A Further Investigation Of Tables Versus Graphs For Decision-Making: Does Accounting Knowledge Make A Difference?

Abstract

This research uses cognitive processing and cognitive induction theory to examine whether accounting knowledge affects a decision-maker’s performance when using tables or graphs to perform a bankruptcy prediction task.  A laboratory experiment was conducted using a 2x2 between-subjects design where accounting knowledge (low vs. high) is crossed with information presentation format (tabular vs. graphical).  The results suggest that accounting knowledge does affect the use of alternative information presentation formats.