Impact of investors' status on their evaluation of positive and negative, and past and future information

This paper examines the effect of investors’ status (current and prospective) on their evaluation of information varying in valence (negative and positive) and temporality (past and future). Master of Business Administration graduates, proxying for current or prospective investors, rated the relevan...

Full description

Saved in:
Bibliographic Details
Published in:Accounting and finance (Parkville) 2008-12, Vol.48 (5), p.719-739
Main Authors: Cianci, Anna M., Falsetta, Diana
Format: Article
Language:English
Subjects:
Disclosure
Goals
Impact analysis
Information
Information temporality
Information valence
Investor status
Investors
M41
Management Discussion & Analysis
Studies
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper examines the effect of investors’ status (current and prospective) on their evaluation of information varying in valence (negative and positive) and temporality (past and future). Master of Business Administration graduates, proxying for current or prospective investors, rated the relevance of negative, positive, past, and future Management Discussion and Analysis information. Investors’ relevance ratings of information resulted in the following ranking (from highest to lowest): negative‐future, negative‐past, positive‐future, and positive‐past information. Furthermore, prospective investors (relative to current) rated positive and future information as more relevant and negative information as less relevant. Implications for effective disclosure strategies and policies are discussed.
ISSN:0810-5391
1467-629X
DOI:10.1111/j.1467-629X.2008.00269.x