Effect of Tasks Complexity and Visualization on Investment Decision-Making
Abstract views: 229 | PDF downloads: 290
Abstract
ABSTRACT
This study examines the differences in investment decision-making, as measured by the accuracy, confidence, and calibration levels of investment decisions between participants who receive tasks with different levels of complexity and information visualization. It involved a laboratory experiment among accounting students who had taken or were taking courses in Financial Statement Analysis and Investment and Capital Market Management. The final sample comprised 172 participants who passed the manipulation check and the general accounting knowledge test. A 2 × 2 (within subject) experimental design was used for the analysis: task complexity (high and low) and information visualization (high and low). The results indicate that for nonprofessional investors, the complexity of the task has the most effect on investment decision-making compared to information visualization. Nonprofessional investors obtain information with high visualization, tasks with high complexity can reduce the level of accuracy, trust, and calibration in their decision-making. This is because a nonprofessional investor is more focused on the difficulty of the assignments that must be resolved, and thus, even a high level of information visualization does not help in investment decision-making.
References
Almilia, L. S. (2013). Model belief adjustment dalam pengambilan keputusan investasi berdasarkan informasi akuntansi dan nonakuntansi. Dissertation. Gadjah Mada University.
Almilia, L. S., Dewi, N. H. U., & Wulanditya, P. (2019). The effect of visualization and complexity tasks in investment decision making. HOLISTICA – Journal of Business and Public Administration, 10(1), 68–77. https://doi.org/10.2478/hjbpa-2019-0006
Almilia, L. S., & Supriyadi, N. A. (2013). Examining belief adjustment model on investment decision making. International Journal of Economics and Accounting, 4(2), 169–183. https://doi.org/10.1504/IJEA.2013.055171
Almilia, L. S., & Wulanditya, P. (2016). The effect of overconfidence and experience on belief adjustment model in investment judgement. International Research Journal of Business Studies, 9(1), 39–47. https://doi.org/10.21632/irjbs.9.1.39-47
Almilia, L. S., Wulanditya, P., & Nita, R. A. (2018). The Comparison of Investment Decision Frame and Belief-adjustment Model on Investment Decision Making. Jurnal Keuangan Dan Perbankan, 22(3), 405–417. https://doi.org/10.26905/jkdp.v22i3.1880
Astania, A., & Almilia, L. S. (2017). Mitigation of order-effects on investment decision making. The Indonesian Accounting Review. https://doi.org/10.14414/tiar.v6i2.678
Ayuananda, T. I., & Utami, I. (2015). Model revisi keyakinan dan keputusan audit: suatu pengujian eksperimental. Jurnal Akuntansi Dan Keuangan Indonesia, 12(2), 210–224. https://doi.org/10.21002/jaki.2015.12
Dilla, W. N., Janvrin, D. J., & Jeffrey, C. (2013). The impact of graphical displays of pro forma earnings information on professional and nonprofessional investors’ earnings judgments. Behavioral Research in Accounting. https://doi.org/10.2308/bria-50289
Efklides, A. (2008). Metacognition: Defining its facets and levels of functioning in relation to self-regulation and co-regulation. European Psychologist. https://doi.org/10.1027/1016-9040.13.4.277
Hanafi, T. (2017). The Testing of Belief-Adjustment Model and Framing Effect on Non-Professional Investor’s Investment Decision-Making. The Indonesian Accounting Review, 7(1), 1–14. https://doi.org/10.14414/tiar.v7i1.945
Kasper, G. M. (1996). A Theory of Decision Support System Design for User Calibration. Information Systems Research. https://doi.org/10.1287/isre.7.2.215
Kusumawardhani, H., & Almilia, L. S. (2015). Pola penyajian informasi dan keputusan investor yang irasional. Jurnal Bisnis Dan Ekonomi (JBE), 22(2), 140–153.
Lurie, N. H., & Mason, C. H. (2007). Visual representation: Implications for decision making. Journal of Marketing. https://doi.org/10.1509/jmkg.71.1.160
Mayer, R. E., and R. B. Anderson. (1991). Animations need narrations: An experimental test of a dual-coding hypothesis. Journal of Educational Psychology 83 (4): 484–490.
Nisa, A. K. (2017). Belief Adjustment Model Test in Investment Decision Making: Experimentation of short information Series. The Indonesian Accounting Review, 7(1), 15. https://doi.org/10.14414/tiar.v7i1.943
Paivio, A. (1991). Dual coding theory: Retrospect and current status. Canadian Journal of Psychology/Revue Canadienne de Psychologie. https://doi.org/10.1037/h0084295
Paivio, A. (2008). Mental Representations: A dual coding approach. In Mental Representations: A Dual Coding Approach. https://doi.org/10.1093/acprof:oso/9780195066661.001.0001
Pravitasari, N. P., & Almilia, L. S. (2015). Pengaruh pola penyajian end of sequence dan seri informasi pendek dalam pengambilan keputusan investasi. Jurnal Bisnis Dan Ekonomi (JBE), 22(2), 140–153.
Puspitaningtyas, Z. (2013). Perilaku Investor Dalam Pengambilan Keputusan Investasi Di Pasar MODAL. Jurnal Akuntansi Universitas Jember.
Rofiyah, F. D., & Almilia, L. S. (2017). The Examination Belief Adjustment Model against Overconfidence Investor Decision Making Investments. The Indonesian Accounting Review, 7(2), 177–190. https://doi.org/10.14414/tiar.v7i2.952
Rokhayati, H., Nahartyo, E. & Haryono (2019). Effect of financial information and corporate social responsibility disclosure on investment decision: evidence from an experimental study. Asian Journal of Business and Accounting , 12(1), 129–164. https://doi.org/10.22452/ajba.vol12no1.5
Tang, F., Hess, T. J., Valacich, J. S., & Sweeney, J. T. (2014). The effects of visualization and interactivity on calibration in financial decision-making. Behavioral Research in Accounting. https://doi.org/10.2308/bria-50589
Utami, I & Nahartyo, E. (2016). Audit decisions: the impact of interactive reviews with group support systems on information ambiguity. Asian Journal of Business and Accounting , 9(1), 105–139.
Copyright (c) 2022 Luciana Spica Almilia; Monica Dira Anas Hartika
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the works authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journals published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
