The dilution effect of Cam disclosures on investors' investment judgements
I conduct an experiment to examine whether a Critical Audit Matter (CAM) disclosure will weaken the influence of other material information on nonprofessional investors’ judgments. I predict and find evidence consistent with a dilution effect of CAM disclosures. Specifically, the negative influence...
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| Format: | Thesis |
| Language: | English |
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2016
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| Online Access: | http://hdl.handle.net/10356/69039 |
| _version_ | 1824455023158886400 |
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| author | Zheng, Juan |
| author2 | Tan Hun Tong |
| author_facet | Tan Hun Tong Zheng, Juan |
| author_sort | Zheng, Juan |
| collection | NTU |
| description | I conduct an experiment to examine whether a Critical Audit Matter (CAM) disclosure will weaken the influence of other material information on nonprofessional investors’ judgments. I predict and find evidence consistent with a dilution effect of CAM disclosures. Specifically, the negative influence of other material bad news is weakened by the presence of CAM disclosures. The CAM disclosures also increase investors’ confidence in their overall investment judgments. My results suggest that the disclosure of CAMs intended to provide more relevant information to investors can have the opposite effect of tempering investors’ utilization of other material information relevant to investment-related judgments. |
| first_indexed | 2025-02-19T03:31:37Z |
| format | Thesis |
| id | ntu-10356/69039 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2025-02-19T03:31:37Z |
| publishDate | 2016 |
| record_format | dspace |
| spelling | ntu-10356/690392024-01-12T10:31:36Z The dilution effect of Cam disclosures on investors' investment judgements Zheng, Juan Tan Hun Tong Nanyang Business School DRNTU::Business::Accounting I conduct an experiment to examine whether a Critical Audit Matter (CAM) disclosure will weaken the influence of other material information on nonprofessional investors’ judgments. I predict and find evidence consistent with a dilution effect of CAM disclosures. Specifically, the negative influence of other material bad news is weakened by the presence of CAM disclosures. The CAM disclosures also increase investors’ confidence in their overall investment judgments. My results suggest that the disclosure of CAMs intended to provide more relevant information to investors can have the opposite effect of tempering investors’ utilization of other material information relevant to investment-related judgments. Doctor of Philosophy (NBS) 2016-09-26T07:51:15Z 2016-09-26T07:51:15Z 2016 Thesis Zheng, J. (2016). The dilution effect of Cam disclosures on investors' investment judgements. Doctoral thesis, Nanyang Technological University, Singapore http://hdl.handle.net/10356/69039 en 60 p. application/pdf |
| spellingShingle | DRNTU::Business::Accounting Zheng, Juan The dilution effect of Cam disclosures on investors' investment judgements |
| title | The dilution effect of Cam disclosures on investors' investment judgements |
| title_full | The dilution effect of Cam disclosures on investors' investment judgements |
| title_fullStr | The dilution effect of Cam disclosures on investors' investment judgements |
| title_full_unstemmed | The dilution effect of Cam disclosures on investors' investment judgements |
| title_short | The dilution effect of Cam disclosures on investors' investment judgements |
| title_sort | dilution effect of cam disclosures on investors investment judgements |
| topic | DRNTU::Business::Accounting |
| url | http://hdl.handle.net/10356/69039 |
| work_keys_str_mv | AT zhengjuan thedilutioneffectofcamdisclosuresoninvestorsinvestmentjudgements AT zhengjuan dilutioneffectofcamdisclosuresoninvestorsinvestmentjudgements |