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

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.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Accountancy

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2016

Author dc:creator

• Grant, Stephanie M

Contributors dc:contributor

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

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

Statement dc:rights

• Copyright 2016 Stephanie Grant

Language dc:language

en

Handle dc:identifier

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

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/90756