offered, decision-makers are more calibrated. Implications for users and designers of interactive visualizations with financial data are discussed. Data Availability: Data are available from the authors upon request.

Social and economic empowerment of women through financial inclusion: empirical evidence from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mukesh Pal ◽  
Hemant Gupta ◽  
Yogesh C. Joshi
Keyword(s):  
Decision Making ◽  
Social Welfare ◽  
Financial Inclusion ◽  
Rural India ◽  
Women Empowerment ◽  
Bank Account ◽  
Content Type ◽  
Financial Decision Making ◽  
Financial Decision ◽  
The Impact

PurposeWomen empowerment becomes an important policy discussion in development economics and modernization theory. The empowerment of women can lead to an increase in the quality viz-a-viz the capacity of human resources accessible for economic development. The purpose of this study is to evidence the impact of social and economic dimensions on women empowerment through financial inclusion in rural India.Design/methodology/approachTo reveal the research objective, the study has utilized a primary survey of women respondents from the Gujarat state of India by a simple random sampling method and applied a logistic regression approach to identify the relationship between the need of a bank account (determinant of financial inclusion) as a dependent variable and social and economic dimensions of women empowerment such as earning status, participation in financial decision-making, recipient of social welfare schemes and perception towards the safety of saving as independent variables.FindingsThe results of this study show that earning status, participation in financial decision-making at household level and recipient of social welfare schemes by women have a significant impact on women empowerment through financial inclusion; however, safety of their savings is observed as an insignificant variable, yet the odd value is very high (2.437) in the present study.Originality/valueThe present study is the first of its kind to examine the social and economic status of women and its impact on their requirement of a formal bank account for the overall empowerment of women in rural India.

scholarly journals Impact of financial statements for financial decision-making

2020 ◽  
Vol 5 (2) ◽  
Author(s):  
Saddeq Abdulshakour
Keyword(s):  
Decision Making ◽  
Relative Weight ◽  
Financial Statements ◽  
Decision Makers ◽  
Financial Statement ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Vision 2030 ◽  
Study Population ◽  
Financial Decision

The study aimed to know the effects of analysis of financial statements on financial decisions, and the degree of benefit from them, and to identify what financial statements, what is its importance for the institutions within the framework of the Kingdom's Vision 2030 of ideas and trends, and to identify the contribution of financial statement analysis to financial decision-making. The study was based on the descriptive and analytical approach, and the study population consisted of all financial decision makers. The study was based on a simple random method (70) of financial decision makers. The study was based on the questionnaire and consisted of the following axes (financial statements in companies, financial decision-making, the effects of analysis of financial statements on financial decision-making). The study came out with a number of results, the most important of which are: There is approval by the respondents to all paragraphs of the first axis "financial statements in companies", with a relative weight of 82.8%. There is an agreement by the respondents on all paragraphs of the second axis "making financial decisions in companies", with a relative weight of 81.3%. There is strong approval by the respondents on all paragraphs of the third axis "the effects of analysis of financial statements on financial decision-making", with a relative weight of 86.4%. The financial statements are a key tool to know the financial position of the company, so they must be accurate and reliable before being published by management. The lack of credibility in the financial statements leads to mistrust in the company by investors, and does not give them the possibility to diagnose and make sound decisions. In light of the previous results, the study recommended the following: • Organizing several forums, conferences and forums to clarify the mechanism of preparing the financial statements and how to analyze them, and the need to raise awareness of financial decision makers about the importance of financial statements in the financial decision-making process.

scholarly journals The impact of stress on financial decision-making varies as a function of depression and anxiety symptoms

2014 ◽  
Author(s):  
Oliver J Robinson ◽  
Rebecca Bond ◽  
Jonathan P Roiser
Keyword(s):  
Decision Making ◽  
Anxiety Disorders ◽  
Trait Anxiety ◽  
Anxiety Symptoms ◽  
Financial Decision Making ◽  
Individual Vulnerability ◽  
Mood And Anxiety Disorders ◽  
Financial Decision ◽  
The Impact ◽  
Selection Of

Stress can precipitate the onset of mood and anxiety disorders. This may occur, at least in part, via a modulatory effect of stress on decision-making. Some individuals are, however, more resilient to the effects of stress than others. The mechanisms underlying such vulnerability differences are nevertheless unknown. In this study we attempted to begin quantifying individual differences in vulnerability by exploring the effect of experimentally induced stress on decision-making. Threat of unpredictable shock was used to induce stress in healthy volunteers (N=47) using a within-subjects, within-session design, and its impact on a financial decision-making task (the Iowa Gambling Task) was assessed alongside anxious and depressive symptomatology. As expected, participants learned to select advantageous decks and avoid disadvantageous decks. Importantly, we found that stress provoked a pattern of harm-avoidant behaviour (decreased selection of disadvantageous decks) in individuals with low levels of trait anxiety. By contrast, individuals with high trait anxiety demonstrated the opposite pattern: stress-induced risk-seeking (increased selection of disadvantageous decks). These contrasting influences of stress depending on mood and anxiety symptoms might provide insight into vulnerability to common mental illness. In particular, we speculate that those who adopt a more harm-avoidant strategy may be better able to regulate their exposure to further environmental stress, reducing their susceptibility to mood and anxiety disorders. The threat of shock paradigm we employed might therefore hold promise as a ‘stress-test’ for determining individual vulnerability to mood and anxiety disorders.

Financial Surrogate Decision Making: Lessons from Applied Experimental Philosophy

2016 ◽  
Vol 19 ◽  
Author(s):  
Adam Feltz
Keyword(s):  
Decision Making ◽  
Experimental Philosophy ◽  
Decision Makers ◽  
Surrogate Decision Making ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Recent Debate ◽  
Surrogate Decision Makers ◽  
Financial Decision ◽  
Surrogate Decision

AbstractAn estimated 1 in 4 elderly Americans need a surrogate to make decisions at least once in their lives. With an aging population, that number is almost certainly going to increase. This paper focuses onfinancialsurrogate decision making. To illustrate some of the empirical and moral implications associated with financial surrogate decision making, two experiments suggest that default choice settings can predictably influence some surrogate financial decision making. Experiment 1 suggested that when making hypothetical financial decisions, surrogates tended to stay with default settings (OR = 4.37, 95% CI 1.52, 12.48). Experiment 2 replicated and extended this finding suggesting that in a different context (OR = 2.27, 95% CI 1.1, 4.65). Experiment 2 also suggested that those who were more numerate were less likely to be influenced by default settings than the less numerate, but only when the decision is whether to “opt in” (p= .05). These data highlight the importance of a recent debate about “nudging.” Defaults are common methods to nudge people to make desirable choices while allowing the liberty to choose otherwise. Some of the ethics of using default settings to nudge surrogate decision makers are discussed.

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