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Accounting information is known as the language of business, even though many researchers do not accept this as true (Bloomfield, 2008). Accounting language can be manipulated to create reality and it has considered the role played by preparers on creating reality via presentation of financial reporting. In addition, this conceptual paper argues that investors also create reality for themselves depending on their expectations on their investment portfolios and psychological biases on the decision-making process. The Prospect Theory states that investors would be more sensitive to unfavorable information rather than favorable. This conceptual paper hypothesizes on the concepts of impression management and halo effect to attenuate the impact of unfavorable information on investors’ judgments. Furthermore, we also hypothesize that investors create reality for themselves through self-deception because they find the status quo quite comfortable and want to protect their ego from damage.