Accounting, Organizations and Society Vol. 68-69 2018
Unpacking the disclosure package: Using experiments to investigate investor reactions to narrative disclosures
Abstract
In this commentary on “Do features that associate managers with a message magnify investor's reactions to narrative disclosures?” by Asay, Libby, and Rennekamp (2018), I discuss issues regarding the experimental methods commonly used to study the effects of narrative financial disclosures. First, I suggest a broader view of the complementarity of experimental and archival research. Second, experimental methods provide an opportunity to design materials that use minimal representations of phenomena of interest or to use a broader, 360°, approach in depicting the phenomena; I argue the latter approach is a valid option. Third, I note concerns about the ubiquitous “process” or mediation testing in many financial accounting experiments. Fourth, I argue that the use of online participant population can be improved through better screening, to parallel the screening we use with student participant groups. Fifth, I summarize comments by conference participants that questioned the source of corporate disclosure style choices and investor style expectations. The paper concludes with a call for a framework to organize and understand the myriad of financial disclosure style choices made by firm management.
- DOI
- 10.1016/j.aos.2018.05.001
- Volume
- 68-69
- Pages
- 15-20
- Language
- en
- Sources
- semanticscholar openalex crossref