Data Visualization and Infographics in 10-K Filings
48 Pages Posted: 9 Mar 2021 Last revised: 10 May 2021
Date Written: December 14, 2020
The Securities and Exchange Commission encourages the presentation of financial data in graphical form (infographics) to improve users’ ability to understand financial disclosures. We examine a large sample of infographics disclosed in 10-K filings and find a dramatic increase in their use from 2003-2020. We explore firm characteristics associated with the presentation of infographics and the types of information disclosed. We find significantly positive associations between infographics and the magnitude of both 10-K filing abnormal returns and analysts’ forecast revisions. The return results are attributable to both qualitative and quantitative infographics, but especially for those containing non-financial key performance indicators. The forecast revision results are attributable to infographics containing GAAP and macroeconomic information. Overall, our evidence suggests that infographics have become an important element of corporate disclosure.
Keywords: Disclosure, Investor communication, Infographics, Market reaction, Analyst forecast revision
JEL Classification: D83, G14, G18, M41
Suggested Citation: Suggested Citation