The Informational Role of Imagery in Financial Decision Making: A New Approach

77 Pages Posted: 7 Sep 2019 Last revised: 6 Sep 2023

See all articles by Joshua Ronen

Joshua Ronen

New York University (NYU) - Department of Accounting

Tavy Ronen

Rutgers Business School -Newark and New Brunswick, Department of Finance & Economics

Mi Zhou

Virginia Commonwealth University

Susan Gans

West Chester University of Pennsylvania

Date Written: August 31, 2019

Abstract

We develop a novel approach to identify characteristics of images that are likely to, and found to, affect investment decisions. We also create new methodologies to quantify these characteristics. We hypothesize and find that our newly developed machine learning-based measure of informativeness—the degree to which the images convey information beyond the content embedded in textual narratives, which we refer to as additivity—has a significant incremental effect on funding beyond other image characteristics. Our exploration of the impact on financing decisions goes beyond existing imagery explorations within this developing research field.

Keywords: Visual characteristics; image informativeness; equity crowdfunding; machine learning, image-text interactions.

JEL Classification: G0

Suggested Citation

Ronen, Joshua and Ronen, Tavy and Zhou, Mi and Gans, Susan, The Informational Role of Imagery in Financial Decision Making: A New Approach (August 31, 2019). Available at SSRN: https://ssrn.com/abstract=3446180 or http://dx.doi.org/10.2139/ssrn.3446180

Joshua Ronen (Contact Author)

New York University (NYU) - Department of Accounting ( email )

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Suite 10-180
New York, NY 10012-1118
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212-998-4144 (Phone)
212-995-4599 (Fax)

HOME PAGE: http://www.stern.nyu.edu/~jronen/

Tavy Ronen

Rutgers Business School -Newark and New Brunswick, Department of Finance & Economics ( email )

1 Washington Park
Newark, NJ 07102
United States
973-353-5272 (Phone)

HOME PAGE: http://https://www.business.rutgers.edu/faculty/tavy-ronen

Mi Zhou

Virginia Commonwealth University ( email )

301 West Main Street
Richmond, VA 23284
United States

Susan Gans

West Chester University of Pennsylvania

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