TCU Neeley Research Highlight – Combining leadership experience, Neeley faculty influence industry and academic leaders through research findings.
March 31, 2024
M.J. Neeley Professor of Accounting Karen Nelson and Assistant Professor of Accounting Karson Fronk, alongside other experts' research reveals that the Securities and Exchange Commission’s (SEC) push for visuals in financial reports has led to more companies using infographics in their filings. This study explores why companies use these graphics and their impact on market uncertainty.
Abstract
The Securities and Exchange Commission encourages the presentation of information or data in graphical form to improve users' ability to understand financial disclosures. We find a dramatic increase in the disclosure of both qualitative and quantitative infographics in 10-K filings over time and substantial cross-sectional variation in firms' choices regarding image types, data content, and the placement of infographics within 10-Ks. We provide evidence on factors associated with firms’ use of infographics and explore the persistence with which they are disclosed over time. Finally, we investigate the relation between the use of infographics and uncertainty in capital markets.
