The Effects of Information Disaggregation and Financial Statement Interactivity on Judgments and Decisions of Nonprofessional Investors

2015 ◽  
Vol 30 (3) ◽  
pp. 99-118 ◽  
Author(s):  
Andrea Seaton Kelton ◽  
Uday S. Murthy
Keyword(s):  
Cognitive Load ◽  
Information Overload ◽  
Financial Information ◽  
Data Availability ◽  
Internet Technology ◽  
Financial Statement ◽  
Negative Effects ◽  
Financial Reports ◽  
Web Based ◽  
Nonprofessional Investors

ABSTRACT Despite recent advances in Internet reporting technologies and calls for the increased reporting of disaggregated financial information, extant accounting research has not examined the potential positive and negative effects of providing disaggregated information using interactive web-based financial statements. In an experiment with nonprofessional investors, we investigate whether an Internet technology that provides investors control over the viewing of disaggregated financial information improves investment-related judgments and decisions and whether such effects depend on the utility of the disaggregation. In support of the notion that interactivity mitigates information overload, we find some evidence that the use of the drilldown capability is associated with a decrease in investors' perceived cognitive load. Results also show that investors using a drilldown capability are less susceptible to earnings fixation compared to investors viewing the disaggregation without the drilldown feature. However, we also find that in some circumstances financial statement disaggregation may not be beneficial to investors and that the resultant increase in cognitive load may outweigh any benefits of financial statement interactivity. These results have important and timely implications for standard setters considering whether to require increased disaggregation in financial statement reporting and companies seeking to enhance the usefulness of their web-based financial reports. JEL Classifications: C91; G11; G18; M41. Data Availability: Contact the authors.

scholarly journals SISTEM INFORMASI AKUNTANSI ARUS KAS PADA DINAS PERHUBUNGAN KABUPATEN KENDAL MENGGUNAKAN METODE ACCRUAL BASIS

2021 ◽  
Vol 4 (2) ◽  
pp. 215-224
Author(s):  
M Munifah ◽  
Edy Siswanto ◽  
Tedy Wahyu Pramuditya
Keyword(s):  
Information System ◽  
Data Processing ◽  
Financial Reporting ◽  
Cash Flows ◽  
Financial Information ◽  
Financial Statement ◽  
Financial Reports ◽  
Accounting Information System ◽  
Web Based ◽  
Financial Transactions

The financial recording system at the Kendal Department of Transportation is still using a manual system, meaning that all transaction activities that occur are only written in bookkeeping, and do not yet have a special application used in data processing and financial reporting. Prone to cause loss of transaction data thus hampering the reporting process. In addition, it is difficult to find financial data on cash receipts and disbursements due to the unavailability of an accessible web-based financial information system. The Kendal Regency Transportation Office needs an application that can be used in data processing and financial statement presentation and displays financial reports quickly, effectively and efficiently when needed and makes it easier to obtain financial information at the Kendal Regency Transportation Office. The application of a cash flow accounting information system at the Kendal Regency Transportation Office has achieved the desired goal, namely to simplify the process of recording cash financial transactions so that the use of cash management time is more efficient and presents financial reports of income, expenses and cash flows quickly, precisely and accurately.

scholarly journals How CFO’s communicate financial information - A pedagogical task in theory and practice

2013 ◽  
Vol 3 (1) ◽  
pp. 162
Author(s):  
Krister Bredmar
Keyword(s):  
Social Context ◽  
Oral Presentation ◽  
Theory And Practice ◽  
Financial Information ◽  
Financial Reports ◽  
Web Based ◽  
The Core ◽  
The Social ◽  
Oral Presentations

An important result when communicating is to gain a deeper understanding and that meaning is created by the reciever of that which is communicated by the transmitter. This can in a way be described as the core of the pedagogical communication. The premise of this study is that the pedagogical communication can be understood and explained by means of the financial reports (1), oral presentation (2), using concepts and illustrations (3) and by the social context, the group where the communication takes place (4). The theoretical areas that form the basis of the first question in this study, how the communication can be designed, are based on these four areas. In a second part 111 CFOs in Swedish municipalities responded, via a web-based questionnaire, how they work with these areas. The result shows that they are largely working with several of the pedagogical areas, such as in the financial reports and oral presentations but that there are also areas such as the social context and the group's importance in the pedagogical communication that are not as developed. Although much is already working well, there are areas that can be developed to get the pedagogical communication of financial information to work even better.

