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Credibility

About: Credibility is a research topic. Over the lifetime, 13730 publications have been published within this topic receiving 331944 citations. The topic is also known as: believability & plausibility.


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Reference EntryDOI
TL;DR: In this paper, the effect of sustainability disclosure regulations on firms' disclosure practices and valuations was examined, and the authors found that the increased likelihood by treated firms of voluntarily receiving assurance to enhance disclosure credibility and increased likelihood of voluntarily adopting reporting guidelines that enhance disclosure comparability.
Abstract: A key aspect of the governance process inside organizations and markets is the measurement and disclosure of important metrics and information. In this chapter, we examine the effect of sustainability disclosure regulations on firms’ disclosure practices and valuations. Specifically, we explore the implications of regulations mandating the disclosure of environmental, social, and governance (ESG) information in China, Denmark, Malaysia, and South Africa using differences-in-differences estimation with propensity score matched samples. We find that relative to propensity score matched control firms, treated firms significantly increased disclosure following the regulations. We also find increased likelihood by treated firms of voluntarily receiving assurance to enhance disclosure credibility and increased likelihood of voluntarily adopting reporting guidelines that enhance disclosure comparability. These results suggest that even in the absence of a regulation that mandates the adoption of assurance or specific guidelines, firms seek the qualitative properties of comparability and credibility. Instrumental variables analysis suggests that increases in sustainability disclosure driven by the regulation are associated with increases in firm valuations, as reflected in Tobin’s Q. Collectively, the evidence suggest that current efforts to increase transparency around organizations’ impact on society are effective at improving disclosure quantity and quality as well as corporate value.

396 citations

Journal ArticleDOI
TL;DR: In this paper, the authors argue that the customer confidence needed for long-term loyalty can be earned only by firms that establish an image of fairness, and that fairness is especially important for service firms, whose product is intangible and difficult to evaluate.
Abstract: Executive Overview As consumer skepticism grows, companies are forced to compete for credibility in the marketplace. The customer confidence needed for long-term loyalty can be earned only by firms that establish an image of fairness. Fairness is especially important for service firms, whose product is intangible and difficult to evaluate, forcing consumers to rely on trust. When consumers are vulnerable or disadvantaged, violation of justice principles can trigger perceptions of unfairness. Such perceptions produce intense reactions from customers, who are often driven to get even with the firm.

395 citations

Journal ArticleDOI
TL;DR: In this article, the interactive effects of source credibility and other variables which affect the communication process are reviewed, and the extent to which these data are ordered by cognitive response and attribution theories is examined.
Abstract: The interactive effects of source credibility and other variables which affect the communication process are reviewed, and the extent to which these data are ordered by cognitive response and attribution theories is examined. On the basis of this review (1) situations where a credible source facilities, inhibits, and has no systematic persuasive effect are identified; (2) the explanatory power of cognitive response and attribution theory is demonstrated; and (3) a common language linking these theoretical formulations is advanced, providing a framework for investigating the persuasive mass communication process.

385 citations

Journal ArticleDOI
TL;DR: Members of the Western Simulation Council heard about Keeping the Lights on and the Elevators Running (The Simulation of Electric Power Systems) at a dinner meeting in Los Gatos on November 5, 1980.
Abstract: Members of the Western Simulation Council heard about Keeping the Lights on and the Elevators Running (The Simulation of Electric Power Systems) at a dinner meeting in Los Gatos on November 5, 1980. After dinner, Dr. William G. Tuel of the IBM Scientific Center in Palo Alto described the simulation of large electric power systems. Using slides and an analog model, he explained how transient simulators predict the ability of electric generators to remain

378 citations

Journal ArticleDOI
TL;DR: In this paper, the authors present a game theoretic model of mediation drawing on the theory of "cheap talk", which highlights a contrary logic that an unbiased mediator who is simply interested in minimizing the probability of conflict will have a strong incentive to make such statements even if they are not true.
Abstract: Mediators are often thought to be more effective if they are unbiased or have no preferences over the issue in dispute. This article presents a game theoretic model of mediation drawing on the theory of “cheap talk” which highlights a contrary logic. Conflict arises in bargaining games because of uncertainty about the resolve of the parties. A mediator can reduce the likelihood of conflict by providing information on this score. For a mediator to be effective, however, the parties must believe that the mediator is telling the truth, especially if the mediator counsels one side to make a concession because their opponent has high resolve and will fight. An unbiased mediator who is simply interested in minimizing the probability of conflict will have a strong incentive to make such statements even if they are not true, hence the parties will not find the mediator credible. Only mediators who are effectively “on your side” will be believed if they counsel restraint.

378 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
20231,881
20223,791
2021775
2020830
2019822
2018735