Aref M. Eissa, Ahmed Diab, Meshal Obaid Almutairi, Amr N. Abdelrhman
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引用次数: 0
Abstract
This study explores investors’ perceptions of investment risk under information overload. We use a survey of 133 individual investors in the Kingdom of Saudi Arabia (KSA), and to test our hypotheses, we employ descriptive statistics and sample t-test. We found that information overload in lengthy annual reports decreases investors’ confidence in the financial statements and reduces their ability to understand the firm’s business and financial performance. Investors confirmed that information overload reduces their ability to access relevant information for making investment decisions and predict future performance, and increases uncertainty about the firms’ future performance. Consequently, information overload increases investors’ perceptions of firms’ investment risk, reduces their confidence to invest in firms with long and difficult-to-read annual reports, and increases their perceptions of the likelihood that these reports are being exploited by managers to hide poor performance or earnings manipulation, and consequently, they prefer not to invest in these firms. In addition, the results indicated that disclosure complexity along with information overload exacerbates investors’ negative perceptions about the firm’s investment risk and its performance. Our results provide insights for investors in emerging markets such as the Saudi market to understand the negative implications of information overload, which can enlighten their investment decisions.
本研究探讨了投资者在信息超载情况下对投资风险的看法。我们对沙特阿拉伯王国(KSA)的 133 名个人投资者进行了调查,并采用描述性统计和样本 t 检验来检验我们的假设。我们发现,冗长年报中的信息超载会降低投资者对财务报表的信心,降低他们理解公司业务和财务业绩的能力。投资者确认,信息超载降低了他们获取相关信息以做出投资决策和预测未来业绩的能力,增加了公司未来业绩的不确定性。因此,信息超载增加了投资者对公司投资风险的感知,降低了他们对那些年报冗长且难以阅读的公司的投资信心,增加了他们对这些年报被经理人利用来掩盖业绩不佳或操纵盈利的可能性的感知,因此,他们宁愿不投资这些公司。此外,研究结果表明,信息披露的复杂性和信息超载加剧了投资者对公司投资风险和业绩的负面看法。我们的研究结果为沙特等新兴市场的投资者了解信息超载的负面影响提供了启示,有助于他们做出投资决策。
期刊介绍:
International Journal of Business and Society (IJBS) is an international scholarly journal devoted in publishing high-quality papers using multidisciplinary approaches with a strong emphasis on business, economics and finance. It is a triannual journal published in April, August and December and all articles submitted are in English. Our uniqueness focus on the impact of ever-changing world towards the society based on our niche area of research. IJBS follows a double-blind peer-review process, whereby authors do not know reviewers and vice versa. The journal intends to serve as an outlet with strong theoretical and empirical research and the papers submitted to IJBS should not have been published or be under consideration for publication elsewhere.