scholarly journals Exploring the Inescapable Suffering Among Postgraduate Researchers

2021 ◽  
Vol 17 (1) ◽  
pp. 19-41
Author(s):  
Nabil Hasan Al-Kumaim ◽  
Siti Hasnah Hassan ◽  
Muhammad Salman Shabbir ◽  
Abdulwahab Ali Almazroi ◽  
Hussein Mohammed Abu Al-Rejal
Keyword(s):  
Information Overload ◽  
Research Performance ◽  
Research Work ◽  
Deep Understanding ◽  
Internet Technology ◽  
Negative Effects ◽  
Focus Group Interviews ◽  
Postgraduate Students ◽  
Face To Face ◽  
Group Interviews

This study aims to get a deep understanding of the causes, effects, and remedies of information overload (IO) phenomenon among postgraduate scholars in the era of advanced internet technology. In-depth semi-structured face-to-face interviews and focus group interviews were implemented. Majority of the participants in this study exposed that IO represents real inescapable suffering that severely affects their research performance in different stages of their research. Time-consuming, cost, inferior research work, and poor personal health, isolation, low level of creativity and productivity are some of the major drawbacks resulted from IO. The collected data were thematically analysed using NVivo 12 software; the results were introduced five main themes that described information overload's forms, causes, consequences, and the ways to overcome IO phenomenon. Some practical insights and implications were provided to the decision-makers and professionals in higher education institutions to manage information overload and to reduce its negative effects among postgraduate students.

scholarly journals Effects of Increased Reporting Frequency on Nonprofessional Investors' Earnings Predictions

2011 ◽  
Vol 24 (1) ◽  
pp. 91-107 ◽  
Author(s):  
Terence J. Pitre
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Historical Data ◽  
Seasonal Pattern ◽  
Data Availability ◽  
Financial Reports ◽  
Nonprofessional Investors ◽  
Recency Effects ◽  
Primacy Effects ◽  
Reporting Frequency

ABSTRACT More frequent financial reporting has been a topic of debate for many years. However, little evidence exists about the possible effects of more frequent reporting on investors' decision making. Using a between-subjects experiment, this study analyzes how altering the timing or frequency of earnings reports—weekly, as opposed to quarterly, reports—affects the accuracy and dispersion of earnings predictions by nonprofessional investors. This is important, since regulators have identified nonprofessionals as a significant audience for financial reports. I hypothesize and find that more frequent reporting results in less accurate predictions and greater variance, particularly when a strong seasonal pattern exists. Finally, investors in the more-frequent reporting condition self-reported that they were more influenced by older historical data—suggesting primacy effects—while those in the less-frequent reporting condition self-reported that they were more influenced by the newer historical data, suggesting recency effects. Data Availability: Data are available from the author on request.

scholarly journals Rancangan Pembukuan Akuntansi Berbasis Excel for Accounting Pada Koperasi Jasa Keuangan Syariah (KJKS)

2015 ◽  
Vol 10 (1) ◽  
pp. 13-24
Author(s):  
Novrina Chandra ◽  
Sukartini
Keyword(s):  
Poverty Reduction ◽  
Business Development ◽  
Financial Information ◽  
Financial Statement ◽  
Decision Making Process ◽  
Financial Reports ◽  
Transaction Data ◽  
Financial Transaction ◽  
The Poor ◽  
Good Potential

In order to increase the society empowerment, Government of Padang create a program PKBK-BMT. This program is an integrated activity in order to accelerates poverty reduction, so that thegovernment of Padang form KJKS-BMT in every districts which aims to facilitates the poor society with microfinance and sustainable assistance, so that they can empower themselves. KJKS must convey accountability and financial reports activities to the local government. Therefore it needs accountable, accurate and timely financial statement. Both partners in these activities together are equaly have very good potential business development, but lack in the processing of financial transaction data and in the preparing of qualified financial statement for the decision making process of business development accountability.The results of this activitiy are the design of accounting bookkeeping based on excel for accounting, creating administrators who has ability to operate financial database, analizing and inputting financial transaction on the design of application. Beside, administrators can get the latest financial information at anytime by accessing that application design. The goals are to be known how far this program will run well and if there are some constraints encountered in the field then can immediately discussed with the administrators from both partners.

