The Effects Between Numerical Tabulations And Graphs Of Financial Information On The Judgment Of Investors

Due to developments in information markets and advancements in information technology, and with the rapidity of information flow on the Internet, it is vital to increase the level of information transparency. Disclosure methods of financial information have presently become an important topic of discussion. By using numerical tables, non-distorted graphs or distorted graphs of financial information, this research discusses whether financial information display types indeed influence investors’ judgments and decisions. We investigate and analyze the use of graph disclosure in Taiwan and use experiment design methods to test the effect of investors’ judgment by comparing different display types of financial information. Our results find graphs are used to display comparative than numerical financial information, showing how this can influence investors’ awareness and judgments and use of graphs can be used to manipulate impressions (impression management)