The effect of a coherent presentation model of financial statements on investors' judgment and decisions in comparison with the model presented by the Tehran Stock Exchange and the auditing organization using a quasi-experimental approach

Document Type : Original Article

Authors
saber sheri 1
Mohammad Hassan Ebrahimi Sarv Olya 2
Qasem Bolo 1
vahid eftekhari 3
1 Associate Professor of accounting, Faculty of management and accounting . Allameh Tabatabai University
2 Associate professor of Financial Management,Faculty of Accounting and Management,Allameh Tabatabei university
3 PhD Candidate in Accounting, Allameh Tabataba’i University, Tehran, Iran
Abstract
The purpose of this study is to investigate the effect of changing the pattern of financial statements on the judgment and decision of investors using a quasi-experimental approach. The research hypotheses are based on the theory of cognitive burden and it is expected that changing the pattern of financial statement information by reducing cognitive effort can affect the judgment and decision of investors. To examine this issue, the pattern of financial statement information based on the joint study of the two International Accounting Standards Board and the American Financial Accounting Standards Board at the level of the three basic financial statements has changed and how participants answered research questions based on the new financial statements. It has been compared by the Tehran Stock Exchange and the auditing organization with the model proposed by these two boards. The test takers include people who have accounting and financial experience and have at least a bachelor's degree in accounting or various management orientations. Accordingly, 92 people were selected as the statistical sample of the research. Due to the non-normality of the research data, non-parametric Mann-Whitney test has used. The results of this test show that the cohesive pattern of financial statements has influenced the judgment and decision of investors by reducing cognitive effort
Keywords
Judgment and decision making
cognitive effort
Cohesiveness pattern of financial statements
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