scholarly journals Peranan Penyusunan Laporan Keuangan Dalam Penyajian Informasi Keuangan Pada BMT At-Taqwa Muhammadiyah Sumatera Barat

2020 ◽  
Vol 8 (1) ◽  
pp. 14
Author(s):  
Leli Wita Suwita
Keyword(s):  
Balance Sheet ◽  
Financial Statements ◽  
Financial Information ◽  
Financial Statement ◽  
Financial Reports ◽  
Income Statement ◽  
Corporate Entity ◽  
West Sumatra ◽  
And Performance

This study aims to analyze how the role of financial statement preparation is to find out information relating to the financial position and performance of a corporate entity which includes the realization of the budget report, balance sheet, cash flow statement, and reports on the financial statement notes. The research method used is a qualitative method that compares financial statements between 2016 and 2018. The financial statements presented by BMT At-Taqwa Muhammadiyah West Sumatra in the form of a balance sheet and income statement, where an increase in value from the reporting date of the current year with the previous year, of the report there are still shortcomings in the reporting. BMT At-Taqwa Muhammadiyah West Sumatra is recommended to make all financial reports needed by financial information from BMT At-Taqwa Muhhammadiyah West Sumatra.Keywords: Role; Financial Statements; Financial Information.

PERANAN SOFTWARE ACCURATE DALAM MENUNJANG SISTEM INFORMASI AKUNTANSI (Studi Kasus pada CV. Nuansa Elektronik)

2019 ◽  
Vol 8 (01) ◽  
pp. 21
Author(s):  
Muhammad Nur Rizqi
Keyword(s):  
Accounting Information ◽  
Data Entry ◽  
Financial Information ◽  
Financial Statement ◽  
Financial Reports ◽  
Economic Decision ◽  
Financial Position ◽  
System Information ◽  
The Right ◽  
A Company

Along with the development of the age, economy in each country will experience growth. Evenntually, the development will take effect on the behavior and customs of the community of a country.Result generated by the end of the accounting information are the financial reports. Financial information of course is very important for the progress of a company. In order to provide a strategic competitive advantage for the company then a system that sets the accounting information is neededThe purpose of financial statement is to provide the information that connected with financial position, working method and changes in financial position of a company which useful for must user on making economic decision. The financial statement that sets for this purpose is expected can fulfill most of the user need. The financial statement is useful for most user when the information of financial statement can be understood, relevance, reliable and can be compared. However, the financial statement not supplied all information that users need in making economic decision. Generally, financial statement described financial effect of the past, and not requires providing non-financial information. This research examined about utilization of Accurate Accounting Programme, presentation of financial statement, and the function of Accurate Accounting Programme to increase presentation effectivity of financial statement at CV Nuansa Electronic. The purpose of this research is to know how about effects the function of Accurate Accounting Programme to increase presentation effectivity of financial statement. In business field, the use of personal computer has been an absolute needed, like a data entry, inventory, selling, human resources department, production process, and other office administration, also for correspondence only. The popular programmed such as WordStar, Lotus, and Dbase are used for that activity. Although that programmed give such big help, but there still have some problems and only can be used for some tasks. Although it can be used, the procedure is too complicated and data processing takes more time. Even though, financial statement has to prepared fast, correctly and accurately as information for management to take the right decision in financial. To handle the problems, CV Nuansa Electronic decided to use Accurate Accounting Program. The process of this program is very easy and quick in accordance with excel programme. Keywords : Software Accurate, System Information Accounting 

Do Quarterly and Annual Financial Statements Reflect Similar Financial Statement Error in the Post-SOX Era?

