Thank you for participating in this experiment.

As a token of our appreciation, you will receive a flat payment of AUDX. However, your final payment is contingent on how your chosen investment performs relative to your investment position.

NEXT PAGE

In this experiment, you will have a stake in the earnings of a company that you will shortly choose to invest in. As derived from the performance of your investment choice relative to your current long investment position, the higher the actual earnings for Year 20X3 are relative to the consensus analysts’ forecast, the higher will be your compensation and vice versa.

You will-Receive an additional AUDY in payment for every 0.1 cent that your invested company’s actual earnings are higher than the consensus analysts’ forecast for Year 20X3.Lose an additional AUDY in payment for every 0.1 cent that your invested company’s actual earnings are lower than the consensus analysts’ forecast for Year 20X3.

Note: there is a cap of AUDZ on the additional amount that you could earn or loss.

NEXT PAGE

Moreover, you are requested to provide your earnings forecast for your chosen investment for Year 20X3. If your forecast estimate is the closest to the actual EPS for Year 20X3 out of all other participants in this study, you will win a prize of AUDZ.

NEXT

Please carefully answer the following two questions.

In the experiment as you have chosen to invest in company A by taking a long position, do you expect stock price and earning to increase or decrease in the near future?

Please Select:

In the experiment you were asked to take a long investment position in one of the companies. You have just chosen company B. A year has past. You have just reviewed the company’s 20X2 performance and received eight analysts’ forecasts for company A’s EPS for 20X3. They are $3.20, $2.50, $2.65 $3.35, 4.20, $3.70, $3.65 and $3.50. The range of the eight EPS is $2.50 to $4.20 and the consensus forecast from taking the average is $3.35. Your EPS estimate for 20X3 is $3.70. After the experiment it is revealed a year has passed and the actual EPS for 20X3 is $3.65. Which of the following formulas describes your payment for this experiment?

Please Select:

.

Understanding Check Question

START

REVIEW INFORMATION

Overall Instructions

Thank you for your participation in this study. In this study, we will ask you to assume the role of an investor considering investing in either one of two fictitious

companies.

Please read all the information provided carefully and press START to begin.

START

You have recently inherited a sum of money.

You are currently considering taking a long position in a company currently listed on the stock exchange.

By taking a long position, you stand to gain when the invested company increases in value and therefore by taking this position you expect the company to perform well both financially and non-financially in the future.

Through careful assessment, you have narrowed your investment choices to two companies within the retail industry:

Delish Food and Stylish Food.

Currently both companies are trading at AUD20 per share and you are contemplating taking a five thousand shares long position in one of the companies. .

NEXT PAGE

You have decided to review the financial and non-financial summary again before choosing the one company you want to invest in.

You believe this information contain all the differences between the two companies. That is, you strongly believe all other factors that you would consider in making this investment are similar across the two companies.

You believe you will be able to decide which company to invest in after reviewing the information.

REVIEW THE COMPANIES

is a national grocery retailer with stores spread across the nation. Delish food’s vision is to “provide the greatest and most complete assortments of healthy cooking ingredients so you can innovate your cooking for the family”. Delish food promotes healthy food, healthy lifestyle and general wellbeing of the society and the environment in the products they sell. Delish food is committed to continually source exotic food from around the world while holding weekly cooking classes in the local supermarkets and supporting cooking TV shows.

Stylish food operates a national grocery chain. Stylish food’s vision is “to provide simple or no step cooking that offers the best convenience and provides healthy alternatives for modern people like you”. Stylish prides themselves on their finest quality food while being committed to protecting the environment from where it is sourced and contributing to the society they serve. Stylish food is committed to focus their attention on innovating packaging so prepared meals are fresh and continually reconstituting their formula so it has less salt and sugar.

Performance in Snapshot for Yr 20X1 Performance in Snapshot for Yr 20X1

NEXT

NEXT

Please make a selection of the company you are willing to take a long (/short) position in-

It is important to remember that part of your payment is based on the performance of the investment position you choose. Please carefully select the company in which you would like to take a long (short) position in.

After reviewing the information provided, I have decided to take a ten thousand shares long/ short position in

Please press continue to proceed after finalizing your investment.

ContinueReview Information

Please type a brief explanation of your reason for taking this long position in Delish Food/ Stylish Food-

Continue

A year has just lapsed…

The retail industry has been growing steadily.

Delish Food have just released their Annual Report and Sustainability Report for Year 20X2. (or integrated report?)

As a stockholder, you had requested a paper copy of Delish Food’s 20X2 Annual Report (or integrated report?) which arrived in the mail the next day.

You have decided to review the performance of your latest investment: The 5000 shares long position in Delish Food.

You identified and decided to use the following extract from Delish Food’s 2012 Annual Report to review Delish Food’s 20X2 performances. As well you intend to use the information to inform your 20X3 earning per share forecast of Delish.

Please click “START MY REVIEW” to Start.

. START MY REVIEW

is a national grocery chain providing an assortment of food that customers are always satisfied with.

