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Academic Journal of Engineering and Technology Science, 2020, 3(8); doi: 10.25236/AJETS.2020.030804.

The impact of information disclosure mode on investors’ cognitive process


Jingshu Guo

Corresponding Author:
Jingshu Guo

School of Management, Shanghai University, Shanghai 200444


Information disclosure is critical for the functioning of an efficient capital market. Since most of the investors in the market are not fully rational, managers have the opportunity to affect investors’ decision by strategic news releases. This study conducts a neuroscience experiment with functional magnetic resonance imaging (fMRI) to explore how the human brain processes news when they are presented in different orders. This study provides direct empirical evidence of the link between activity in the human brain and the disclosure of accounting information. We find that when good news and bad news are released in various orders, the stock price would show significant difference. This study may help non-professional investors recognize information manipulation and provide policy makers with reference to policy revision of information disclosure.


information disclosure, neuroaccounting, fMRI

Cite This Paper

Jingshu Guo. The impact of information disclosure mode on investors’ cognitive process. Academic Journal of Engineering and Technology Science (2020) Vol. 3 Issue 8: 36-44. https://doi.org/10.25236/AJETS.2020.030804.


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