Journal of Accounting Research Vol. 58 No. 3 2020
How Does Using a Mobile Device Change Investors’ Reactions to Firm Disclosures?
Abstract
I examine how characteristics of investors’ information access tools change investors’ reactions to firm disclosures. I examine my research question in the context of information choice (i.e., allowing investors to choose the order of information and sections to read within a disclosure) and spatial layout (i.e., how information is displayed when viewing the disclosure). Results of an experiment are consistent with information choice improving investors’ judgments if the disclosure is viewed on a computer screen. Conversely, and consistent with cognitive overload, information choice harms investors’ judgments if the disclosure is viewed on a smaller screen, such as that of a mobile device. Follow‐up experiments show that changing the disclosure presentation to reduce the need to scroll is one way to improve investors’ judgments on a smaller (or mobile) screen. My findings caution firms and regulators about expanding information choice within disclosures without considering the screen size used to access the disclosure.
- DOI
- 10.1111/1475-679x.12299
- Volume
- 58
- Issue
- 3
- Pages
- 741-775
- Language
- en
- Sources
- crossref openalex bibtex:phds-export.bib