OUR MISSION: Deliver a wide range of quality food and revolutionize contemporary healthy eating and cooking.OUR STRATEGY: Delish Food’s strategy is to be a leading food supermarket accommodating customers’ need for healthy living and general well being.

Maintain balance sheet strength

Build our brand of healthy food and wellbeing

Enhance in-store experience

Increases engagement with local communities

Engender a strong team spirit

Maintain balance sheet strength

Build our brand of healthy food and wellbeing

Enhance in-store experience

Increases engagement with local communities

Engender a strong team spirit

Our Strategic Priorities

Investors – who provide us with capital

Customers – who believe in our products

Employees – who contribute to our success

Suppliers – who supply us with top quality produce

Communities – who support our operations

Investors – who provide us with capital

Customers – who believe in our products

Employees – who contribute to our success

Suppliers – who supply us with top quality produce

Communities – who support our operations

Our Key Stakeholders

FLIP TO NEXT PAGE

Our 2012 Performance

Balance sheet strength

Underlying profit

Growth in Return on Asset

Target+1.8%

Actual-2.3%

Target+2.3%

Actual-0.8%

Build our brand

% suppliers passed social responsibility audits

Brand recognition %

Target+60%

Actual75%

Target60%

Actual60%

In-store experience

Customer satisfaction index

Average queuing time

Target90

Actual95

Target5 minutes

Actual3.5 minutes

Engagement with local communities

% Reduction of Carbon footprint per sq ft of Selling Space

Contribution to farmer charities

Target5%

Actual5%

Target+8%

Actual+10%

Strong team spirits

Employee satisfaction

Lost time injury hours per employee

Target90%

Actual95%

Target0.5 hour

Actual0.1 hour

BACK REVIEW FINISHED

Note: All information have been assured by an accounting firm

You have just reviewed Delish Food’s performance for Year 20X2

Eight independent analyst forecasts for Delish Food’s earning for Yr 20X3 were also co-incidentally released on the day and they are:

(1) 139 cents (2) 163 cents (3) 135 cents (4) 142 cents (5) 143 cents

(6) 150 cents (7) 146 cents (8) 152 cents

The range of the eight EPS is 135 cents to 163 cents and the consensus forecast from taking the average is calculated to be 146 cents.

Please in the space provided, type what your EPS forecast for the Year 20X3 will be for Delish Food.

My EPS forecast for Delish Food for Yr 20X3 is cents

NEXT

Please answer ALL the following questions:

1. Please assess the potential that Delish Food’s stock price will appreciate in the near future?

2. Please indicate your preferred investment position regarding Delish Food’s shares given Delish Food’s disclosure.

1 2 3 4 5 6 7 8 9 10

Delish Food willdefinitely not appreciate

Delish Food willdefinitely appreciate

1 2 3 4 5 6 7 8 9 10

Definitely Short Position

DefinitelyLong Position

1 2 3 4 5 6 7 8 9 10

Very unsure Very sure

3. Please indicate how confident you are with your judgements and estimates.

NEXT

5. Please indicate do you consider Delish Food investable? 1 2 3 4 5 6 7 8 9 10

Absolutely notInvestable

Top Investment

1 2 3 4 5 6 7 8 9 10

Financial Information is most definitely more relevant than financial Information

Non-financial Information is most definitely more relevant than financial

Information

6. Please indicate to what extent you perceive non-financial information as more relevant relative to financial information

1 2 3 4 5 6 7 8 9 10

Financial Information is most definitely more useful than financial Information

Non-financial Information is most definitely more useful than financial

Information

7. Please indicate to what extent you perceive non-financial information as more useful relative to financial information

NEXT

8. Please indicate to what extent you perceive non-financial information as more important relative to financial information.

1 2 3 4 5 6 7 8 9 10

Financial Information is most definitely more important than financial Information

Non-financial Information is most definitely more important than financial

Information

Etc….

NEXT

Please answer the two questions below by checking the appropriate box.

Please indicate whether you gain or lose if Delish Food which you have invested increases in earning?

Gain Lose

Please indicate whether your compensation will be higher or lower if the actual 20X3 EPS is lower than the consensus analysts’ forecast?

Higher Lower

NEXT

DEMOGRAPHIC QUESTIONS Please complete the following demographic details in the spaces provided.

1. Gender

2. Age

3. Are you a full- time student? (Please Tick One) Yes. No

4. What were your majors in your undergraduate studies? (Please type)

5. Have you invested in any shares in the past? Yes No

NEXT

6. Are you planning to invest in shares in the near future? Yes No

7. Have you invested in, or are you planning to invest in, socially responsible funds? Yes No

Short term investor (less than 1 year) Long term investor (greater than 1year)

9. What tends to be your motive when investing in shares? Speculative profit motives Long term share ownership

8. Do you consider yourself as a short-term or long-term investor?

NEXT

10. Were you born in Australia? Yes No

If No:How long have you been in Australia? AndWhich country were you born in? ___________________

11. Please indicate if you have any work experience related to the disciplines below and the number of years of work experience?

Number of Years of work experience Finance

Accounting

Auditing

Others,

Please specify_____________________

FINISH