财务报表中披露与识别【外文翻译】.doc

1、本科毕业论文（设计）外文翻译题目财务报表附注信息披露的研究专业会计学外文出处SCHOOLOFBUSINESSUNIVERSITYOFWASHINGTON外文作者FRANKHODGE,JANEJOLLINEAUKENNEDYRECOGNITIONVERSUSDISCLOSUREINFINANCIALSTATEMENTSABSTRACTRESEARCHSUGGESTSTHATINVESTORSANDCREDITORSREACTLESSSTRONGLYTOINFORMATIONDISCLOSEDINFOOTNOTESTHANTOINFORMATIONRECOGNIZEDONTHEFACEOFFINA

2、NCIALSTATEMENTS,DUEATLEASTINPARTTOCOGNITIVEPROCESSINGLIMITATIONSEMERGINGTECHNOLOGIESEG,XBRLTHATFACILITATEDIRECTEDSEARCHESANDSIMULTANEOUSPRESENTATIONOFRELATEDFINANCIALSTATEMENTANDFOOTNOTEINFORMATIONCOULDPOTENTIALLYALLEVIATETHESELIMITATIONSWEUSEANEXPERIMENTTOINVESTIGATEWHETHERTHEUSEOFASEARCHFACILITATI

3、NGTECHNOLOGYAFFECTSHOWINDIVIDUALSREACTTORECOGNITIONVERSUSDISCLOSUREOFSTOCKOPTIONCOMPENSATIONWEFINDTHATTHEUSEOFSEARCHFACILITATINGTECHNOLOGYREDUCESDIFFERENCESINNONPROFESSIONALINVESTORSFINANCIALPERFORMANCEJUDGMENTSANDINVESTMENTDECISIONSCREATEDBYRECOGNITIONVERSUSDISCLOSUREADDITIONALLY,WEPROVIDEEVIDENCET

4、HATINVESTORSPERCEIVEGREATERDIFFERENCESINFINANCIALSTATEMENTRELIABILITYBETWEENRECOGNITIONANDDISCLOSUREWHENTHEYUSESEARCHFACILITATINGTECHNOLOGYOVERALL,OURFINDINGSSUGGESTTHATSEARCHFACILITATINGTECHNOLOGYIMPROVESTHETRANSPARENCYOFFINANCIALSTATEMENTINFORMATIONANDTHEREFOREMAYREDUCEINCENTIVESFORFIRMSTOLOBBYFOR

5、ORTOCHOOSEFOOTNOTEDISCLOSURETOMINIMIZETHEEFFECTSOFNEGATIVEINFORMATIONKEYWORDSRECOGNITIONDISCLOSURETRANSPARENCYXBRLTHEORYANDHYPOTHESESSTANDARDSETTINGANDRECOGNITIONVERSUSDISCLOSURETHEFASBSCONCEPTUALFRAMEWORKSTATESTHATANITEMSHOULDBERECOGNIZEDINTHEBODYOFTHEFINANCIALSTATEMENTSONLYIFIT1MEETSTHEDEFINITIONO

6、FAFINANCIALELEMENTEG,ASSET,REVENUE2ISMEASURABLEWITHSUFFICIENTRELIABILITY3ISRELEVANTTOUSERSDECISIONSAND4ISRELIABLEINTHESENSEOFBEINGREPRESENTATIONALLYFAITHFUL,VERIFIABLE,ANDNEUTRALSFACNO5,PARA63ITEMSTHATFAILTOMEETONEORMOREOFTHESECRITERIAARECANDIDATESFORDISCLOSUREACCORDINGTOJOHNSONANDSTOREY1982,ITEMSPR

7、IMARILYFAILRECOGNITIONTESTSDUETOUNCERTAINTYABOUTTHEITEMSEXISTENCEORITSMONETARYVALUEFINANCIALACCOUNTINGSTANDARDSRARELYALLOWRECOGNITIONANDDISCLOSUREASACCEPTABLEALTERNATIVESFORPRESENTINGFINANCIALSTATEMENTINFORMATIONONEEXCEPTIONISSTOCKOPTIONCOMPENSATIONINTHEEARLY1990S,CORPORATEMANAGERSANDSTANDARDSETTERS

