An experimental study of the effect of financial and non-financial information on intention to invest in the bearish and bullish market

This study examines the effect on the intention to invest financial performance information (upward or downward net income trends) and non-financial performance information (strong or weak corporate social responsibility) in the bearish and bullish capital market conditions. By using a 2x2x2 factorial experiment, this study found the following: 1) participants have a stronger intention to invest when the company's financial performance shows an upward net income trend; 2) participants also have a stronger intention to invest when the company's CSR performance is strong; and 3) without paying attention to financial and non-financial information, a bullish capital market condition is a time when individuals have a strong intention to invest. It is also found that participants have a strong intention to invest in companies that have an upward net income trend when the capital market conditions are bullish. This study has the implication that bullish or bearish capital market conditions represent kinds of momentum that also explain the investors behaviour in utilising information that the company has provided.