What influences online reviews’ perceived information quality?

2020 ◽  
Vol 38 (2) ◽  
pp. 273-296 ◽  
Author(s):  
Linlin Zhu ◽  
He Li ◽  
Wu He ◽  
Chuang Hong
Keyword(s):  
Multimedia Information ◽  
Information Quality ◽  
Online Reviews ◽  
Product Type ◽  
Practical Significance ◽  
Content Type ◽  
Information Richness ◽  
Study Results ◽  
The Impact

Purpose Online reviews presented in the format of multimedia information, such as pictures and videos, continue to emerge, but whether the richness of multimedia information can enforce the quality of online reviews has remained uncertain. The purpose of this paper is to examine the differences in the perceived information quality of online reviews, based on the information richness theory, emotional polarity and product type. Design/methodology/approach This is a Web-based experiment in which 12 groups constructed at different levels of these three factors were designed for the purpose of obtaining data. Findings The study results show that under different positive and negative emotional polarities, different information richness and product types have different effects on perceived information quality; for different product types, positive and negative emotional polarity have different effects on perceived information quality. For “search” products, the perceived information quality of online reviews with low information richness is high; under different information richness, different emotional polarity and product types have different effects on perceived information quality. Practical implications This paper has important practical significance for the management of e-commerce platforms for online reviews. Originality/value This paper on the perceived information quality of online reviews puts more focus on the formal features of online reviews and aims to discover the relationships between different directions for perceived information quality under the impact of interaction of formats, emotional polarity and product type. The study hopes to further strengthen the application of the information richness theory in the field of online reviews research and to measure perceived information quality from a variety of aspects.

Does negative information in MD&A can reduce stock crash risk?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jianmai Liu
Keyword(s):  
Information Asymmetry ◽  
Information Disclosure ◽  
Stock Price ◽  
Negative Information ◽  
Bad News ◽  
Practical Significance ◽  
Crash Risk ◽  
Content Type ◽  
The Impact

Purpose As an important part of the disclosure of listed companies' annual reports, MD&A will disclose some "bad news" about the company. The purpose of this paper is to study whether such "bad news" can reduce information asymmetry and alleviate the risk of stock price crash remains to be seen. Design/methodology/approach Based on the sample of A-share listed companies from 2007 to 2016, the authors examine whether the negative information in MD&A could reduce stock price crash risk. Findings It is found that the negative information in MD&A does not reduce future crash, which indicates that the negative information in MD&A does not alleviate the information asymmetry. Further, it is also found this is due to the low readability of negative information which leads to the negative information not successfully released into the market timely. Only highly readable negative information can alleviate information asymmetry and suppress crash risk. In addition, the authors also find in the companies with more investor surveys negative tone is negatively correlated with crash risk, which means that investor surveys could help investors interpret the negative information in MD&A and alleviate stock price crash risk. Practical implications The practical significance of this article: this paper suggests that investors should carefully identify the quality of negative information in MD&A and pay attention to other quality characteristics besides credibility. This paper suggests that the regulator should pay attention not only to whether to disclose and the amount of disclosure but also to the quality of information disclosure, such as readability, so as to restrict management's strategic behavior in information disclosure. Originality/value First, different from previous studies on the impact of information disclosure on crash risk, this paper directly explores the impact of information in MD&A on stock price crash risk from the perspective of negative information disclosure that management most want to hide. It supplements the literature on the impact of information disclosure on stock price crash risk. Second, this paper studies the interaction between information tone and readability and its impact on the risk of stock price crash. Some studies believe that the credibility of negative news is higher and investors' reaction may be stronger. However, this paper finds that the disclosure of negative information may not be absorbed by the market because of the low readability. Third, this paper finds that investor surveys can help information users to interpret negative information and alleviate the risk of stock price crash, which shows that information disclosure of different channels will complement each other and improve information efficiency. Therefore, it advocates different information disclosure channels which has important practical significance for improving market pricing efficiency and reducing investment decision-making risk.

scholarly journals An empirical analysis of the relationship between the information quality of CSR reporting and reputation among publicly traded companies in Spain

