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The prevalence of online review websites and the ever-growing difficulty of judging review quality result in the increasing need for consumers to reduce cognitive costs. Thus, the purpose of this study is to find out the determinants of review helpfulness based on a comprehensive theoretical framework and empirical model.

This study applied a comprehensive framework, including both review content quality and reviewer background, to investigate the determinants of review helpfulness. It also presents empirical models to further control factors around product features.

Consumers are more likely to give helpful votes to those informative and readable reviews accompanied by extreme ratings. Reviewers who disclose information, have a high reputation and report a poor experience are always identified as helpful. Consumers also tend to signal suggestions from users with a local cultural background as subjective and useless.

This study focuses on upscale hotels in China. Information registered on TripAdvisor was used presenting a residential address not nationality. Only few controlling factors available because of the limited information are shown on online review websites.

Managers of both hotels and online review websites need to focus on reviews and/or reviewers as KOLs who attract consumers’ attention and affect their subsequent decisions. A dialogue with those KOLs can be by focusing on responding to reviews with certain characteristics. A reward system for reviews and KOLs may benefit review quality on online review websites and reduce cognition costs.

This positivistic research design, with multilevel approach, presenting a comprehensive conceptual framework and empirical model not only considering review- and reviewer-related factors but also controlled factors in product or service level (hotel-related characteristics).

Online reviews are increasingly available for a wide range of products and services. Several studies have demonstrated the benefits of the presence of customer reviews to an online retailer, but the issue of what makes online reviews helpful to a consumer in the process of making a purchase decision remains uninvestigated. The paper aims to discuss this issue.

Given the strategic potential of online reviews, this study drew on past research to develop a conceptual understanding of the components of helpfulness and to further empirically test the model using actual online review data from iPeen.com in Taiwan. A content analysis of 989 reviews across four products identified the interplay effects of review sidedness, reviewer’s expertise, and product type on the helpfulness of an online review.

For search goods, consumers consider two-sided reviews to be more helpful than one-sided reviews when the reviewers are experts in writing such articles, whereas they consider two-sided reviews to be equally helpful as one-sided reviews when the reviewers are novices. Conversely, for experience goods, consumers consider one-sided reviews to be more helpful than two-sided reviews when the reviewers are experts in writing review articles, but they consider one-sided reviews to be equally helpful as two-sided reviews when the reviewers are novices.

With an understanding of how review sidedness affects online review helpfulness, online retailers could establish the policy for promoting the helpfulness of reviews more effectively.

This research yields at least three important contributions: first, it contributes to the message sidedness literature by showing which arguments (one- or two-sided) are deemed to be helpful; second, it contributes to the online peer review literature by demonstrating the importance of considering product type and heuristic cues (i.e. the reviewer’s expertise) when explaining helpfulness; and third, the results in this research demonstrate that people are drawn to dual-processing; that is, the judgment of online review helpfulness is determined by heuristic cues (e.g. the status of the reviewer) and systematic processing (e.g. review content).

The purpose of this study was to investigate consumer preference formation in presence of reviews coming from traditional and electronic word of mouth (eWOM) under different conditions of review valence.

Scenario-based experimental design was used for this study. A total of 172 respondents were randomly assigned across four experimental scenarios and a control group. Across-groups comparisons were conducted using post hoc Dunnett’s test for checking the hypothesis.

The study revealed that negativity bias impacted consumer judgement formation to such an extent that positive valence from higher credibility source (WOM) is over-powered by negative reviews from lesser trusted source (eWOM). Further, a negative valence review from higher credibility source (WOM) may not be countered even in presence of consensus of positive valence review coming from a higher number of positive eWOM.

This study contributes to existing literature by examining consumer preference behaviour in presence of reviews coming from traditional and eWOM under different conditions of review valence. While earlier studies have examined individual role of WOM and eWOM under differing valence conditions, this paper extends literature by studying combined effect of WOM and eWOM under different review valence.

Consumers’ evaluation of online review helpfulness has been widely examined. The extant literature suggests that the attributes of review content (e.g. review length and extremity) influence review helpfulness. However, review length cannot fully reflect the richness of the review content. Anchoring on information diagnosticity and extremity bias, this study aims to explore the effect of review comprehensiveness on its helpfulness.

Field observations were obtained from 11,812 online restaurant reviews on a popular restaurant review platform. A controlled experiment was conducted to further delineate the effect of review comprehensiveness.

Review comprehensiveness moderates the effects of review length and an extremely negative review on helpfulness. It also confirms that for reviews of the same length, one covering more aspects is perceived by consumers as more helpful.

Different aspects of information in a review can efficiently assist decision-making. The results suggest that review platforms can better design their interface by providing separate areas for different product aspects. The platform can then receive more comprehensive and helpful reviews and increase the diagnosticity of these.

