Primacy or Recency? A Study of Order Effects When Nonprofessional Investors are Provided a Long Series of Disclosures

摘要: ABSTRACT: Firms have the incentive to aggregate multiple pieces of good and bad news together in a consistent direction (i.e., all positive or negative news) disclose it either sequentially (simultaneously) order reduce risk stock price volatility large declines. Unfortunately for investors, disclosure patterns such as these may result effects, which decision quality. My paper examines results three experiments determine: (1) effect, if any, when long series voluntary disclosures are made, (2) sequential simultaneous nature exacerbates any effect found. The first two use undergraduates participants, while third experiment uses actual nonprofessional investors try tease out explanations experimental findings. I find recency effects conditions experiments, significantly greater recen...