2017 ◽  
Vol 30 (1) ◽  
pp. 87-107 ◽  
Author(s):  
Andrea Pérez ◽  
Carlos Lopez-Gutierrez
Keyword(s):  
Stock Market ◽  
Corporate Reputation ◽  
Information Quality ◽  
Management Systems ◽  
Content Type ◽  
Csr Reporting ◽  
The Impact ◽  
The Relationship ◽  
Spanish Stock Market

Purpose Supported by the principles of the legitimacy theory, the purpose of this paper is to explore the relationship that exists between the information quality of the corporate social responsibility (CSR) reporting provided by the most liquid companies operating in the Spanish Stock Market and their corporate reputation. Design/methodology/approach Three regression models are tested with panel data collected for a sample of the 35 most liquid companies operating in the Spanish Stock Market between 2004 and 2014. Findings The findings show that two axes of information quality (i.e. content and management systems) should be necessarily controlled by companies in order to improve their corporate reputation through their CSR reporting. The content axis refers to the compliance of CSR reports with the provision of qualitative, quantitative, and evaluative information concerning the impacts of the CSR of the company on society and the environment. The management systems axis refers to the compliance of CSR reports with the disclosure of details about the policies, plans, and actions that companies implement to assure an effective management of CSR initiatives. Originality/value Previous literature exploring the relationship between corporate reporting and reputation has frequently focused on either the impact of the quantity of financial and CSR information reported by companies and the role of information quality, but only in reference to a number of specific themes (environment, customers) and not to the full range of information covered by CSR reports. The authors of this paper extend on previous academic literature by empirically evaluating the relationship between two dimensions of the information quality of CSR reporting (content and management systems) and the corporate reputation of companies operating in the Spanish Stock Market.

scholarly journals The effect of disclosure regulation on the bias and accuracy of management earnings forecasts in Malaysian IPO prospectuses

2017 ◽  
Vol 15 (1) ◽  
pp. 59-77 ◽  
Author(s):  
Mohammed Abdullah Ammer ◽  
Nurwati A. Ahmad-Zaluki
Keyword(s):  
Initial Public Offering ◽  
Voluntary Disclosure ◽  
Earnings Forecasts ◽  
Management Earnings Forecasts ◽  
Multivariate Statistical ◽  
Disclosure Regulation ◽  
Content Type ◽  
Study Results ◽  
The Impact

Purpose This paper aims to examine the impact of disclosure regulation on the levels of bias and accuracy in management earnings forecasts disclosed in the prospectuses of Malaysian initial public offering (IPO). Specifically, the authors investigated the two environments of regulation (mandatory versus voluntary) to draw some conclusions regarding the benefits of regulating disclosure of management earnings forecasts. Design/methodology/approach A sample of 111 Malaysian IPOs listing on the Main Market of Bursa Malaysia from January 1, 2004 to February 29, 2012 was used. The paper uses both univariate and multivariate statistical analyses on this sample of IPOs. Findings The empirical results of these multivariate regressions indicated that disclosure regulation has positive and significant impact on the bias and accuracy of management earnings forecasts disclosed in IPO prospectus. In general, the study results suggest that using disclosure regulation to improve the quality of IPO earnings forecasts can be, to some extent, an effective strategy. Practical implications The findings of this study have important implications for regulators and investors. The findings can provide them some relevant insights on the improvements to the earnings forecasts accuracy and trends of the forecast (optimistic or pessimistic) after the change from mandatory to voluntary disclosure. Thus, the authorities may learn whether this change is an effective policy or whether the regime of mandatory disclosure was better for IPO companies and should be reversed. Originality/value This study is regarded as the first attempt to investigate the impact of reforms in disclosure regulation on the quality of management earnings forecasts of IPO prospectuses in a developing nation such as Malaysia. In spite of this, the paper focuses on a single country, and it contributes significant insights to the debate about the credibility of IPO management earnings forecasts.