8、ENGAGEDINVIGOROUSDEBATEOVERTHEPLACEMENTOFSTOCKBASEDCOMPENSATIONWITHINAFIRMSFINANCIALSTATEMENTSAFTERINTENSELOBBYING,THERESULTINGSTANDARD,STATEMENTOFFINANCIALACCOUNTINGSTANDARDSFASNO123,ACCOUNTINGFORSTOCKBASEDCOMPENSATIONFASB1995,ENCOURAGESFIRMSTOREPORTTHEFAIRVALUEOFSTOCKOPTIONCOMPENSATIONASANEXPENSEI

9、NTHEINCOMESTATEMENTBUTDOESNOTREQUIRETHISTREATMENTUNDERSFASNO123,FIRMSCANCHOOSETOFOLLOWTHEPRIORSTANDARD,ACCOUNTINGPRINCIPLESBOARDAPBOPINIONNO25,ACCOUNTINGFORSTOCKISSUEDTOEMPLOYEESAPB1972,ANDRECOGNIZEONLYTHEDIFFERENCEBETWEENTHEMARKETVALUEOFTHESTOCKANDTHEOPTIONEXERCISEPRICEONTHEDATEOFGRANTUSUALLYZEROAS

10、ANEXPENSEINTHEINCOMESTATEMENTINTHISCASE,FIRMSALSOMUSTDISCLOSETHEFAIRVALUEOFTHESTOCKOPTIONSCOMPENSATIONANDPROFORMAINCOMEINTHENOTESUNTIL2002,ONLYTWOFIRMSINTHEFORTUNE500,THEBOEINGCOMPANYANDWINNDIXIE,ELECTEDTORECOGNIZESTOCKOPTIONCOMPENSATIONINTHEINCOMESTATEMENTRECENTLY,HOWEVER,ANUMBEROFCOMPANIESHAVEANNO

11、UNCEDTHATTHEYWILLEXPENSEEMPLOYEESTOCKOPTIONCOMPENSATION,INCLUDINGCOCACOLACOMPANY,GENERALELECTRICCOMPANY,ANDBANKONECORPORATIONOTHERS,SUCHASINTEL,HAVEANNOUNCEDTHATTHEYWILLCONTINUETODISCLOSESTOCKOPTIONCOMPENSATIONINFORMATIONINTHEIRFOOTNOTESTHUS,INTHEFUTURE,THEREISLIKELYTOBEGREATERDIVERSITYINREPORTINGFO

12、RSTOCKOPTIONCOMPENSATIONAMONGCOMPANIES,ENHANCINGTHEIMPORTANCEOFUNDERSTANDINGUSERSREACTIONSTORECOGNITIONVERSUSDISCLOSURERESEARCHONRECOGNITIONANDDISCLOSUREBOTHARCHIVALEMPIRICALANDEXPERIMENTALRESEARCHHAVEEXAMINEDUSERSREACTIONSTORECOGNIZEDANDDISCLOSEDINFORMATIONINTHEARCHIVALEMPIRICALDOMAIN,RESEARCHONDIS

13、CLOSEDINFORMATIONISMOSTRELEVANTFORTHISSTUDY3ARCHIVALSTUDIESFINDTHATSTOCKPRICESREFLECTFOOTNOTEINFORMATIONLANDSMAN1986HARRISANDOHLSON1987BARTH1994,SUGGESTINGTHATINVESTORSVIEWDISCLOSEDINFORMATIONASRELEVANTANDATLEASTMINIMALLYRELIABLEWITHRESPECTTOSTOCKOPTIONCOMPENSATION,ABOODYETAL2001DOCUMENTTHATSTOCKPRI

14、CESARENEGATIVELYASSOCIATEDWITHFAIRVALUEMEASURESOFSTOCKCOMPENSATIONDISCLOSEDINTHEFOOTNOTESUNDERSFASNO123SEVERALSTUDIES,HOWEVER,HAVECONCLUDEDTHATPRICESPARTIALLYIGNORENOTEDISCLOSURES,RELATIVETOTHEEXPECTEDIMPACTOFTHISINFORMATIONFROMMODELSLINKINGSPECIFICFOOTNOTEINFORMATIONANDSTOCKPRICEHARRISANDOHLSON1987

