Influence of Textual Presentation Order-Free-Samples for Students

Question: Discuss about the Influence of textual presentation order and graphical presentation on the judgements of non-professional investors. Answer: Background: The impression management is an important strategy adopted by the organizations in order to influence the investment decision of the non-professional investors, who are less experienced and knowledgeable to be able to assess the disclosure credibility of the management in an effective way. Overview: Nowadays, many companies use deceptive language while communicating their potential prospects in future, solely with the purpose of alluring the non-personal investors, who in the most of the cases, are unable to see through the motives of the management authority. They pay more heed to qualitative rather than quantitiave information, and end up getting swayed by the impression management strategies of the companies. Issues: Research has indicated that the non-professional investors are more inclined to suffer from cognitive bias and imitation, while choosing to invest in a company than the professional counterparts. These people experience what is termed as bounded rationality, that prevents them from making effective decisions, simply because they act on incomplete information and explore a very limited number of alternatives, before choosing to invest (Axjonow et al., 2016). Since the non-professional investors are growing in number, the way impression management can affect their decision-making process, can have a remarkable impact on the financial market as a whole. Analysis: More than often, the companies adopt the self-promotion strategy, as part of their impression management strategy, in tempting the attention of the non-professional investors. While they are dictated by the governmental laws to provide the most authentic information to the clients, they would deliberately distort the languages or alter the pattern in which information is being presented to the investors. For instance, research suggests that approximately 64% of the non-professional investors were less inclined to invest in a company, when negative information were being presented in the last part of the agreement paper (Hellmann et al., 2017). This is exactly the reason why negative information are kept in the middle, which part the investors tend to ignore the most, and the positive information are presented in the last part to influence investor decision. The same research suggests that 71% of the non-professional investors exhibited inclination to invest in a company, when positiv e information were being presented in the end (Hellmann et al., 2017). Position: If my view is to be considered, I would certainly state that the way impression management can affect the decision of a non-professional investor does not hold truth for the professional counterpart. The non-professional investors are much more susceptible to any kind of recency effect, as they lack any practical experience or knowledge that they could apply while investing in shares of a company. Consequently, I think that the textual presentation order and the graphical presentation can have a significant impact on their investment decision of the non-professional investors. Final Comments: To conclude, it is evident that different companies, especially the poor-performing companies employ the use of self-promotion strategies and others as part of their impression management strategies to improve their perception in the minds of the non-professional investors. With the change in text presentation order, or graphical cue, it becomes easier for the companies to influence the investment decision of the non-professional investors Reference List: Axjonow, A., Ernstberger, J., Pott, C. (2016). The impact of corporate social responsibility disclosure on corporate reputation: A non-professional stakeholder perspective.Journal of Business Ethics, 1-22. Hellmann, A., Yeow, C., De Mello, L. (2017). The influence of textual presentation order and graphical presentation on the judgements of non-professional investors.Accounting and Business Research,47(4), 455-470