Information choice within disclosures, mobile devices, and investor estimates of fundamental value

Grant, Stephanie M

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https://hdl.handle.net/2142/90756 Copy

Description

Title

Information choice within disclosures, mobile devices, and investor estimates of fundamental value

Author(s)

Grant, Stephanie M

Issue Date

2016-04-14

Director of Research (if dissertation) or Advisor (if thesis)

Elliott, W. Brooke

Doctoral Committee Chair(s)

Elliott, W. Brooke

Committee Member(s)

• Hobson, Jessen L.
• Peecher, Mark E.
• White, Tiffany B.

Department of Study

Accountancy

Discipline

Accountancy

Degree Granting Institution

University of Illinois at Urbana-Champaign

Degree Name

Ph.D.

Degree Level

Dissertation

Keyword(s)

• information choice
• mobile technology
• information processing costs
• investment decisions
• bounded rationality

Abstract

I examine how information choice within financial disclosures interacts with the screen size used to view the disclosure (traditional computer or small mobile device size) to influence investors' estimates of fundamental value. One proposed solution to concerns of investors’ increasing information processing costs is providing information choice within financial disclosures, meaning investors have the flexibility to choose the sections and order of information to read within the disclosure. However, theory suggests processing costs could increase, rather than decrease, if the disclosure is viewed on a smaller screen mobile device, which is an emerging technology used by investors. Consistent with predictions, results of an experiment show that high information choice positively affects investors’ effort and information integration when estimating fundamental value if the disclosure is viewed on a traditional screen. Conversely, high information choice negatively affects investors’ effort and information integration if viewed on a small screen. These findings suggest screen size could be an important moderator of some disclosure presentation effects, which is increasingly important as more investors use mobile devices to access, read, and trade on financial information. My findings also caution firms and regulators about expanding the use of disclosures providing information choice without considering the screen size used to access the disclosure.

Graduation Semester

2016-05

Type of Resource

text

Permalink

http://hdl.handle.net/2142/90756

Copyright and License Information

Copyright 2016 Stephanie Grant

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