15、LANDSMANANDOHLSON1990THEIMPLICATIONSOFTHESESTUDIESAREUNCLEARHOWEVER,BECAUSEDEPARTURESFROMTHEPREDICTEDMARKETREACTIONCOULDBEDUETOSEVERALFACTORSTHESEFACTORSINCLUDEINVESTORSINCOMPLETELYPROCESSINGFOOTNOTEDISCLOSURESDUETOCOGNITIVECOSTSORLIMITATIONS,INVESTORSDISCOUNTINGTHEFOOTNOTEDISCLOSURESDUETORELIABILIT

16、YCONCERNS,ANDMEASUREMENTERRORINTHEMODELSUSEDTOCALCULATETHEPREDICTEDREACTIONMOSTEXPERIMENTALRESEARCHINTHISAREAHASFOCUSEDONUSERSINFORMATIONPROCESSINGBYMANIPULATINGRECOGNITIONVERSUSDISCLOSUREININDIVIDUALJUDGMENTSETTINGSSAMIANDSCHWARTZ1992FINDTHATBANKERSASSESSHIGHERINTERESTRATES,LOWERMAXIMUMLOANS,ANDLOW

17、ERPROBABILITIESOFREPAYMENTWHENPENSIONLIABILITIESAREINCLUDEDINTHEBALANCESHEETRATHERTHANDISCLOSEDINTHENOTESALTHOUGHMOSTBANKERSNOTEDTHEDIFFERENCEINMETHODSBETWEENFIRMSIN3ARCHIVALTESTSOFRECOGNITIONVERSUSDISCLOSUREARERARESINCEMOSTACCOUNTINGSTANDARDSMANDATERECOGNITIONORDISCLOSUREINTHERARECASESWHEREMANAGERS

18、HAVEDISCRETION,FIRMSSELFSELECTIONOFACCOUNTINGMETHODREDUCESRESEARCHERSABILITIESTOMAKEINFERENCESABOUTINVESTORSUSEOFINFORMATIONEXAMININGDISCLOSUREVERSUSRECOGNITIONFORTHESAMEFIRMOVERTIMEALSOISPROBLEMATICSINCECHANGESINACCOUNTINGPOLICYEITHERARESELFSELECTEDORRESULTFROMMANDATEDCHANGESINACCOUNTING,WHICHMAYRE

19、FLECTCHANGESINTHEINFORMATIONSCHARACTERISTICSBERNARDANDSCHIPPER1994FINALLY,ARCHIVALRESEARCHTENDSTOFOCUSONINVESTORSOFPUBLICLYTRADEDCOMPANIESHOWEVER,EVENIFINVESTORSPROCESSFOOTNOTEINFORMATIONAPPROPRIATELY,MANAGERSHAVEINCENTIVESTOINFLUENCEOTHERSTAKEHOLDERSVIAFINANCIALREPORTINGCHOICES,EG,CREDITORS,EMPLOYE

20、ES,SUPPLIERSBOWENETAL1995THEWITHINSUBJECTSDESIGN,THEYDIDNOTADJUSTTHEIRJUDGMENTSACCORDINGLYOTHERSTUDIESFINDTHATINDIVIDUALSDONOTADJUSTFINANCIALSTATEMENTRATIOSFORDISCLOSEDITEMSRELATEDTOPENSIONSANDPOSTRETIREMENTBENEFITSHARPERETAL1987,1991HOWEVER,WILKINSANDZIMMER1983NOTETHATTHEEXPERIENCEDBANKERSINTHEIRST

21、UDYTOOKDISCLOSEDLEASESINTOACCOUNTINTHEIRLENDINGDECISIONSALTHOUGHTHEYTYPICALLYDIDNOTADJUSTFINANCIALRATIOSEXPLICITLYFORTHEDISCLOSEDLEASESCOLLECTIVELY,THEARCHIVALANDEXPERIMENTALRESEARCHINDICATESTHATFINANCIALSTATEMENTUSERSLIKELYDISCOUNTINFORMATIONDISCLOSEDINTHEFOOTNOTESRELATIVETOINFORMATIONRECOGNIZEDONT

