An Investigation Of Security Analysts Use Of Non-Accounting Data For Decision Making

This research evaluates the responses of Chartered Financial Analysts (CFAs) asked what additional information considered useful to make a buy/sell decision regarding equity securities. The information is dichotomized into quantitative/qualitative and internal/external groups. The results show that for the total sample of CFAs, the information requests are not significantly different form a 50/50 split. The inference drawn is that since almost 50% of the information used is external (qualitative), additional mandatory disclosures of accounting information should be carefully reviewed before implementation