The Effect of iXBRL Formatted Financial Statements on the Effectiveness of Managers’ Decisions when Making Inter-Firm Comparisons

2020 ◽  
Author(s):  
Hyun Woong (Daniel) Chang ◽  
Steven Kaszak ◽  
Peter C. Kipp ◽  
Jesse C. Robertson
Keyword(s):  
Decision Making ◽  
Cognitive Load ◽  
Mediation Analysis ◽  
Information Search ◽  
Cognitive Load Theory ◽  
Financial Statements ◽  
Moderated Mediation ◽  
Financial Information ◽  
Load Theory ◽  
The Relationship

Following the SEC’s mandate for Inline XBRL (iXBRL) formatted financial filings, we experimentally investigate the effects of iXBRL filings and tag type (matching or non-matching) on managers’ decisions. iXBRL filings facilitate information search and information match by allowing users to view XBRL data in HTML filings, while XBRL filings facilitate information search only because they do not include this integration with human-readable HTML filings. Matching tags consistently tag data across firms and disclosures, which should facilitate inter-firm comparisons and improve decision making relative to non-matching tags. Drawing on cognitive load theory, we find that managers make more (less) effective decisions when presented with financial information formatted in iXBRL (XBRL) and when tags match (do not match). Mediation analysis reveals that managers’ cognitive load mediates the relationship between iXBRL disclosure format and decision effectiveness, but only for non-matching tags, consistent with moderated-mediation. We offer implications for practice and research suggestions.

Assessment of Cognitive Load in Multimedia Learning Using Dual-Task Methodology

2002 ◽  
Vol 49 (2) ◽  
pp. 109-119 ◽  
Author(s):  
Roland Brünken ◽  
Susan Steinbacher ◽  
Jan L. Plass ◽  
Detlev Leutner
Keyword(s):  
Cognitive Load ◽  
Dual Task ◽  
Cognitive Load Theory ◽  
Multimedia Learning ◽  
Learning Systems ◽  
Learning Materials ◽  
New Approach ◽  
Direct Assessment ◽  
Load Theory ◽  
Audiovisual Presentation

Abstract. In two pilot experiments, a new approach for the direct assessment of cognitive load during multimedia learning was tested that uses dual-task methodology. Using this approach, we obtained the same pattern of cognitive load as predicted by cognitive load theory when applied to multimedia learning: The audiovisual presentation of text-based and picture-based learning materials induced less cognitive load than the visual-only presentation of the same material. The findings confirm the utility of dual-task methodology as a promising approach for the assessment of cognitive load induced by complex multimedia learning systems.

Investigating the Value of Process Books in the Design Process Using Cognitive Load Theory

2013 ◽  
Author(s):  
Lori B. Stone ◽  
Abigail Lundquist ◽  
Stefan Ganchev ◽  
Nora Ladjahasan
Keyword(s):  
Cognitive Load ◽  
Design Process ◽  
Cognitive Load Theory ◽  
Load Theory

scholarly journals Subjective Knowledge, Perceived Risk, and Information Search when Purchasing a Franchise: A Comparative Exploration from Australia

2021 ◽  
Vol 14 (8) ◽  
pp. 338
Author(s):  
Peter Balsarini ◽  
Claire Lambert ◽  
Maria M. Ryan ◽  
Martin MacCarthy
Keyword(s):  
Decision Making ◽  
Information Search ◽  
Perceived Risk ◽  
Traditional Approach ◽  
Growth Strategy ◽  
Local Market ◽  
Significant Information ◽  
Subjective Knowledge ◽  
Decision Making Processes ◽  
The Relationship

Franchising has long been a method by which organizations seek to expand and facilitate local market development. However, franchising as a growth strategy can often be hampered by lack of suitable franchisees. To mitigate this shortage, some franchisors have engaged in recruiting franchisees internally from the ranks of their employees in addition to the traditional approach of recruiting franchisees externally. Predominantly franchisees are individuals rather than corporations and thus purchasing a franchise should most commonly be characterized as a consumer acquisition. To explore the relationship between subjective knowledge, perceived risk, and information search behaviors when purchasing a franchise qualitative interviews were conducted with franchisees from the restaurant industry. Half of these respondents were externally recruited having never worked for the franchisor and half were internally recruited having previously been employees of the franchisor. The external recruits expressed a strong desire to own their own business and engaged in extensive decision-making processes with significant information search when purchasing their franchises. Contrastingly, the internal recruits expressed a strong desire to be their own boss and engaged in limited, bordering on habitual decision-making processes with negligible information search when acquiring their franchises. The results reveal that differences in subjective knowledge and perceived risk appear to significantly impact the extent of information search between these two groups. A model of the relationship between subjective knowledge, perceived risk and information search in the purchasing of a franchise is developed that reconciles these findings. The findings also have practical implications for franchisors’ franchisee recruiting efforts which are integral to their capacity to develop local markets.

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