Postmodernist and consumerist influences on information consumption

Kybernetes ◽  
2014 ◽  
Vol 43 (6) ◽  
pp. 924-934 ◽  
Author(s):  
Arthur R. Taylor
Keyword(s):  
Information Technology ◽  
Information Quality ◽  
Information Dissemination ◽  
Information Science ◽  
Relevance Theory ◽  
Information Production ◽  
Quality Of Information ◽  
Content Type ◽  
The Impact

Purpose – The statement “information is a difference that makes a difference” implies causal relationships between information bits. This relationship includes the use or consumption of information. It is this consumption of information in the context of information science, consumerism, postmodernism, and the vast information technology changes of the past decades that converge to create an environment in which the veracity and general quality of information is challenged. The purpose of this paper is to examine information consumption in this context. Design/methodology/approach – This paper will examine the consumption of information within the context of information science relevance theory, consumerism, postmodernism, and significant changes in information technology, providing some historical context and examining the impact of the convergence. Relevant arguments and theory will be presented as evidence of the impact of this convergence on the quality of information. Findings – Dimensions of information quality are examined in relation to consumerism and postmodernism. Postmodern thought embraces the market and consumerism. Information production (journalism, mass media) is yet another cultural product in the market. Information production cast into the market framework is influenced by the revised sequence of capital consumer markets where demand control through advertising and marketing and pursuit of additional surplus value impact the quality of information. This leads to biased and fragmented dissemination of information. Breakdown of traditional control structures is another side effect of this convergence, leading to prosumerism (amateur) information dissemination with similar impacts on information quality. Originality/value – This paper provides a cross-disciplinary examination of the current convergence of information science, postmodernism, and capital markets within the context of consumerism. It identifies evidence of the impact of this convergence on the reduced quality of information being disseminated and consumed and provides a basis for further discussion and examination.

The impact of communication channels on communication style and information quality for hotel loyalty programs

2016 ◽  
Vol 7 (1) ◽  
pp. 100-116 ◽  
Author(s):  
Orie Berezan ◽  
Michelle Yoo ◽  
Natasa Christodoulidou
Keyword(s):  
Communication Channel ◽  
Online Survey ◽  
Information Quality ◽  
Communication Channels ◽  
Loyalty Programs ◽  
Communication Style ◽  
Loyalty Program ◽  
Content Type ◽  
Study Results ◽  
The Impact

Purpose – The purpose of this study is to evaluate the impact of communication channels on communication style and information quality as perceived by loyalty program members. Design/methodology/approach – An online survey was utilized to collect data, and multivariate analysis of variance was used to test the study hypothesis. Findings – Study results indicated that the choice of a communication channel has a significant impact on the perceived communication style and information quality. Research limitations/implications – The use of an online survey restricted the ability to generalize findings beyond those that use the internet. Replicating this study in other areas where customers seek information outside of loyalty programs would provide valuable insight into the impact of communication channels on communication style and perceived quality of communication. Practical implications – Communication style and information quality have been shown to impact customer loyalty. The results of this study indicate that the type of communication channel used impacts style and information quality, and thereby loyalty. Social implications – Executives should use these research findings as a guide to how they should structure and maintain relationships with their loyalty members. Originality/value – This manuscript provides executives with a taxonomy of the tools and channels available for communicating information to loyalty program members.

Examining the relationship between the price, the characteristics and the visitor evaluation of attributes of Italian farmhouses with an educational farm