22、HEFACEOFTHEFINANCIALSTATEMENTSWHILETHESESTUDIESDONTPROVIDEDEFINITIVECONCLUSIONSASTOTHEREASONSFORTHISDISCOUNTING,THEYSUGGESTTHATUSERSCOGNITIVEPROCESSINGOFDISCLOSEDINFORMATIONISAFACTORWETURNTOCOGNITIVEPROCESSINGRESEARCHFORFURTHERINSIGHTSONTHISISSUEIMPLICATIONSOFRECOGNITIONVERSUSDISCLOSUREFORUSERSJUDGM

23、ENTSANDDECISIONSASINDICATED,THEREARESEVERALPOSSIBLEREASONSWHYRECOGNITIONANDDISCLOSUREDIFFERENTIALLYINFLUENCEUSERSJUDGMENTSANDDECISIONSFIRST,GIVENRECOGNITIONCRITERIAINSFACNO5,STANDARDSETTERSORMANAGERSCHOICEOFRECOGNITIONVERSUSDISCLOSUREPERSECANHAVEIMPLICATIONSFORUSERSJUDGMENTSBYPROVIDINGSIGNALSABOUTIN

24、FORMATIONSRELEVANCEAND/ORRELIABILITYBERNARDANDSCHIPPER1994SECOND,RECOGNITIONVERSUSDISCLOSURECANAFFECTATLEASTSOMEUSERSJUDGMENTSFORREASONSRELATEDTOPROCESSINGCOSTSANDCOGNITIVELIMITATIONSBLOOMFIELD2002HIRSHLEIFERANDTEOH2002IFMANAGERSREALIZETHISANDCHOOSETOEXPLOITIT,ANINCENTIVEEXISTSTOLOBBYFORORCHOOSEDISC

25、LOSUREOFITEMSTHEYBELIEVEINVESTORSWILLPERCEIVENEGATIVELY4THEFIRSTREASONABOVEREFLECTSUSERSPERCEPTIONSOFDATALIMITATIONTHESECONDREFLECTSLIMITATIONSINTHEUSERSTHEMSELVESINTHISPAPER,WEFOCUSPRIMARILYONTHESECONDREASON,COGNITIVEPROCESSING,SINCEITISTHEMOSTINFLUENCEDBYSEARCHFACILITATINGTECHNOLOGYINORDERTOPROCES

26、SFINANCIALSTATEMENTINFORMATIONAPPROPRIATELY,USERSMUST1UNDERSTANDWHATINFORMATIONISRELEVANT2LOCATETHISINFORMATIONINTHEFINANCIALSTATEMENTSAND3EVALUATETHEIMPLICATIONSOFTHISINFORMATIONFORJUDGMENTSANDDECISIONS,BOTHALONEANDINCONJUNCTIONWITHOTHERINFORMATIONWITHRESPECTTOTHEFIRSTTWOSTEPS,RESEARCHSUGGESTSTHATU

27、SERSWHODONTUNDERSTANDTHERELEVANCEOFFOOTNOTEINFORMATIONMAYNOTACCESSTHISINFORMATIONPROCESSTRACINGRESEARCHIDENTIFIESBOTHADIRECTIVESEARCHSTRATEGY,INWHICHINDIVIDUALSSEARCHDIRECTLYFORSPECIFICFINANCIALSTATEMENTITEMS,ANDASEQUENTIALSEARCHSTRATEGY,INWHICHINDIVIDUALSREADTHEFINANCIALSTATEMENTSINTHEORDERREPORTED

28、BOUWMANETAL1987HUNTONANDMCEWEN1997DOCUMENTTHATFINANCIALANALYSTSWHOUSEADIRECTIVESEARCHSTRATEGYINANEXPERIMENTALFORECASTINGTASKHAVEBOTHHIGHERHISTORICALACCURACYATTHEIRBROKERAGEFIRMANDHIGHERACCURACYINTHEEXPERIMENTALTASKTHESERESULTSARECONSISTENTWITHMOREKNOWLEDGEABLEFINANCIALSTATEMENTUSERSFINDINGRELEVANTIN

