Cognitive Aspects of Annual Reports: Field Independence/Dependence

The annual report is a communication instrument which may be used to differentiate among the various organizations in the business community. Both the results of economic activity (content), and the manner in which those results are presented (form),' constitute the message of the annual report (Li 1). Owing to the potential impact of the annual report on decision makers, the Securities and Exchange Commission and the American Institute of Certified Public Accountants,2 through their institutional pronouncements, act to develop user confidence in the information contained in the annual report. These pronouncements have in large measure been addressed to monitoring content, leaving the presentation format of the annual report a discretionary variable.' Any attempts to influence annual report user (stockholders, security