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The informational role of imagery in financial decision making: A new approach

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  • Ronen, Joshua
  • Ronen, Tavy
  • Zhou, Mi (Jamie)
  • Gans, Susan E.

Abstract

This study develops a novel approach to identify characteristics of images and a combination thereof (expressiveness) that are likely to and found to be associated with investment decisions. We also create new methodologies to quantify these characteristics. We further develop a new machine learning-based measure of informativeness called additivity, which is the degree to which the images convey information beyond the content embedded in textual narratives; additivity is significantly associated with funding beyond other image characteristics. We also address the causal impact of image characteristics using the onset of COVID-19 as an exogenous shock and a difference-in-difference methodology. Our exploration of the implications for financing decisions goes beyond the existing imagery studies within this developing field.

Suggested Citation

  • Ronen, Joshua & Ronen, Tavy & Zhou, Mi (Jamie) & Gans, Susan E., 2023. "The informational role of imagery in financial decision making: A new approach," Journal of Behavioral and Experimental Finance, Elsevier, vol. 40(C).
    • Handle: RePEc:eee:beexfi:v:40:y:2023:i:c:s2214635023000655
    DOI: 10.1016/j.jbef.2023.100851
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