Financial estimates against investors’ preferences:anchoring, denial and spillover effects


This experimental study investigates how the characteristics of an estimate in a sensitivity disclosure and the level of threat it presents to investors' preferences interact to influence investors’ risk judgments. Firstly, I predict and find that variation in an estimate affects not only investors’ judgment on a related issue but also their future judgments on an unrelated issue. Secondly, I predict and find that investors are more sensitive to variations in an estimate when information contained in the estimate presents less threat to their preferred conclusions than when it presents greater threat. Finally, I predict and find that investors perceive more uncertainty regarding the association between the disclosed risk factor and the estimated financial reporting item in the estimate when the information presents greater threat.

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Divisions: College of Business and Social Sciences > Aston Business School > Accounting
College of Business and Social Sciences > Aston Business School
Additional Information: © 2017 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives License (, which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited, and is not altered, transformed, or built upon in any way.
Publication ISSN: 2159-4260
Last Modified: 05 Jun 2024 07:14
Date Deposited: 12 Oct 2017 12:10
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Related URLs: https://www.tan ... 88.2017.1367915 (Publisher URL)
PURE Output Type: Article
Published Date: 2018
Published Online Date: 2017-10-23
Accepted Date: 2017-08-07
Authors: Arikan, Ozlem (ORCID Profile 0000-0002-1916-2013)



Version: Published Version

License: Creative Commons Attribution Non-commercial No Derivatives

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