The study enriches the literature by introducing review comprehensiveness and examining the joint effects of review length and comprehensiveness on helpfulness. It also contributes to the literature by indicating how to reduce the effect of review extremity.

Extreme online reviews can have great impacts on consumers’ purchase decisions. The purpose of this paper is to investigate when users are more likely to provide extreme ratings. The study draws inference from attitude certainty theory and proposes that review extremity is influenced by the interaction of evaluation duration and product/service types: for hedonic products/services, shorter evaluation duration can foster attitude certainty, leading to higher review extremity; in contrast, for utilitarian products/services, longer evaluation duration can increase attitude certainty, resulting in more extreme reviews.

Three studies were conducted to test the hypotheses: Study 1 is an empirical analysis of 3,000 reviews from an online retailing website; Studies 2 and 3 are two between-subject experiments.

Results from three studies confirm the hypotheses. Study 1 provides preliminary evidence on how review extremity varies in evaluations of different durations and product/service types. Results from Studies 2 and 3 show that for hedonic products/services, the shorter the evaluation duration, the more likely users are to give extreme ratings; however, for utilitarian products/service, the longer the evaluation duration, the more likely users are to give extreme reviews; and attitude certainty plays a mediating role between evaluation duration and review extremity.

Findings from this study provide understandings on when a fast rather than a slow evaluation can lead to more extreme reviews. The results also highlight the role of users’ attitude certainty in the underlying mechanism.

In contrast to recent US studies, almost all prior UK studies have not supported the incremental information content of cash flow beyond earnings. In addition, to date no UK study has addressed the effect of earnings extremity on the incremental information content of cash flow and earnings whilst controlling for the extremity of cash flow. Therefore, and in order to assess the generality of recent US findings, the aim of this study is to examine the incremental information content of cash flow from operations and earnings and the effect of extreme earnings on the incremental information content of cash flow from operations in the UK firms.

Based on market‐based accounting research, this study uses statistical associations between accounting data (earnings and cash flow) and stock returns to assess/measure the incremental information content (value relevance) of cash flow and earnings and the effect of extreme earnings on the incremental information content of cash flow and earnings. The paper follows the recent methodology in this area that employs the level and change of cash flow and earnings as an estimation of their unexpected components and isolates the extreme cash flow and earnings apart from the moderate ones.

The results show that both earnings and cash flow from operations have incremental information content beyond each other. It is also found that extreme earnings lead to incremental information content for only moderate (not extreme) cash flow. These results are consistent with the findings of the recent US studies.

Overall, the findings of this study support the usefulness of using cash flow information, in addition to earnings in firm valuation by investors in the UK market, especially when earnings are extreme and cash flow is moderate. The accounting interpretation of these results, in terms of disclosure of earnings components, is discussed.

The study makes the following contributions to the incremental information content of cash flow and earnings literature in the UK. First, this study employs actual cash flow data derived from cash flow statements. Second, none of the prior UK studies shares the current research focus, which is to examine the effect of earnings extremity on the incremental information content of cash flow and earnings whilst controlling for the extremity of cash flow itself. Third, this study employs a large sample size for a more recent period.

This paper aims to propose a new 3D electromagnetic model to compute translational motion eddy current in the conducting plate of a novel linear permanent magnet (PM) induction heater. The movement of the plate in a DC magnetic field created by a PM inductor generates induced currents that are at the origin of a heating power by Joule effect. These topologies have strong magnetic end effects. The analytical model developed in this work takes into account the finite length extremity effects of the conducting plate and the reaction field because of induced currents.

The developed model is based on the combination of the sub-domain’s method and the image’s theory. First, the magnetic field expressions because of the PMs are obtained by solving the three-dimensional Maxwell equations by the method of separation of variables, using a magnetic scalar potential formulation and a magnetic field strength formulation. Then, the motional eddy currents are computed using the Ampere law, and the finite length extremity effects of the conducting plate are taken into account using the image’s method. To analyze the accuracy of the proposed model, the obtained results are compared to those obtained from 3D finite element model (FEM) and from experimental tests performed on a prototype.

The results show that the developed analytical model is very accurate, even for geometries where the edge effects are very strong. It allows directly taking into account the finite length extremity effects (the transverse edge effects) of the conducting plate and the reaction field because of induced currents without the need of any correction factor. The proposed model also presents an important reduction in computation time compared to 3D finite element simulation, allowing fast analysis of linear PM induction heater.

The proposed electromagnetic analytical model can be used as a quick and accurate design tool for translational motion PM induction heater devices.

A new 3D analytical electromagnetic model, to find the induced power in the conducting plate of a novel translational motion induction heater has been developed. The studied heating device has a finite length and a finite width, which create edge effects that are not easily considered in calculation. The novelty of the presented method is the accurate 3D analytical model, which allows finding the real power heating and real distribution of the induced currents in the conducting plate without the need to use correction factor. The proposed model also takes into account the reaction field because of induced currents. In addition, the developed model improves an important reduction in the computation time compared with 3D FEM simulation.