29、FORMATIONREGARDLESSOFITSPLACEMENTINTHEFINANCIALSTATEMENTSANDLESSKNOWLEDGEABLEUSERSSIMPLYREADINGTHEINFORMATIONASPRESENTEDSINCEFOOTNOTESTYPICALLYAREAMONGTHELASTITEMSPRESENTEDINANANNUALREPORT,USERSWHOUSEASEQUENTIALSTRATEGYMAYREACHAN“OVERLOADED”COGNITIVESTATEPRIORTOREADINGTHEFOOTNOTESANDNOTACCESSTHISINF

30、ORMATION4SEEBERNARDANDSCHIPPER1994FOREXAMPLESOFCOMMENTLETTERSTOTHEFASBTHATARECONSISTENTWITHCONCERNSABOUTTHENEGATIVEEFFECTOFRECOGNITIONOFSTOCKOPTIONCOMPENSATIONONSTOCKPRICESTHESECOMMENTLETTERSSUGGESTTHATMANAGERSVIEWEDDISCLOSUREOFTHISINFORMATIONASACCEPTABLEEVENIFUSERSREADTHEFOOTNOTES,THEYMAYNOTUNDERST

31、ANDTHEIMPLICATIONSOFTHEINFORMATION,EITHERALONE,ORINCONJUNCTIONWITHRELATEDINFORMATIONPRESENTEDELSEWHEREINTHEFINANCIALSTATEMENTSRESEARCHFINDSTHATUSERSWHODONOTFULLYUNDERSTANDAFINANCIALITEMUSEPLACEMENTWITHINTHEBODYOFTHEFINANCIALSTATEMENTSASASIGNALOFTHENATUREANDIMPORTANCEOFFINANCIALINFORMATIONFOREXAMPLE,

32、MAINESANDMCDANIEL2000DOCUMENTTHATNONPROFESSIONALINVESTORSVIEWCOMPREHENSIVEINCOMEITEMSASMOREIMPORTANTFORASSESSINGFIRMPERFORMANCEWHENTHESEITEMSAREPRESENTEDINAPERFORMANCEINCOMESTATEMENTTHANINASTATEMENTOFSTOCKHOLDERSEQUITYTHISRESEARCHSUGGESTSTHATLESSKNOWLEDGEABLEUSERSMAYAUTOMATICALLYASSUMETHATDISCLOSEDI

33、NFORMATIONISLESSIMPORTANTTHANRECOGNIZEDINFORMATIONDUETOITSPLACEMENTADDITIONALLY,GIVENTHEIRSEQUENTIALPROCESSING,LESSKNOWLEDGEABLEUSERSMAYHAVEDIFFICULTYCONNECTINGRELATEDINFORMATIONDISPERSEDTHROUGHOUTFINANCIALREPORTSANDTHUSFAILTOINTEGRATEFOOTNOTEINFORMATIONWITHINFORMATIONPRESENTEDINTHEBODYOFTHEFINANCIA

34、LSTATEMENTSFINALLY,EVENIFUSERSAREABLETOACCOMPLISHALLTHREEPROCESSINGSTEPS,THEYWILLNOTDOSOIFTHEYEXPECTTHECOGNITIVECOSTSOFPROCESSINGFOOTNOTEINFORMATIONTOEXCEEDTHEBENEFITSRESEARCHINDICATESTHATCOGNITIVEPROCESSINGCOSTSINFLUENCEEVENPROFESSIONALUSERSJUDGMENTSANDDECISIONSHIRSTANDHOPKINS1998ANALYSTSAPPEARTOIG

35、NOREINFORMATIONTHEYBELIEVEEXANTEWILLNOTPROVIDEIMPORTANTINFORMATIONINSUMMARY,RESEARCHINDICATESTHATCOGNITIVELIMITATIONSANDPROCESSINGCOSTSCANCAUSEINVESTORSTOPLACELESSWEIGHTONDISCLOSEDITEMSTHANRECOGNIZEDITEMSFORREASONSUNRELATEDTOINFORMATIONRELEVANCEORRELIABILITYRESEARCHALSOSUGGESTSTHATLESSKNOWLEDGEABLEU

36、SERSEG,NONPROFESSIONALINVESTORSAREMORELIKELYTHANKNOWLEDGEABLEUSERSEG,FINANCIALANALYSTSTOFAILTOPROCESSFOOTNOTEINFORMATIONAPPROPRIATELYINFORMATIONPROCESSINGANDSEARCHFACILITATINGTECHNOLOGYXBRLUSESPREDEFINEDDATATAGSTHATPROVIDEINFORMATIONABOUTTHECONTENTANDSTRUCTUREOFADATASET,ALLOWINGSEARCHTECHNOLOGYTOMOR

