Interaction between anchoring and framing in the reading of annual financial reports: experimental evidence
DOI:
https://doi.org/10.17524/repec.v20.e3904Keywords:
Finanças comportamentais, Vieses cognitivos, Efeito ancoragem, Efeito enquadramento, Relatórios financeirosAbstract
Objective: To investigate the occurrence of anchoring and framing effects in the reading and interpretation of annual financial reports and to examine whether the interaction between these biases acts as a modulating mechanism.
Method: An experiment was conducted using a between-subjects factorial design, with four experimental conditions and the control group. A total of 151 undergraduate students were used as proxies for nonprofessional investors. Data were collected online using eye tracking and analyzed using multivariate analysis of variance (MANOVA) and Games-Howell post hoc tests.
Results: The framing effect was observed only in the groups exposed to the high anchor and in the control group, which was not exposed to the anchor. In the groups that viewed the low anchor, the framing did not manifest consistently, suggesting a potential inhibitory effect. The anchoring effect was not identified.
Contributions: Although the literature has documented the robustness of anchoring and framing effects, investigations of their interaction have mostly focused on consumption decisions, with heterogeneous results. The findings of this study indicate that anchoring can modulate framing, suggesting that cognitive biases do not operate in isolation when financial reports are read. This reinforces the need for integrated approaches to research on these phenomena in behavioral accounting and finance.
Translation
This article is a translation in English of the article:
Interação entre ancoragem e enquadramento na leitura de relatórios financeiros anuais: evidências experimentais
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Hillenbrand, A., & Schmelzer, A. (2017). Beyond information: Disclosure, distracted attention, and investor behavior. Journal of Behavioral and Experimental Finance. 16, 14–21. https://doi.org/10.1016/j.jbef.2017.08.002.
Hirshleifer, D., & Teoh, S. H. (2003). Limited attention, information disclosure, and financial reporting. Journal of Accounting and Economics, 36, 337–386. https://doi.org/10.1016/j.jacceco.2003.10.002.
Holmqvist, K., & Andersson, R. (2017). Eye tracking: A comprehensive guide to methods, paradigms, and measures (2nd ed.). Lund Eye-Tracking Research Institute.
Huang, X., Nekrasov, A., & Teoh, S. H. (2018). Headline Salience, Managerial Opportunism, and Over- and Underreactions to Earnings. The Accounting Review, 93(6), 231–255. https://doi.org/10.2308/accr-52010.
Huberman, G. (2001). Familiarity breeds investment. Review of Financial Studies, 14(3), 659–680. https://www.jstor.org/stable/2696769.
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Jain, G., Gaeth, G. J., Nayakankuppam, D., & Levin, I. P. (2020). Revisiting attribute framing: The impact of number roundedness on framing. Organizational Behavior and Human Decision Processes, 161, 109–119. https://doi.org/10.1016/j.obhdp.2020.04.006.
Jain, G., Nayakankuppam, D., & Gaeth, G. J. (2021). Perceptual anchoring and adjustment. Journal of Behavioral Decision Making, 34(4), 581–592. https://doi.org/10.1002/bdm.2231.
Kahneman, D. (1992). Reference points, anchors, norms, and mixed feelings. Organizational Behavior and Human Decision Processes, 51(2), 296–312. https://doi.org/10.1016/0749-5978(92)90015-Y.
Kahneman, D. (2011). Thinking, Fast and Slow. Farrar, Straus and Giroux.
Kang, T., Park, D. H., & Han, I. (2018). Beyond the numbers: The effect of 10-K tone on firms’ performance predictions using text analytics. Telematics and Informatics, 35(2), 370–381. https://doi.org/10.1016/j.tele.2017.12.014.
Lee, S., & Pounders, K. R. (2019). Intrinsic versus extrinsic goals: The role of self-construal in understanding consumer response to goal framing in social marketing. Journal of Business Research, 94, 99–112. https://doi.org/10.1016/j.jbusres.2018.04.039.
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2026-07-03
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Modro, W. M., Poker Junior , J. H., da Silva Madaleno, M. T., Cohen, E. D., & Dario Capitani, D. H. (2026). Interaction between anchoring and framing in the reading of annual financial reports: experimental evidence. Journal of Education and Research in Accounting (REPeC), 20. https://doi.org/10.17524/repec.v20.e3904
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