IDEAS home Printed from https://ideas.repec.org/a/taf/acctbr/v47y2017i4p431-454.html
   My bibliography  Save this article

Understanding investors’ reliance on disclosures of nonfinancial information and mitigating mechanisms for underreliance

Author

Listed:
  • Lei Dong

Abstract

This study uses two experiments to examine whether nonprofessional investors rely on voluntarily disclosed nonfinancial information (NFI) and the factors that affect their reliance on such information. Results from experiment one suggest that nonfinancial disclosure affects high-experience (long-term) investors more than low-experience (short-term) investors. In addition, more investing experience seems to compensate the insensitivity to NFI caused by a short-term investment horizon. Results from experiment two suggest that merely requiring participants to evaluate firms’ performance separately based on the financial and nonfinancial measures (NFMs) – or merely presenting the NFMs in a more readable format – does not significantly alter the reliance on the nonfinancial disclosure for low-experience and short-term investors. However, when the two interventions are implemented simultaneously, NFI significantly affects the amount invested by those investors.

Suggested Citation

  • Lei Dong, 2017. "Understanding investors’ reliance on disclosures of nonfinancial information and mitigating mechanisms for underreliance," Accounting and Business Research, Taylor & Francis Journals, vol. 47(4), pages 431-454, June.
  • Handle: RePEc:taf:acctbr:v:47:y:2017:i:4:p:431-454
    DOI: 10.1080/00014788.2016.1277969
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00014788.2016.1277969
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00014788.2016.1277969?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pei‐Chi Kelly Hsiao & Charl de Villiers & Claire Horner & Hein Oosthuizen, 2022. "A review and synthesis of contemporary sustainability accounting research and the development of a research agenda," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(4), pages 4453-4483, December.
    2. Nazim Hussain & Ugo Rigoni & Elisa Cavezzali, 2018. "Does it pay to be sustainable? Looking inside the black box of the relationship between sustainability performance and financial performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1198-1211, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:acctbr:v:47:y:2017:i:4:p:431-454. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RABR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.