Effects of comprehensive-income characteristics on nonprofessional investors' judgments: The role of financial-statement presentation format

• 成果类型: Article
• 署名作者: Maines, LA; McDaniel, LS
• 署名单位: Indiana University System; Indiana University Bloomington; University of North Carolina; University of North Carolina Chapel Hill
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr.2000.75.2.179
• 发表日期: 2000
• 页码: 179-207
• 关键词: irrelevant evidence; FORECAST ACCURACY; analysts; INFORMATION; DECISION

摘要

Statement of Financial Accounting Standards (SFAS) No. 130 requires companies to report comprehensive income in a primary financial statement, but allows its presentation in either a statement of comprehensive income or a statement of stockholders' equity (Financial Accounting Standards Board [FASB] 1997). In an experiment, we examine whether and how alternative presentation formats affect nonprofessional investors' processing of comprehensive-income information, specifically, information disclosing the volatility of unrealized gains on available-for-sale marketable securities, The results show that nonprofessional investors' judgments of corporate and management performance reflect the volatility of comprehensive income only when it is presented in a statement of comprehensive income. We provide evidence consistent with our psychology-based framework that these findings occur because format affects how nonprofessional investors weight comprehensive-income information and not whether they acquire this information or how they evaluate it.