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Does The Format Of Internal Control Disclosures Matter? An Experimental Investigation Of Nonprofessional Investor Behavior, Amanuel Fekade Tadesse
Does The Format Of Internal Control Disclosures Matter? An Experimental Investigation Of Nonprofessional Investor Behavior, Amanuel Fekade Tadesse
USF Tampa Graduate Theses and Dissertations
This study investigates whether the current lack of structure of internal control weakness disclosures (a narrative about the reliability of the financial reporting system) leads nonprofessional investors to make differential investment decisions. Using the non-accelerated filer (smaller public company) setting, where nonprofessional investors are likely to consume unaudited internal control reports in their investing judgments and decisions, I examine two facets of internal control disclosure formats: presentation salience and disaggregation of material weaknesses. A 2 x 2 between-participants behavioral experiment was conducted with internal control presentation salience (bulleted vs. in-text) and disaggregation level (a single material weakness vs. a combination …
The Effects Of Item Complexity And The Method Used To Present A Complex Item On The Face Of A Financial Statement On Nonprofessional Investors` Judgments, Linda Gale Ragland
The Effects Of Item Complexity And The Method Used To Present A Complex Item On The Face Of A Financial Statement On Nonprofessional Investors` Judgments, Linda Gale Ragland
USF Tampa Graduate Theses and Dissertations
My study is motivated by standard setters interest in better understanding (and the gap in research as to) the effects of item complexity and disaggregation across a financial statement on users' decision processes (Bonner 2008; Glaum 2009; FASB 2010b). I examine whether complexity of an item and the method used to present the item on a financial statement influences nonprofessional investors' judgments. Specifically, I examine two issues raised concerning IAS 19 Employee Benefits. The first is to examine whether there are differences in nonprofessional investors' judgments when individual components of a complex item (defined pension cost) are disaggregated across a …