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Interactive data and retail investor decision‐making: an experimental study |
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| Authors: | Joanne Locke Alan Lowe Andy Lymer |
| Institution: | 1. Department of Accounting and Finance, Open University Business School, Milton Keynes, UK;2. Accounting Group, Aston Business School, Birmingham, UK;3. Department of Accounting and Finance, Birmingham Business School, Birmingham, UK |
| Abstract: | The results of an experimental study of retail investors' use of eXtensible Business Reporting Language tagged (interactive) data and PDF format for making investment decisions are reported. The main finding is that data format made no difference to participants' ability to locate and integrate information from statement footnotes to improve investment decisions. Interactive data were perceived by participants as quick and ‘accurate’, but it failed to facilitate the identification of the adjustment needed to make the ratios accurate for comparison. An important implication is that regulators and software designers should work to reduce user reliance on the comparability of ratios generated automatically using interactive data. |
| Keywords: | Interactive data eXtensible Business Reporting Language Investment decision‐making Experiment Financial reporting |