37、EEFFECTIVELYCATEGORIZEANDPRESENTTHEINFORMATIONWITHKNOWLEDGEOFTHELABELSASSOCIATEDWITHTHEDATATAGS,USERSOFELECTRONICFINANCIALREPORTSCANEASILYEXTRACTANDCUSTOMFORMATINFORMATIONTOSUITTHEIRANALYSES5FOREXAMPLE,INOURCONTEXTOFSTOCKOPTIONCOMPENSATION,AUSERCANSEARCHFOR“COMPENSATIONORSALARYEXPENSE,”ANDRETRIEVESI

38、MULTANEOUSLYALLITEMSINTHEFINANCIALSTATEMENTSWITHTHATDATATAG,WHETHERINTHEBODYOFTHESTATEMENTSORINTHEFOOTNOTESTECHNOLOGYTHATFACILITATESDIRECTEDSEARCHESPOTENTIALLYMITIGATESCOGNITIVEPROCESSINGCOSTSANDLIMITATIONSTHATLEADTODIFFERENCESINUSERSJUDGMENTSANDDECISIONSBETWEENFIRMSTHATCHOOSERECOGNITIONVERSUSDISCLO

39、SUREXBRLDATATAGSHELPACCOMPLISHTHISBYPROVIDINGDETAILEDINFORMATIONABOUTTHECONTENTANDSTRUCTUREOFTHEDATA,ALLOWINGSEARCHENGINESTOEFFECTIVELYPERFORMADIRECTEDSEARCHANDSIMULTANEOUSLYPRESENTRELATEDFINANCIALSTATEMENTANDFOOTNOTEINFORMATIONADDITIONALLY,SEARCHFACILITATINGTECHNOLOGYCANOVERCOMEUSERSKNOWLEDGELIMITA

40、TIONSBYACTINGASADECISIONAIDTHATIDENTIFIESRELATEDINFORMATIONANDPRESENTSITSIMULTANEOUSLY,PROVIDINGUSERSWITHANOPPORTUNITYTOINTEGRATEDATABETTERANDMAKEAPPROPRIATECOMPARISONSBETWEENFIRMSTHATCHOOSERECOGNITIONVERSUSDISCLOSURE6LARKINANDSIMON1987ARGUETHATPRESENTINGINFORMATIONINAWAYTHATENHANCESTHESTRUCTUREOFTH

41、EDATA5THEABILITYTOPREPARECUSTOMREPORTSTHATCOMPAREANDEVALUATETHEFINANCIALSTATEMENTSOFDIFFERENTCOMPANIESEXPLAINSTHEATTRACTIONOFXBRLFORINVESTMENTANALYSTSTHENASDAQHASENGAGEDINAPILOTPROGRAMTOALLOWUSERSTOEXPERIENCETHESEBENEFITSOFXBRLTHISPILOTPROGRAM,UNDERTAKENINCONJUNCTIONWITHMICROSOFTANDPRICEWATERHOUSECO

42、OPERS,PROVIDESINVESTORSWITHACCESSTOFIVEYEARSOFXBRLFORMATTEDFINANCIALDATAFOR21NASDAQLISTEDCOMPANIESEDGAR,INCALSOHASLAUNCHEDAPUBLICREPOSITORYFORCOMPANYFINANCIALSTATEMENTSTAGGEDINXBRL,CALLEDXBRLEXPRESSASOFAUGUST2002,79FIRMSARELISTEDONXBRLEXPRESS6ALTHOUGHSEARCHABLETECHNOLOGYHELPSALLEVIATECOGNITIVELIMITA

43、TIONSANDPROCESSINGCOSTS,ITSPRESENCEDOESNOTELIMINATEALLPROBLEMSASSOCIATEDWITHTHESELIMITATIONSANDCOSTSUSERSMUSTUSETHESEARCHTECHNOLOGYTOOBTAINITSBENEFITSADDITIONALLY,ALTHOUGHTHESEARCHABLETECHNOLOGYPROVIDESALLINFORMATIONINONEPLACE,ITDOESNOTINDICATEHOWTOEVALUATEANDINTEGRATETHISINFORMATIONFINANCIALSTATEME

