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.
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.
| Original language | English |
|---|---|
| Pages (from-to) | 213-40 |
| Journal | Accounting and Finance |
| Volume | 55 |
| Early online date | 7 Nov 2013 |
| DOIs | |
| Publication status | Published - Mar 2015 |