Data Visualization in Annual Reports – Impacting Investment Decisions

In the digital era, the presentation of financial information has transcended traditional narratives to incorporate advanced data visualization, a transformation that holds significant implications for annual report analysis and investment decision-making. Therefore, this paper explores the efficacy of data visualization techniques in conveying complex financial data in annual reports for investment decision-making. We used questionnaires as a data collection method to get the perspective of investors after giving them an analysis of various companies' financial statements (JP Morgan, Apple Inc. HR Wallingford, Brac Bank, and ACLL Ltd) presented visually. Upon collection of the data, a comprehensive analysis of questionnaire responses from surrogate investors was done to get a perspective on how investors view the use of data visualization in annual reports to help them make investment decisions. The majority of the respondents indicated that data visualization helps them easily understand annual reports thereby helping them make informed investment decisions. The findings illustrate the significance of data visualization in annual reports for investors when they want to make investment decisions based on the financial reports presented visually. The paper concludes that data visualization is a significant contributor to investors’ understanding of annual reports and thus helps them in making investment decisions. The contribution of this paper is that it will help companies understand the need of using data visualization to help investors clearly understand financial information and data. Some of the research limitations include biased viewpoint on the questions given to the surrogate investors. Additionally, it proposes a trajectory for future research, particularly the exploration of emerging technologies like AI and ML, to further refine data visualization practices in annual reports, thereby empowering stakeholders with unprecedented financial insight and foresight.