2019 ◽  
Vol 75 (5) ◽  
pp. 827-839 ◽  
Author(s):  
Rosa Maria Fanelli
Keyword(s):  
A Priori ◽  
Principal Component ◽  
Online Reviews ◽  
Latent Factors ◽  
Content Type ◽  
Visitor Satisfaction ◽  
Main Determinants ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between the price charged for a guest room in a farmhouse with an educational farm, the farmhouse characteristics and the visitor evaluation of the principal external and internal farmhouse attributes. Design/methodology/approach A large sample of 10,880 visitor reviews, extrapolated from the websites of 399 Italian farmhouses with an educational farm (FEF), was analyzed. Principal component analysis (PCA) was performed to identify the main latent dimensions of the farmhouses (visitor satisfaction with farmhouse attributes, farmhouse dimensions, visitor frequency, farmhouse services, types of accommodation and altitude) that affect the price charged for a guest room. Subsequently, multivariate regression was applied to measure the impact of these new latent factors on the price. Findings Overall, the results indicate that the price of a farmhouse with an educational farm – in the context of this niche of the Italian agritourism sector – reflects the visitor evaluation of the farmhouse attributes (especially activities and facilities available in the surrounding countryside), the farmhouse dimensions, the types of accommodation, the number of services on offer and the presence of connectivity (WI-FI). In addition, the results reveal that the price represents an important driver that guides guests in their choice of a farmhouse and that it affects visitor satisfaction with farmhouse attributes. Research limitations/implications Because of the sample chosen, the data gathered are limited to one type of organization – Italian FEF. Furthermore, it may be important to investigate in more depth some issues that remain partly unanswered that concern this niche of the Italian agritourism sector. Practical implications Thanks to the identification of latent dimensions by PCA and the examination of their impact on the farmhouse price, farmhouse operators can understand a priori the main determinants on which to focus to improve the quality of activities and facilities available in the farmhouse location to better satisfy visitor expectations. Originality/value This study provides new and practical insights into the farmhouse experience in Italian municipalities, an area where very limited research has been conducted. Indeed, this is one of the few studies to focus on online reviews to evaluate more than two farmhouse attributes and their impact on pricing.

What drives Muslim Malaysian consumers’ general attitude towards religious advertising?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Waqas
Keyword(s):  
Structural Equation ◽  
Online Survey ◽  
Product Information ◽  
Practical Significance ◽  
Surprising Result ◽  
Social Image ◽  
Content Type ◽  
General Attitude ◽  
The Impact

Purpose Given the increased interest in the practical significance of the general attitude towards religious advertising, the purpose of this paper is to examine what influences consumers’ general attitude towards religious advertising in Malaysia. Design/methodology/approach An analytical research design was used to examine the impact of five factors (attitude towards the purpose/goal of the religious advertising [attitude institution], the quality of the message [attitude instrument], the information presented in the religious advertising about the product [product information], the social image associated with the advertised product [social image] and the hedonic pleasure owing to the advertisement of the product or service [hedonic pleasure]) on the general attitude towards religious advertising. Data were collected using an online survey (n = 210) and were analysed using structural equation modelling method. Findings The research found that the attitude towards the institution of advertising and the hedonic pleasure significantly influence the general attitude towards religious advertising. However, the quality of the advertisement, social image and product information were found to be insignificant predictors. Overall, this is a surprising result, where consumers place their trust in the reputation of the provider of the product or service and act based on the stimulus of good feeling the advertisement converse to them. Originality/value This paper fills the gap in the research, as there are very few studies done on religious advertising. This paper has presented ways to improve practices of religious advertising.

scholarly journals Improving information quality of Wikipedia articles with cooperative principle

2017 ◽  
Vol 41 (6) ◽  
pp. 797-811 ◽  
Author(s):  
Miloš Fidler ◽  
Dejan Lavbič
Keyword(s):  
Online Survey ◽  
Information Quality ◽  
Relevant Information ◽  
Student Needs ◽  
Single Measure ◽  
Content Type ◽  
Cooperative Principle ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the impact of cooperative principle on the information quality (IQ) by making objects more relevant for consumer needs, in particular case Wikipedia articles for students. Design/methodology/approach The authors performed a quantitative study with participants being invited to complete an online survey. Each rater evaluated three selected and re-written articles from Wikipedia by four IQ dimensions (accuracy, completeness, objectivity, and representation). Grice’s maxims and submaxims were used to re-write articles and make them more relevant for student cognitive needs. The results were analyzed with statistical methods of mean, standard deviation, Cronbach’s α, and ICC (two-way random model of single measure). Findings The study demonstrates that Wikipedia articles can be made more relevant for student needs by using cooperative principle with increase in IQ and also achieving higher consistency of students’ scores as recent research. In particular, students in the research perceived the abstract, constructed with cooperative principle, more objective and complete as reported in recent research. Practical implications The work can benefit encyclopedia editors to improve IQ of existing articles as well as consumers that would obtain more relevant information in less reading time. Originality/value This is one of the first attempts to empirically investigate the application of cooperate principle to make objects more relevant for consumer needs and impact of this on IQ. IQ improvement evidence is provided and impacts on IQ dimensions such as objectivity, completeness, accuracy, and representation for research community to validate and compare results.

