Maria Gabriella Ceravolo, Vincenzo Farina, Lucrezia Fattobene, Lucia Leonelli and GianMario Raggetti
The purpose of this paper is to examine whether financial consumers are sensitive to presentational format of financial disclosure documents and whether this influences the…
Abstract
Purpose
The purpose of this paper is to examine whether financial consumers are sensitive to presentational format of financial disclosure documents and whether this influences the financial attractiveness of products.
Design/methodology/approach
In order to observe and measure consumers’ attention, the authors exploit the unobtrusive methodology of eye tracking on a sample of nonprofessional investors, applying an ecological protocol, through a cross-sectional design.
Findings
The analysis reveals that financial information processing and attention distribution are influenced by the way the information is conveyed. Moreover, some layouts induce individuals to rate the products as less financially attractive, independent of the information content. This suggests the importance of studying the neural mechanisms of investors’ behaviour in the scrutiny of financial product documents.
Practical implications
The results lead to recommend regulators and managers to study how investors respond to financial disclosure documents by exploiting neuroscientific techniques. Moreover, there is a role for the search of any benefit coming from emphasising specific sources of information inside documents.
Originality/value
This research investigates the influence of presentational format on consumers’ information processing measuring the underlying neurophysiological processes; the consequent perception of financial attractiveness is also explored.
Details
Keywords
Maria Gabriella Ceravolo, Vincenzo Farina, Lucrezia Fattobene, Elvira Anna Graziano, Lucia Leonelli and GianMario Raggetti
This study investigates whether colors red or blue in financial disclosure documents (Key Investor Information Documents – KIIDs) affect attention distribution toward the visual…
Abstract
Purpose
This study investigates whether colors red or blue in financial disclosure documents (Key Investor Information Documents – KIIDs) affect attention distribution toward the visual stimulus and the perception of financial attractiveness of the products.
Design/methodology/approach
In order to observe and measure financial consumers' visual attention, the unobtrusive methodology of eye-tracking is used on a sample of nonprofessional investors, applying an ecological protocol, through a cross-sectional design.
Findings
Financial information processing and visual attention distribution are influenced by the color of the KIID document, as red seems to attract attention, proxied by gazing behavior, more than blue. Red color, compared to blue, is also observed to push investors to rate the products as less financially attractive, especially when the product Risk Reward Profile is high.
Practical implications
The findings highlight the role of the basic visual properties of documents conveying financial information, prompting to investigate the unconscious and automatic mechanisms of individual's attention and its influence on decision making.
Originality/value
Using the eye-tracking tool, this study bridges neuroscience, color research, marketing and finance and provides new knowledge on the underlying neural mechanisms of financial consumers' behavior.