Determinants of investors' information acquisition: Credibility and confirmation

Accounting Review

Volumn 86, Issue 1, 2011, Pages 1-22

  Thayer, Jane ^a  

^a UNIVERSITY OF GEORGIA   (United States)

Author keywords

Credibility; Experiment; Information acquisition; Investors; Preferences

Indexed keywords

EID: 79952682643     PISSN: 00014826     EISSN: None     Source Type: Journal    
DOI: 10.2308/accr.00000015     Document Type: Article

References (34)

1. Bettman, J. R., E. J. Johnson, and J. W. Payne. 1990. A componential analysis of cognitive effort in choice. Organizational Behavior and Human Decision Processes 45 (1): 111-139.
2. Brehm, J. W. 1956. Post-decision changes in the desirability of alternatives. The Journal of Abnormal Psychology and Social Psychology 52: 384-389.
3. - and A. R. Cohen. 1962. Explorations in Cognitive Dissonance. New York, NY: Wiley.
4. Clement, M. B. 1999. Analyst forecast accuracy: Do ability, resources, and portfolio complexity matter? Journal of Accounting and Economics 27 (3): 285-303.
5. - and S. Y. Tse. 2003. Do investors respond to analysts' forecast revisions as if forecast accuracy is all that matters? The Accounting Review 78 (1): 227-249. (Pubitemid 36263663)
6. Diamond, D. W., and R. E. Verrecchia. 1987. Constraints on short selling and asset price adjustment to private information. Journal of Financial Economics 18: 277-311.
7. Ditto, P. H., and D. F. Lopez. 1992. Motivated skepticism: Use of differential decision criteria for preferred and nonpreferred conclusions. Journal of Personality and Social Psychology 63: 568-584.
8. - G. D. Munro, A. M. Apanovitch, J. A. Scepansky, and L. K. Lockhart. 2003. Spontaneous skepticism: The interplay of motivation and expectation in responses to favorable and unfavorable medical diagnoses. Personality and Social Psychology Bulletin 29 (9): 1120-1132. (Pubitemid 37035585)
9. - J. A. Scepansky, G. D. Munro, A. M. Apanovitch, and L. K. Lockhart. 1998. Motivated sensitivity to preference-inconsistent information. Journal of Personality and Social Psychology 75 (1): 53-69.
10. Erdem, T., and J. Swait. 1998. Brand equity as a signaling phenomenon. Journal of Consumer Psychology 1 (2): 131-157. (Pubitemid 128683069)
11. Festinger, L. 1957. A Theory of Cognitive Dissonance. Stanford, CA: Stanford University Press.
12. - 1964. Conflict, Decision, and Dissonance. Stanford, CA: Stanford University.
13. Figlewski, S., and G. P. Webb. 1993. Options, short sales, and market completeness. The Journal of Finance 48 (2): 761-777.
14. Frey, D. 1981. Postdecisional preferences for decision-relevant information as a function of the competence of its source and the degree of familiarity of this information. Journal of Experimental Social Psychology 17: 51-67.
15. - 1986. Recent research on selective exposure to information. In Advances in Experimental Social Psychology, Vol. 19, edited by L. Berkowitz, 41-80. New York, NY: Academic Press.
16. - and D. Stahlberg. 1986. Selection of information after receiving more or less reliable self-threatening information. Personality and Social Psychology Bulletin 12 (4): 434-441.
17. - and R. A. Wicklund. 1978. A clarification of selective exposure. Journal of Experimental Social Psychology 14: 132-139.
18. Gleason, C. A., and C. M. C. Lee. 2003. Analyst forecast revisions and market price discovery. The Accounting Review 78 (1): 193-225. (Pubitemid 36263662)
19. Hales, J. 2007. Directional preferences, information processing, and investors' forecasts of earnings. Journal of Accounting Research 45 (3): 607-628.
20. Hong, H., and J. D. Kubik. 2003. Analyzing the analysts: Career concerns and biased earnings forecasts. The Journal of Finance 58 (1): 313-351. (Pubitemid 37311737)
21. Hutton, A. P., and P. C. Stocken. 2009. Prior forecasting accuracy and investor reaction to management earnings forecasts. Working paper, Boston College.
22. Jennings, R. 1987. Unsystematic security price movements, management earnings forecasts, and revisions in consensus analyst earnings forecasts. Journal of Accounting Research 25 (1): 90-110.
23. Kruglanski, A. W. 1980. Lay epistemologic - Process and contents: Another look at attribution theory. Psychological Review 87 (1): 70-87.
24. - 1990. Motivations for judging and knowing: Implications for causal attribution. In The Handbook of Motivation and Cognition: Foundations of Social Behavior, Vol. 2, edited by E. T. Higgins, and R. M. Sorrentino. 333-368. New York, NY: The Guilford Press.
25. - and D. M. Webster. 1996. Motivated closing of the mind: "Seizing" and "freezing." Psychological Review 103 (2): 263-283. (Pubitemid 126421430)
26. Leventhal, G. S., and J. W. Brehm. 1962. An experiment on volition of choice. In Explorations in cognitive dissonance, edited by Brehm, J. W., and A. R. Cohen. New York, NY: Wiley.
27. Lowin, A. 1967. Approach and avoidance: Alternate modes of selective exposure to information. Journal of Personality and Social Psychology 6 (1): 1-9.
28. - 1969. Further evidence for an approach-avoidance interpretation of selective exposure. Journal of Experimental Social Psychology 5 (3): 265-271.
29. Mercer, M. 2004. How do investors assess the credibility of management disclosures? Accounting Horizons 18 (3): 185-196.
30. Rogers, J. L., and P. C. Stocken. 2005. Credibility of management forecasts. The Accounting Review 80 (4): 1233-1260. (Pubitemid 41650942)
31. Sprinkle, G. B. 2000. The effect of incentive contracts on learning and performance. The Accounting Review 75 (3): 299-326.
32. Stickel, S. E. 1992. Reputation and performance among security analysts. The Journal of Finance 47 (5): 1811-1836.
33. Teoh, S. H., and T. J. Wong. 1993. Perceived auditor quality and the earnings response coefficient. The Accounting Review 68 (2): 346-366.
34. Wicklund, R. A., and J. W. Brehm. 1976. Perspectives on Cognitive Dissonance. Hillsdale, NJ: Lawrence Erlbaum Associates