Walking a mile in their shoes: user workarounds in a SAP environment

2016 ◽  
Vol 24 (2) ◽  
pp. 185-204 ◽  
Author(s):  
Dawna M. Drum ◽  
Aimee J. Pernsteiner ◽  
Adam Revak
Keyword(s):  
Financial Reporting ◽  
Information Quality ◽  
Accounting Information ◽  
Internal Controls ◽  
Process Standardization ◽  
Content Type ◽  
Quality Of Accounting Information ◽  
The Difference ◽  
The Impact

Purpose The purpose of this paper is to examine workarounds from the perspective of the users of the system, focusing on the outcomes of workarounds and their effect on the quality of accounting information. Design/methodology/approach Interviews were conducted with employees in the accounting functions at two international organizations using SAP for their enterprise system. Results were coded by two experienced researchers and one undergraduate student, and included a categorization of the outcomes of workarounds. Findings The most striking result is the difference in views of workarounds between the two organizations. While workarounds are discouraged by the accounting function at both organizations, one seeks out workarounds and enforces standards while the other has not yet achieved process standardization. Not surprisingly, users view the workarounds of others as very detrimental to the quality of accounting information, but view their own workarounds as critical to maintain quality. Practical implications Organizations should obtain input from system users to document the extent that workarounds are used within the organization to determine the impact on the quality of their financial reporting. Originality/value The focus on outcomes of workarounds is an important shift in the literature, and more work is needed to further refine the categories used in this research, particularly for the effect of workarounds on internal controls and information quality. Additionally, this research surfaced a very strong difference in the actions taken to deal with workarounds, which may be due to organizational cultures.

The effect of emotions, eWOM quality and online review sequence on consumer intention to follow advice obtained from digital services

2020 ◽  
Vol 31 (3) ◽  
pp. 465-487 ◽  
Author(s):  
Carla Ruiz-Mafe ◽  
Enrique Bigné-Alcañiz ◽  
Rafael Currás-Pérez
Keyword(s):  
Structural Model ◽  
Online Reviews ◽  
Moderating Effect ◽  
Online Information ◽  
Bias Effect ◽  
Content Type ◽  
Digital Services ◽  
Information Cues ◽  
Cognitive Information ◽  
The Impact

PurposeThis paper analyses the interrelationships between emotions, the cognitive information cues of online reviews and intention to follow the advice obtained from digital platforms, paying special attention to the moderating effect of the sequencing of review valence.Design/methodology/approachThe data were collected from 830 Spanish Tripadvisor users. In a two-step approach, a measurement model was estimated and a structural model analysed to test the proposed hypotheses. SmartPLS 3.0 software was used. The moderating effect of sequencing of reviews is tested.FindingsThe data analysis showed a bias effect of review sequence on the impact of online information cues and emotions on intention to follow advice obtained from Tripadvisor. When the online reviews of a restaurant begin with positive commentaries, their perceived persuasiveness is a stronger driver of the pleasure and arousal elicited by online reviews than when they begin with negative reviews. On the other hand, the perceived helpfulness of online reviews only triggers arousal when the user reads negative, followed by positive, comments. The impact of pleasure on intention to follow the advice provided in an online travel community is higher with positive-negative than with negative-positive sequences.Originality/valueWhile researchers have demonstrated the benefits of customer reviews on company sales, a largely uninvestigated issue is the interplay between emotions and cognitive information cues in the processing of online reviews. This is one of the first studies to examine the moderating effect of conflicting reviews on the impact of emotions and cognitive information cues on consumer intention to follow the advice obtained from digital services.

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