M. Arab Mazar Yazdy; A. Massihabadee
Volume 2, Issue 5 , April 2004, , Pages 95-130
Abstract
The purpose of this research is to study the effects of accounting information on investors ' perception, judgment, and decision making processes. A cognitive process conceptual model which is based on covariance structural modeling (casual modeling) was used to realize the goal. The main question in ...
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The purpose of this research is to study the effects of accounting information on investors ' perception, judgment, and decision making processes. A cognitive process conceptual model which is based on covariance structural modeling (casual modeling) was used to realize the goal. The main question in this research is: whether all Investors’ perception, judgment and decision making processes, in relation with information assessment and accuracy and soundness decision choices, is the same when they are presented with financial information? Based upon Meyers Briggs Type Indicator (MBTI) subjects were placed in one of two main groups, Data Driven and concept Driven. They were managers and high experts of investment companies, and they decided about investing in real corporations after assessment and judgment on those corporations' financial information.
In this research extracted principles of psychology have consolidated with methodology outputs in psychometric, econometric, and statistical techniques in a covariance structural modeling framework. Findings suggest that accounting information effect on Data Driven and concept Driven Investors' perception and judgment, and perception and judgment is an important determinant in investment or non-investment. On the other hand , Investors' perceptual, judgmental and decision choices are not the same, Data-Driven investors make better decisions and concept-Driven decision makers evaluate financial information (financial ratios ) more positively.
