# Information overload and information overload (information overload)

- Canonical URL: https://www.gerhardmerk.de/information-overload-and-information-overload-information-overload
- Post ID: 587734
- Modified: 2023-07-25T21:01:58+00:00
- Language: en

## Definition

Term used to describe the fact that rule makers are demanding more and more information in reports, annual financial statements, quarterly reports, ad hoc announcements, letters to shareholders, etc., with the best of intentions (for the best). Annual reports are therefore already swelling into thick books with not infrequently more than 300 pages in DIN A 4 format. - However, the more information is presented, the more difficult it becomes to absorb it and (scientifically undisputed) the greater the proportion that is ignored by readers. - On the other hand, however, confidence in one's own judgment increases steadily with the amount of information presented. In the case of large amounts of information, therefore, - actual disclosure (information acquisition) is extremely low, - while, conversely, confidence in the abundance of information offered is very high. - In turn, companies take advantage of this situation and very cleverly hide unpleasant statements in bloated but insubstantial and boring text passages, often enriched with illustrations to attract the reader's attention. In this way, they ensure that little attention is paid to risks that are in fact accurately portrayed. In connection with the subprime crisis in 2007, this was revealed by many examples. - See investor, understandable, disclosures, obfuscated, daimonion, decision usefulness, General Accepted Accounting Principles, IAS 39, IFRS dialects, International Accounting Standards, International Accounting Standards Board, plain text, combination effect, freestyle, nothing, accounting, regulatory frenzy, feedback loop, salami tactics, consistency, substance-over-form principle, understandability, predictions, materiality, fitness for purpose. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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