Interactive data and retail investor decision-making: an experimental study

Locke, Joanne; Lowe, Alan; Lymer, Andy

doi:10.1111/acfi.12048

Cited by 21 publications

(21 citation statements)

References 22 publications

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“…Janvrin et al 2013report that nonprofessional investors provided with IDV spend less time doing tasks than when using non-IDV. Other research confirms this and notes that non-professional investors perform quicker financial statement analyses using IDV (Locke, Lowe, & Lymer, 2015).…”

Section: The Effect Of Idv and Task Characteristics On Decision Procesupporting

confidence: 64%

Does Visualization Matter? The Role of Interactive Data Visualization to Make Sense of Information

Perdana

Robb

Rohde

2018

AJIS

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As part of business analytics (BA) technologies, reporting and visualization play essential roles in mitigating users’ limitations (i.e., being inexperienced, having limited knowledge, and relying on simplified information). Reporting and visualization can potentially enhance users’ sense-making, thus permitting them to focus more on the information’s message rather than numerical analysis. To better understand the role of reporting and visualization in a contextualized environment, we investigate using interactive data visualization (IDV) within accounting. We aim to understand whether IDV can help enhance non-professional investors’ ability to make sense of foundational financial statement analyses. This study conducted an experiment using a sample of 324 nonprofessional investors. Our findings indicate that nonprofessional investors who use IDV are more heuristically adept than non-professional investors who use non-IDV. These findings enrich the theoretical understanding of business analytics’ use in accounting decision making. The results of this study also suggest several practical courses of action, such as promoting wider use of IDV and making affordable IDV more broadly available, particularly for non-professional investors.

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Section: The Effect Of Idv and Task Characteristics On Decision Procesupporting

confidence: 64%

Does Visualization Matter? The Role of Interactive Data Visualization to Make Sense of Information

Perdana

Robb

Rohde

2018

AJIS

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“…Lambert et al (2019) do not find a significant change in forecast accuracy post-XBRL but instead highlight more frequent analyst forecast announcements. Regarding possible causes of missing improvements, Locke et al (2015) observe that different accounting methods employed by companies make ratios generated automatically by the software incomparable. Chowdhuri et al (2014) verify this semantic heterogeneity as a fundamental issue of XBRL interoperability.…”

Section: Cluster "Decision Making / Market Efficiency / Corporate Governance"mentioning

confidence: 99%

Twenty years of XBRL: what we know and where we are going

Bartolacci

Caputo

Fradeani

et al. 2020

MEDAR

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Purpose This paper aims to extend the knowledge of eXtensible Business Reporting Language (XBRL) to synthesize what 20 years of accounting and business literature on XBRL suggests about the effective improvement from its implementation in financial reporting. Design/methodology/approach A systematic literature review and bibliometric analysis of 142 articles resulted in the identification of 5 primary research streams: adoption issues; financial reporting; decision-making processes, market efficiency and corporate governance; audit and assurance issues; and non-financial reporting. Findings The results reveal a scarcity of studies devoted to explicating the consequences of XBRL implementation on financial reporting outside the SEC’s XBRL mandate and listed companies’ contexts.. Also, some papers’ results question the usefulness of the language on the decision-making process. The overall lack of literature concerning the impact of XBRL on financial statement preparers, especially with reference to SMEs, is evident. Moreover, the consequences on corporate governance choices and the relevant internal decision-making processes are rarely debated. Research limitations/implications The findings are useful for users of companies’ financial disclosure policies, particularly for regulators who manage XBRL implementation in countries where XBRL has not yet been adopted as well as for others working in specific areas of financial disclosure, such as non-financial reporting and public sector financial reporting. Originality/value This study differs from previous literature on XBRL as it focuses on a wider period of analysis and offers a unique methodology – combination of bibliometric and systematic review – as well as a business perspective for deepening XBRL.

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“…An example of a concern in this context is that automated analysis may compare numbers of apparently the same accounting concepts but whose measurement and importance vary with the circumstances of the entity (Locke et al, 2015;Valentinetti and Rea, 2012). Similarly, an interviewee observed that: … if there are two exact same things and there is no tag for it … it's not comparable by a computer so that is an issue.…”

Section: User Conversionmentioning

confidence: 99%

Sites of translation in digital reporting

Locke

Rowbottom

Troshani

2018

AAAJ

Self Cite

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Purpose The purpose of this paper is to analyse the process by which “analogue” corporate reports produced under a “paper paradigm” are translated into a machine language as required by digital reporting. The paper uses Austin and Searle’s linguistic speech act theory to examine how digitally translating reporting information into atomised data affects the infrastructure and practice of accounting. Design/methodology/approach Extensive interview and observation evidence focussed on the IFRS Foundation’s digital reporting project is analysed. An interpretive approach is informed by the concepts of L compatibility, illocution and perlocutionary acts which are drawn from speech act theory. Findings Two key sites of translation are identified. The first site concerns the translation of accounting standards, principles and practices into taxonomies for digital tagging. Controversies arise over the definition of accounting concepts in a site populated by accounting and IT-orientated experts. The second site of translation is in the routine production and dissemination of digital reports which impacts the L compatibility between preparers and users. Originality/value The paper highlights a previously unexplored field of translation in accounting and contributes a unique perspective that demonstrates that machine translation is no longer marginalised but is the “primary” text with effects on the infrastructure and practice of accounting. It extends speech act theory by applying it to the digital domain and in the context of translation between languages.

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Interactive data and retail investor decision-making: an experimental study

Cited by 21 publications

References 22 publications

Does Visualization Matter? The Role of Interactive Data Visualization to Make Sense of Information

Does Visualization Matter? The Role of Interactive Data Visualization to Make Sense of Information

Twenty years of XBRL: what we know and where we are going

Sites of translation in digital reporting

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