Research On The Influence Of Annual Reports Information Disclosure On Investor Behavior Based On Dual-Process Theory

As a disclosure channel for companies to convey essential information such as operating conditions,values and management wisdom,annual reports have always been favored by analysts,investment consultants,scholars and individual investors.Financial information is the digital representation of company performance in the annual report,which is important and widely concerned.However,with the concept of graphic aesthetics permeating into every corner,more and more visual information such as pictures appear in the annual report,which used for supplement or misleading.In this study,two key elements of annual report information are extracted:financial information represented by earnings status and visual information represented by presidents' facial cue.Based on affective heuristics and dual-process theory,the behavioral experiment simulates the real investment environment and explores the impact of the company's annual report information disclosure on investor behavior.The study found that the annual report disclosure information can affect investors' behavior through two channels-the direct effect of rational processing and the indirect role of intuitive processing.By designing behavioral experiment of investment scenario simulation,this paper explores the influence of two different types of annual report information on investment behavior,and then explores the action path.The results show that financial information has a significant impact on investment decisions through rational evaluation system.Visual information exerts"visual premium"and activates investors' intuitive processing system,thus guiding rational evaluation results.When there is no significant difference in earnings,investors are more willing to invest in companies with relatively high trust in the chairman's face.When earnings are significantly different,investors' willingness will not be reversed by the influence of chairman's face trust,that is,disclosure of the chairman's face does not constitute impression management.Furthermore,through the analysis of the factors influencing the path of intuition system,it is found that both emotional experience and trust perception have a significant impact on the process:positive emotion and trust perception mediate the process,while negative emotion mediation effect is not significant.The conclusions provide direct research evidence for the market value of visual information in the annual report,explore the positive guiding role of the inherent characteristics of the company's president and executives on financial information,and provide a theoretical basis for the company's financial reports disclosure and regulatory measures of the CSRC.