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