44、NTUSERSMUSTBRINGTHISKNOWLEDGETOTHETASKANDFACILITATESUSERSLINKINGRELEVANTINFORMATIONALLOWSUSERSTOMOREEFFICIENTLYANDOFTENEFFECTIVELYACQUIREANDUSETHEINFORMATIONFORAFIRMWITHOUTSTANDINGSTOCKOPTIONS,REPORTEDNETINCOMEISHIGHERWHENTHEFIRMCHOOSESTODISCLOSESTOCKOPTIONCOMPENSATIONINTHEFOOTNOTESTHANWHENTHEFIRMRE

45、COGNIZESSTOCKOPTIONCOMPENSATIONONTHEFACEOFITSINCOMESTATEMENTWEEXPECTTHEDIFFERENCEINREPORTEDNETINCOMETOINFLUENCEUSERSFINANCIALPERFORMANCEJUDGMENTSUNLESSTHEYADJUSTNETINCOMEFORSTOCKOPTIONCOMPENSATIONDISCLOSEDINTHEFOOTNOTESWEBELIEVESEARCHFACILITATINGTECHNOLOGYWILLREDUCETHEINFLUENCEOFRECOGNITIONVERSUSDIS

46、CLOSUREBYMAKINGTHEFIRMSSTOCKOPTIONCOMPENSATIONREPORTINGCHOICEMORETRANSPARENTANDDIRECTINGATTENTIONTOTHEPROFORMAINCOMESTATEMENTEFFECTSOFSTOCKOPTIONCOMPENSATIONTHATISDISCLOSEDINFOOTNOTESH1STATEDINALTERNATIVEFORMREFLECTSOURPREDICTIONASTOTHEEFFECTOFSEARCHFACILITATINGTECHNOLOGYONUSERSFINANCIALPERFORMANCEJ

47、UDGMENTSH1INTHEPRESENCEOFSEARCHFACILITATINGTECHNOLOGY,USERSFINANCIALPERFORMANCEJUDGMENTSWILLBELESSINFLUENCEDBYTHECHOICEOFRECOGNITIONVERSUSDISCLOSUREOFSTOCKOPTIONCOMPENSATIONTHANINTHEABSENCEOFSEARCHFACILITATINGTECHNOLOGYIFUSERSINVESTMENTDECISIONSINCORPORATETHEIRFINANCIALPERFORMANCEJUDGMENTS,INVESTMEN

48、TDECISIONSSHOULDREFLECTTHEPREDICTIONSMADEINTHEPRIORHYPOTHESISSPECIFICALLY,H1PREDICTSTHATSEARCHFACILITATINGTECHNOLOGYWILLLEADUSERSTOBELESSINFLUENCEDBYDIFFERENCESINFINANCIALPERFORMANCENETINCOMEBETWEENRECOGNITIONANDDISCLOSUREWESTATETHECORRESPONDINGHYPOTHESISWITHRESPECTTOINVESTMENTDECISIONSBELOWH2INTHEP

49、RESENCEOFSEARCHFACILITATINGTECHNOLOGY,USERSINVESTMENTDECISIONSWILLBELESSINFLUENCEDBYTHECHOICEOFRECOGNITIONVERSUSDISCLOSUREOFSTOCKOPTIONCOMPENSATIONTHANINTHEABSENCEOFSEARCHFACILITATINGTECHNOLOGYSEARCHFACILITATINGTECHNOLOGYMAYALSOAFFECTOTHERREASONSFORADIFFERENTIALUSERREACTIONTORECOGNITIONVERSUSDISCLOSURESPECIFICALLY,REASONSRELATEDTOPERCEIVEDFINANCIALSTATEMENTRELIABILITYSUCHASINHERENTDIFFERENCESINRELEVANCE/RELIABILITYANDMANAGERSUSEOFDISCLOSURETODOWNPLAYNEGATIVEINFORMATIONSEARCHFACILITATINGTECHNOLOGYLIKELYWILLMAKEDIFFERENCESINRECOGNITION/DISCLOSUREPOLICIESBETWEENC