2021 ◽  
Vol 6 (1) ◽  
pp. 1-31
Author(s):  
Erik S. Boyle ◽  
Melissa F. Lewis-Western ◽  
Timothy A. Seidel
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Data Availability ◽  
Financial Statement ◽  
Annual Reports ◽  
Fiscal Year ◽  
High Quality ◽  
Financial Reports ◽  
Quality Reporting ◽  
Public Company

ABSTRACT The U.S. has invested substantial resources into the regulation and oversight of public-company financial reporting. While these investments should incentivize high-quality reporting among quarterly and annual financial statements, the sharp rise in public company auditor oversight may disproportionately benefit annual reports given the fiscal year-centric nature of audits. We compare the within company-year difference in financial statement error between quarterly and annual financial reports and examine how any difference changed following SOX. We find that pre-SOX error is lower for audited financial statements than for reviewed financial statements and that this difference increases following SOX. Additional tests suggest that elevated auditor oversight, rather than managerial incentives, is the impetus for the change. Despite regulatory investment designed to incentivize the production of high-quality quarterly and annual financial statements, the post-SOX difference in error between quarterly and annual financial statements appears to have increased. Data Availability: Data are available from public sources cited in the text. JEL Classifications: M41; M42.

scholarly journals PELAPORAN INFORMASI KEUANGAN MENURUT SEGMEN

2016 ◽  
Vol 4 (2) ◽  
pp. 78
Author(s):  
Akhmad Riduwan
Keyword(s):  
Financial Reporting ◽  
Complete Information ◽  
Financial Statements ◽  
Financial Information ◽  
Financial Statement ◽  
Consolidated Financial Statements ◽  
Growth Trend ◽  
Financial Reports ◽  
Financial Report ◽  
Public Company

Consolidated financial statements does not wholly provide complete information of the company’s activities with many segments. To meet the need of the financial statement users, it is necessary to expose the segmental financial information. The main objective of the exposure of the segmental financial information is to provide information for the users about relativity scale, profit contribution and the growth trend of each company’s segments to enable the financial reports users to better evaluate the company as a whole. The preparation procedure of the segmental financial statement is provided in PSAK No.5. Segmental financial reporting is a must for the ging-public company. However, this segmental report does not preclude the whole consolidated financial statement, because a segmental repot is merely complimentary to make consolidated financial report more informative.

Telaahan Penerapan Sistem Informasi Akuntansi Berbasis Komputer Akuntansi (Menggunakan Microsoft Excel) dalam Penyajian Laporan Keuangan (Studi Kasus pada Rumah Sakit Islam Bogor)

2010 ◽  
Vol 6 (02) ◽  
pp. 49
Author(s):  
Syarief Gerald Prasetya
Keyword(s):  
Information System ◽  
Balance Sheet ◽  
Accounting Information ◽  
Financial Statement ◽  
Microsoft Excel ◽  
Financial Reports ◽  
Accounting Information System ◽  
Achievement Data ◽  
Medical Needs ◽  
Processing Data

Hospital was established to serve the medical needs of the citizen. In addition to serving, hospitals also need to explore the benefits for the sustainability and the development of the hospital. To achieve financial reports have involved a large role. Accounting information system computer-based accounting will help serving the financial reports, so that more accurate and faster. Errors can be diminished.  Research object is selected by the author to conduct research is Bogor Rumah Sakit Islam. A hospital that is located on Jl. Perdana Raya. 22 Budi Agung, Jakarta Utara. This hospital was established on May 12, 1991. The location is strategic as it is in the center of Bogor. In doing activity, accounting information system based on computerized accounting still not yet common use. Computer already exist but support application to create an accurate and fast financial statement does not exist. So much weaknesses if we still using manual method. Like slowly processing data, still using much worker and much step while processing. The information result is still contained high mistake. To solve all problems above we need accounting software as tool for accounting division. For that I try to apply computerized accounting using Microsoft Excel for helping creating financial statement. By doing observation and interview with related employee, this research can do well. Journalize transaction process by using Microsoft Excel is to make a column for each transaction such as Journal Voucher, General Ledger, Balance Sheet. After making a column, the next step is inputing achievement data to Journal Voucher. After inputing data, General Ledger and Balance Sheet can automatically fill up. By using computer, processing data is more faster, information result is more accurately, human resource is less needed. Related management can get information they need more faster, because amount recalculated every doing transaction.

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