Dynamic representation of financial ratios: A design and empirical test.

摘要

Information is often multidimensional and dynamic, which makes it difficult to communicate using traditional representations such as verbal descriptions or even graphics. However, the development of advanced visualization technology allows the creation of more effective representations. By taking a distributed cognition perspective and integrating several theories of visualization, this study formulated a theoretical model to examine the effects of information representation on a classic business decision-making task: bankruptcy prediction. The use of an animated visualization to represent dynamic information was compared with conventional tables and graphs. Findings from accounting and information systems literature were used to guide the design of the animated representation, Business Animator.; A laboratory experiment using factorial design was conducted to test the model, with participants being randomly assigned to view a static representation (table or graph) or Business Animator, and then to make bankruptcy predictions for thirteen firms. Accuracy and speed were measured. The results showed that animated representations were more accurate than static representations with the advantage being unrelated to the subject's level of domain knowledge; however, they were not significantly superior in terms of speed. Post hoc interviews indicated the subjects preferred the animations but also suggested potential changes in the design of Business Animator. The findings indicated that animation facilitated identification of the flows and problems in operating and financing processes, thereby improving the subjects' assessment of firm health.