The authors show that the assessment of the financial statements and the subsequent court or not to invest in a company fraught with emotions, heuristics and physiological responses. They describe three separate aspects of the financial statements that have been proven to influence the reader's opinion of the company, and to show that the decision whether to invest in the firm away from the cold and calculated process that he was always present (and learning) to be.
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by Dilip Soman, Yoo Rin Source: Rotman School of Management, 5 pages. Publication Date: September 1, 2008. Prod. #: ROT071-PDF-ENG