In contrast to earlier studies, the most recent studies on the incremental value relevance of earnings and cash flows from operations find that both earnings and cash flows have incremental value relevance beyond each other. An interesting question that follows is whether these findings hold after controlling the extremity of earnings and cash flows. This study, therefore, aims to examine the incremental value relevance of earnings and cash flows in the following four cases: moderate earnings and moderate cash flows, moderate earnings and extreme cash flows, extreme earnings and moderate cash flows and extreme earnings and extreme cash flows.

To evaluate the incremental value relevance (information content) of earnings and cash flows for each of the four cases mentioned above, we examine the statistical significance of the slope coefficients for regression of returns on both unexpected earnings and unexpected cash flows from operations.

The results show that (i) both moderate and extreme earnings have incremental value relevance beyond both moderate and extreme cash flows, (ii) moderate cash flows have incremental value relevance beyond both moderate and extreme earnings and (iii) extreme cash flows lack incremental value relevance beyond moderate earnings; however, they (extreme cash flows) have incremental value relevance beyond extreme earnings. These results suggest that earnings and cash flows have incremental value relevance. However, only in cases when cash flows are extreme and earnings are moderate, cash flows do not possess incremental value relevance. In further analysis, we find that the value relevance for cash flows and earnings decreases when they are extreme and transitory. Moreover, the value relevance for cash flows increases when they are moderate (not extreme) and the other competing measure (earnings) is transitory and extreme.

The results support the idea that earnings and cash flows from operations complement each other in explaining variation in returns. However, when cash flows are extreme and less informative, investors rely more on earnings in firm valuation, especially when earnings are moderate. Because earnings are unlikely to persist to be permanent across the years, these results can be interpreted as indicating that cash flows and earnings information are used jointly by investors.

In contrast to previous studies, we control for the extremity of earnings and cash flows when evaluating the incremental value relevance of earnings and cash flows from operations.

Recent studies on the securities market’s differential pricing of earnings components have shown that cash flow from operations is more highly valued than total accruals and that moderate cash flow from operations has higher valuation than extreme total accruals. An interesting question that follows is whether these findings hold regarding the differential valuations of cash flow and current accruals. This study aims to extend prior research by addressing this issue in two ways. First, the authors examine the incremental information content of cash flow from operations beyond working capital from operations. Second, the authors assess the effect of extreme working capital from operations on the incremental information content of cash flow from operations. This study aims to extend prior research by addressing this issue in two ways.

This study adopts market-based accounting research to test its hypotheses and to achieve its objectives. Specifically, this study uses statistical associations between accounting data and stock returns to examine the incremental information content (value relevance) of cash flow and working capital from operations and the effect of extreme working capital from operations on the incremental information content of cash flow.

The results show that cash flow from operations is not more highly valued than current accruals (both being valued equivalently). However, moderate cash flow from operations has higher valuation than extreme current accruals (each is valued differently). Overall, these research findings indicate that cash flow becomes more important for valuation as accruals get “extreme”.

As accruals are unlikely to persist to be permanent across the years, these results can be interpreted as indicating that cash flow and accruals information are used jointly by investors, with one being more important than the other depending on the relative “extremeness” of each. Therefore, both are of value to the investor and both should be reported.

The paper contributes to the UK research on determining the preferred level of disaggregation of earnings components, i.e. operating cash flow, current accruals and non-current accruals. This would help investors to improve their investment and credit decisions.

The purpose of this paper is to examine people’s understanding and evaluation of uncertainty intervals produced by experts as part of a quality assurance procedure of large public projects.

Three samples of educated participants (employees in a large construction company, students attending courses in project management and judgment and decision making, and judges of district and appeal courts) answered questionnaires about cost estimates of a highway construction project, presented as a probability distribution.

The studies demonstrated additivity neglect of probabilities that are graphically displayed. People’s evaluations of the accuracy of interval estimates revealed a boundary (a “cliff”) effect, with a sharp drop in accuracy ratings for outcomes above an arbitrary maximum. Several common verbal phrases (what “can” happen, is “entirely possible” and “not surprising”) which might seem to indicate expected outcomes were regularly used to describe unlikely values near or at the top of the distribution (an extremity effect).

All judgments concerned a single case and were made by participants who were not stakeholders in this specific project. Further studies should compare judgments aided by a graph with conditions where the graph is changed or absent.

Experts and project managers cannot assume that readers of cost estimates understand a well-defined uncertainty interval as intended. They should also be aware of effects created by describing uncertain estimates in words.

The studies show how inconsistencies in judgment affect the understanding and evaluation of uncertainty intervals by well-informed and educated samples tested in a maximally transparent situation. Readers of cost estimates seem to believe that precise estimates are feasible and yet that costs are usually underestimated.