Accounting professionals often feel stress from qualitative overload in their jobs. Research in t... more Accounting professionals often feel stress from qualitative overload in their jobs. Research in the area of technology acceptance has not considered the potential negative effects of qualitative overload on user intentions. The purpose of this study is to examine the effect of this ...
This study investigates the effect of corporate governance mechanisms on Internet financial repor... more This study investigates the effect of corporate governance mechanisms on Internet financial reporting (IFR) behavior. We rely upon agency theory to predict an association between the extent of a firm's Internet disclosure behavior and its corporate governance structures. We measure corporate governance by shareholder rights, ownership structure, and board composition. We develop a disclosure index to measure IFR activities in the Investor Relations sections of a sample of publicly traded US firms. Specifically, we measure IFR by disclosure content, presentation format, required filings, voluntary disclosures, and corporate governance disclosures. Results indicate that firms with weak shareholder rights and a higher percentage of independent directors are more likely to engage in IFR. Interestingly, these firms are also more likely to provide disclosure regarding their corporate governance structures on their corporate web sites. As corporate governance and disclosure are considered necessary measures to protect shareholders, our results provide empirical evidence to policy makers and regulators for implementing new corporate governance requirements and IFR guidelines.
Internet financial reporting provides investors with several options regarding which type of fina... more Internet financial reporting provides investors with several options regarding which type of financial disclosures to view and the format in which to view these. However, research suggests that these options may result in unintended cognitive effects leading to less optimal decision making. Accordingly, this study examines the individual and joint impact of presentation format and information content on nonprofessional investors' decision making within the Internet financial reporting environment. Alternative presentation formats which vary in their navigational flexibility are studied to isolate the effects attributable to each format. Specifically, hyperlinked financial information is compared to paper-based financial information. The effects of information content differences are also examined by investigating whether an unaudited letter from a company's management differentially affects hyperlink and paper users' investment judgments.
We examine whether analyst forecasts influence investors' perceptions of the credibility of a goo... more We examine whether analyst forecasts influence investors' perceptions of the credibility of a good news management earnings forecast. We hypothesize that the effect of analyst forecasts will depend on whether the analyst forecast confirms management's forecast and the extent to which management's forecast is consistent with the prior earnings trend. Findings indicate that the positive effect of a confirming analyst forecast is greater when the management forecast is trend inconsistent than when it is trend consistent. The negative effect of a disconfirming analyst forecast does not differ based on management forecast trend consistency.
Accounting professionals often feel stress from qualitative overload in their jobs. Research in t... more Accounting professionals often feel stress from qualitative overload in their jobs. Research in the area of technology acceptance has not considered the potential negative effects of qualitative overload on user intentions. The purpose of this study is to examine the effect of this ...
This study investigates the effect of corporate governance mechanisms on Internet financial repor... more This study investigates the effect of corporate governance mechanisms on Internet financial reporting (IFR) behavior. We rely upon agency theory to predict an association between the extent of a firm's Internet disclosure behavior and its corporate governance structures. We measure corporate governance by shareholder rights, ownership structure, and board composition. We develop a disclosure index to measure IFR activities in the Investor Relations sections of a sample of publicly traded US firms. Specifically, we measure IFR by disclosure content, presentation format, required filings, voluntary disclosures, and corporate governance disclosures. Results indicate that firms with weak shareholder rights and a higher percentage of independent directors are more likely to engage in IFR. Interestingly, these firms are also more likely to provide disclosure regarding their corporate governance structures on their corporate web sites. As corporate governance and disclosure are considered necessary measures to protect shareholders, our results provide empirical evidence to policy makers and regulators for implementing new corporate governance requirements and IFR guidelines.
Internet financial reporting provides investors with several options regarding which type of fina... more Internet financial reporting provides investors with several options regarding which type of financial disclosures to view and the format in which to view these. However, research suggests that these options may result in unintended cognitive effects leading to less optimal decision making. Accordingly, this study examines the individual and joint impact of presentation format and information content on nonprofessional investors' decision making within the Internet financial reporting environment. Alternative presentation formats which vary in their navigational flexibility are studied to isolate the effects attributable to each format. Specifically, hyperlinked financial information is compared to paper-based financial information. The effects of information content differences are also examined by investigating whether an unaudited letter from a company's management differentially affects hyperlink and paper users' investment judgments.
We examine whether analyst forecasts influence investors' perceptions of the credibility of a goo... more We examine whether analyst forecasts influence investors' perceptions of the credibility of a good news management earnings forecast. We hypothesize that the effect of analyst forecasts will depend on whether the analyst forecast confirms management's forecast and the extent to which management's forecast is consistent with the prior earnings trend. Findings indicate that the positive effect of a confirming analyst forecast is greater when the management forecast is trend inconsistent than when it is trend consistent. The negative effect of a disconfirming analyst forecast does not differ based on management forecast trend consistency.
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Papers by Andrea Kelton