Peer-reviewed
Does the ease of reading of financial disclosures influence investment decision?
The study, through an experimental approach, provides evidence on how the human mind responds to easy versus difficult to read financial disclosures and takes decisions on whether to invest in financial products. The results of the study highlight the need for the regulators to mandate that such disclosures be made in simple language for better investment decision-making by the masses.
• The study examines if readability of financial disclosures affects investment decision. • We conduct an experimental study on 441 MBA students. • The easy to read document induces more positive response towards investment. • We suggest policy changes to make disclosures simpler
• The study examines if readability of financial disclosures affects investment decision. • We conduct an experimental study on 441 MBA students. • The easy to read document induces more positive response towards investment. • We suggest policy changes to make disclosures simpler
Article, 2021