Article: Examining belief adjustment model on investment decision making Journal: International Journal of Economics and Accounting (IJEA) 2013 Vol.4 No.2 pp.169 - 183 Abstract: This research aims to examine the influence of order effects and response mode [a step by step (SbS) and an end of sequence (EoS)] or belief adjustment model on investment decisions making. The contribution of this research to the accounting literature is the existence of Belief Adjustment model developed by Hogarth and Einhorn that will be tested in this study in setting the investment decision. Experiment method is used to examine the research hypotheses. Final participant(s) in this research were (are) 93 people who are accounting students majoring in accounting at the private university in Surabaya, Indonesia. The results of this study show that a step by step (SbS) response mode tends to find significant recency effect, while judgment that require only one judgment at the end of the evidence series. Meanwhile, an end of sequence (EoS) response mode tends to find no recency effect. Practical implications of the research is to understand the impact of the presentation of accounting information, the order of information presentation, and the presentation of information investment decision pattern. For the Capital Market Supervisory Agency (BAPEPAM), this research may contribute to setting policies related to information order and disclosure pattern. Inderscience Publishers - linking academia, business and industry through research

Title: Examining belief adjustment model on investment decision making

Authors: Luciana Spica Almilia; Supriyadi

Addresses: Perbanas Business and Banking College, Nginden Semolo No. 34-36 Surabaya 60118, Indonesia ' Faculty of Business and Economics, Gadjah Mada University, Jl. Nusantara, Bulaksumur, Yogyakarta 55281, Indonesia

Abstract: This research aims to examine the influence of order effects and response mode [a step by step (SbS) and an end of sequence (EoS)] or belief adjustment model on investment decisions making. The contribution of this research to the accounting literature is the existence of Belief Adjustment model developed by Hogarth and Einhorn that will be tested in this study in setting the investment decision. Experiment method is used to examine the research hypotheses. Final participant(s) in this research were (are) 93 people who are accounting students majoring in accounting at the private university in Surabaya, Indonesia. The results of this study show that a step by step (SbS) response mode tends to find significant recency effect, while judgment that require only one judgment at the end of the evidence series. Meanwhile, an end of sequence (EoS) response mode tends to find no recency effect. Practical implications of the research is to understand the impact of the presentation of accounting information, the order of information presentation, and the presentation of information investment decision pattern. For the Capital Market Supervisory Agency (BAPEPAM), this research may contribute to setting policies related to information order and disclosure pattern.

Keywords: step by step; SbS; end of sequence; EoS; order effect; recency effect; belief adjustment models; investment decision making; response mode; Indonesia; accounting information; information presentation; information order; disclosure patterns.

DOI: 10.1504/IJEA.2013.055171

International Journal of Economics and Accounting, 2013 Vol.4 No.2, pp.169 - 183

Published online: 29 Apr 2014 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article

Title: Examining belief adjustment model on investment decision making

Keep up-to-date