The information gap in corporate annual reports: Evidence from Vietnam

Dang, Thi Thuy Hang

doi:10.5267/j.ac.2020.5.004

Cited by 3 publications

(4 citation statements)

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“…An investor's behavior is related to the emotional involvement, nature, preferences, and various things inherent in humans as intellectual and social beings are interacting in deciding to take any action that investors think is the right decision. An investment decision is based not only on a company's fundamental analysis but also on a company (De Vries et al 2017;Dang et al, 2020). An individual investor's ability to make the right decisions will result in having no financial problems in the future and show healthy financial behavior (Saravanan & Satish, 2020).…”

Section: Financial Behavior and Investmentmentioning

confidence: 99%

“…Decision making determined by investors only uses information that is very important because the information obtained is incomplete and less relevant to be used as a basis for decision making but must make a decision right away (Thuan et al 2020;Tarigan et al, 2021). Investors that trade on the Vietnamese stock market on a regular basis discovered that there is a link between psychology and investor behavior, and that firm size affects stock returns for investors (Phuong, 2020;Dang et al, 2020). Heuristics can make decision making faster, but heuristics can also create bias.…”

Section: Essential Information In Stock Marketmentioning

confidence: 99%

“…Investors always try to tailor to investors' needs but have a time limit in making the right decision. Yearly reports by publicly traded firms and individual investors' information demands for investment decisions (Dang et al, 2020). Investors can invest in the short and long term.…”

Section: Introductionmentioning

confidence: 99%

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The effect of essential information and disposition effect on shifting decision investment

Basana¹,

Tarigan²

2022

10.5267/j.ac

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The current pandemic era has given uncertainty to the country's economic growth and resulted in many countries experiencing a drastic decline in share prices. This condition impacts investors' perceptions of the funds that have invested in the stock market. This study investigates the effect of essential information and disposition effect on shifting decision investment with the character investor's moderation as the moderator variable. A survey was conducted on 252 investors who have invested in the Indonesian stock exchange. The Data processing used the partial least square (PLS) technique. This study indicates that essential information for investors in the pandemic era can increase the disposition effect in deciding beneficial share ownership. The essential information obtained by investors in the covid era regarding stock market movements and its internal performance in the stock market list can increase investor shifting decisions. The disposition effect can have a significant effect on shifting decision investors. Essential information related to stock price movements and its internal performance affects investors' courage to take risks and provide optimism for shifting decisions. Then the investor type does not affect the disposition effect on shifting decisions. This study contributes to the theory of financial behavior in decision making by considering psychological factors when uncertainty exists in the stock market.

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Section: Financial Behavior and Investmentmentioning

confidence: 99%

Section: Essential Information In Stock Marketmentioning

confidence: 99%

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The effect of essential information and disposition effect on shifting decision investment

Basana¹,

Tarigan²

2022

10.5267/j.ac

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“…For example, Bean and Irvine (2015) and Stanga and Tiller (1983) conducted their studies with respect to lending decisions from the lenders perspective. Many single-user studies focus on investors and investment decisions (Al-Ajmi, 2009;Babu and Hossain, 2019;Bartlett and Chandler, 1997;Bence et al, 1995;Biswas and Bala, 2016;Chenhall and Juchau, 1977;Dang et al, 2020;Epstein, 1975;Hjelstrom et al, 2014;Joshi and Abdulla, 1994;Mohamed et al, 2019;Scott and Smith, 1992). Those studies discuss how the different types of investor groups such as institutional investors, individual investors, sophisticated and non-sophisticated investors would use annual report information for investment decisions.…”

Section: Literature Review 21 Use and Usefulness Of Annual Reportsmentioning

confidence: 99%

The usefulness of IFRS-compliant reports: perceptions of Sri Lankan investors and lenders

Bandara

Falta

2021

ARA

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PurposeThis paper aims to examine differential perceptions of lenders and investors on (1) the use, perceived usefulness, importance and adequacy of annual reports, (2) the importance of qualitative characteristics (QCs) and (3) the perceived impact of International Financial Reporting Standards (IFRS) on financial reporting quality (FRQ) in Sri Lanka.Design/methodology/approachA questionnaire survey study of practising professionals consisting of Sri Lankan investors (N = 214) and lenders (N = 235).FindingsIn relation to (1), lenders and investors rank three out of ten information sources ahead of the remaining seven: both include annual reports and personal knowledge. However, the highest average response for lenders is direct communication with clients, and for investors, it is stock market publications. Within annual reports, both decision-makers identify financial statements as the most useful part. Concerning (2), they both identified understandability as the most important QC followed by timeliness. Relevance ranked last, surprisingly. In relation to (3), both groups perceived that the new IFRS reporting environment improved the FRQ compared to the previous Sri Lanka Accounting Standards regime.Practical implicationsRanking understandability as the most important QC in terms of decision usefulness contradicts IASB's categorisation. The authors provide empirical data on the perceived degree of success of adopting IFRS in a developing economy.Originality/valueThe authors design a decision-oriented (lending vs investing) and context-specific (IASB's financial reporting framework) questionnaire to examine the perceptions of key capital providers separately on the issues mentioned above in “Purpose” within a developing economy. The survey fits into two aspects of the decision-useful theory: useful to make what decisions and useful to whom.

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