Examining the Effects of Presentation Patterns, Orders, and Information Types in Investment Decision Making

Luciana Spica Almilia, Jogiyanto Hartono, . Supriyadi, Ertambang Nahartyo
(Submitted 7 January 2015)
(Published 12 June 2013)


This study aims to investigate the existence of Belief Model (BAM) developed by Hogarth and Einhorn (1992) in investment decision making. Particulary, this study examined: the effects of presentation patterns, presentation orders, and information types (accounting or non-accounting information) in investment decision making. This study used laboratory experiment to test the hypotheses. Hypotheses were tested using t-test. This study showed a “judgement bias” that is a recency which the effect of presentation pattern is consecutive is higher than unconsecutively.                  

Full Text: PDF

DOI: 10.22146/gamaijb.5701


Abdelkarim, N., Y. A. Shahin, and B. M. Arqawi. 2009. Investor perception of information disclosed in financial reports of Palestine securities exchange listed companies. Accounting and Taxation 1 (1): 45–61.

Ahlawat, S. S. 1999. Order Effect and Memory for Evidence in Individual versus Group Decision Making in Auditing. Journal of Behavioral Decision Making 12: 71–88.

Alattar, J. M., and K. Al-Khater. 2007. An empirical investigation of users’ views on corporate annual reports in Qatar. International Journal of Commerce and Management 17 (4): 312–325.

Asare, S. K. 1992. The auditor’s going-concern decision: Interaction of task variables and the sequential processing of evidence. The Accounting Review 67 (2): 379–393.

Ashton, A. H., and R. H. Ashton. 1988. Sequential belief revision in auditing. The Accounting Review 64 (4): 623–641.

Baird, J. E., and R. C. Zelin II. 2000. The effects of information ordering on investor perceptions: An experiment utilizing presidents’ letters. Journal of Financial and Strategic Decisions 13 (3): 71–80.

Bamber, E. M., R. J. Ramsay and R. M. Tubbs. 1997. An Examination of the descriptive validity of the belief-adjustment model and alternative attitude to evidence in auditing. Accounting, Organizations and Society 22: 249–268.

Guiral-Contreras, A., J. A. Gonzalo-Angulo, and W. Rodgers. 2007. Information content and recency effect of the audit report in loan rating decisions. Accounting and Finance 47: 285–304.

Hodge, F. D. 2003. Investors’ perception of earnings quality, auditor independence, and the usefulness of audited financial information. Accounting Horizons 17: 37–48

Hogarth, R. M., and H. J. Einhorn. 1992. Order effect in belief updating: The belief – adjustment model. Cognitive Psychology 24: 1–55.

Jogiyanto. 2004. Psychology of Finance: How, Why and When Investor Revise their Beliefs to Company Information and their Implocations to Firm’s Announcement Policy. Yogyakarta, Indonesia: Penerbit Andi.

Kahle, J., R. Pinsker, and R. Pennington. 2005. Belief revision in accounting: A literature review of the belief-adjustment model. Advances in Accounting Behavioral Research 8: 1–40.

Kennedy, J. 1993. Debiasing audit judgment with accountability: A framework and experimental result. Journal of Accounting Research 31: 231 – 245.

Krishnamoorthy, G., T. J. Mock, and M. T. Washington. 1999. A comparative evaluation of belief revision models in auditing. Auditing: A Journal of Practice and Theory 18: 143–153.

McMillan, J. J., and R. A. White. 1993. Auditors’ belief revisions and evidence search: The effect of hypothesis frame, confirmation bias, and professional skepticism. The Accounting Review 68 (3): 443–465.

Messier, W. F., and R. M. Tubbs. 1994. Recency effect in belief revision: The impact of audit experience and the review process. Auditing: A Journal of Practice and Theory 13 (1): 57–72.

Monroe, G. S., and J. Ng. 2000. An examination of order effect in auditors’ inherent risk assessments. Accounting and Finance 40: 153–168.

Pinsker, R. 2007. Long series of information and nonprofessional investors’ belief revision. Behavioral Research in Accounting 19: 197– 214.

Pinsker, R. 2011. Primary or recency? A study of order effects when nonprofessional investors are provided a long series od disclosures. Behavioral Research in Accounting 23 (1): 161–183.

Sharma, D. S. 2006. Effects of professional and non-professional investors’ perceptions of board effectiveness on their judgments: An experimental study. Journal of Accounting and Public Policy 25: 91– 115.

Tubbs, R. M., W. F. Messier, and W. R. Knechel. 1990. Notes: Recency effect in the auditor’s belief revision process. The Accounting Review 65 (2): 452– 480.

Tuttle, B., M. Coller, and F. G. Burton. 1997. An examination of market efficiency: information order effects in a laboratory market. Accounting, Organizations and Society 22 (1): 89– 103.


  • There are currently no refbacks.

Copyright (c)