Search results

This paper aims to investigate textual characteristics of customer reviews that motivate companies to respond (sentiment negativity and sentiment deviation) and how aspects of these company responses (response intensity, length and tailoring) affect subsequent customer review quality (comprehensiveness and readability) over time.

Leveraging a large data set from a leading app website (Shopify), the authors combine text mining, natural language processing (NLP) and big data analysis to examine the antecedents and outcomes of online company responses to reviews.

This study finds that companies are more likely to respond to reviews with more negative sentiment and higher sentiment deviation scores. Furthermore, while longer company responses improve review comprehensiveness over time, they do not have a significant influence on review readability; meanwhile, more tailored company responses improve readability but not comprehensiveness over time. In addition, the intensity (volume) of company responses does not affect subsequent review quality in either comprehensiveness or readability.

This paper expands on the understanding of online company responses within the digital marketplace – specifically, apps – and provides a new and broader perspective on the motivations and effects of online company responses to customer reviews. The study also extends beyond the short-term focus of prior works and adds to literature on long-term effects of online company responses to subsequent reviews. The findings provide valuable insights for companies (especially those with apps) to enhance their online communication strategies and customer engagement.

The objective of this paper is to review the use of the fog index in accounting research.

This paper uses a systematic literature review (SLR) methodology with a sample of 126 accounting research articles. The review applies the theoretical framework of disclosure's stewardship, valuation and accountability roles to identify the contributions and challenges of using the fog index in accounting research.

This paper shows that the primary contribution of the fog index to accounting research relates to the disclosure obfuscation hypothesis (e.g. whether management obfuscates narratives associated with earnings). It also finds that the challenge in using the fog index is in disentangling its measure of firm environmental complexity from narrative obfuscation. Regarding disclosure utility, there is limited evidence on the differential effects of complexity on investor types and whether the fog index findings are associated with narrative obfuscation or firm environmental complexity is driven by investor types.

The authors develop a research database of fog index studies categorised based on contributions to disclosure obfuscation or disclosure utility, highlighting contributions to the stewardship, valuation and accountability roles of disclosures, which researchers can use to develop future studies.

This paper contributes to accounting literature by offering the first comprehensive review on the use of the fog index in accounting research. It offers researchers a consolidated review of the study of linguistic complexity of accounting information and disclosure functions using a theoretical framework that can inform regulators, policymakers and future researchers in designing future research/policy.

The purpose of this study is to explore the effect of two types of presentation formats (textual and imagery) involving online restaurant reviews (ORRs). The study examines ORRs on the basis of review usefulness and review enjoyment; the study investigates the effects of the two presentation formats on review usefulness and review enjoyment.

Data from 1,776 reviews were collected from Yelp.com using a Web data-harvesting technique. Hypothesized relations in the model were tested by Tobit regression analysis.

Empirical results show that different formats of ORRs affect review usefulness and review enjoyment in different manners; whereas both attributes of textual format (review length and readability) affect review usefulness, both aspects of imagery format (physical environment images and food and beverage images) are positively related to review enjoyment. However, review length and food and beverage images are the most important factors affecting both review usefulness and review enjoyment. In particular, the relation between the two formats of ORRs and review usefulness is mediated by review enjoyment.

The focus of this study is the two formats of ORRs in terms of dual coding theory and the mediating role of review enjoyment. The findings help online review website organizers manage the operation of various review formats in a proper manner. Managers can effectively select those formats that would achieve the desired effect.

Unlike previous studies on the relation of attributes to online reviews, this study examines the perceptions of ORRs’ usefulness and enjoyment. In addition, this study encompasses diverse ORR factors (review length, review readability, physical environment images, food and beverage images) for a more comprehensive interpretation of ORRs.

While there has been extensive research on understanding the effects of online reviews on product sales, there is not enough investigation of the inter-relationships between online reviews, online search and product sales. The study attempts to address this gap in the context of the Indian car market.

The research uses text mining and considers six important review features volume, valence, length, deviation of valence, sentiment and readability within the heuristic and systematic model of information processing. Panel data regression is used along with mediation analysis to study the inter-relationships between features of reviews, online search and sales.

The study finds that numerical heuristic features significantly affect sales and online search, numerical systematic feature affects sales and the textual heuristic and systematic features do not affect sales or online search in the Indian car market. Further, online search mediates the association between features of reviews and sales of cars.

Although only car sales data from India is considered in this research, similar relationships between review features, online search and sales could exist for the car market of other countries as well.

This research uncovers the unique role of online search as a mediator between review features and sales, whereas prior literature has considered review features and online search as independent variables that affect sales.

This paper provides a framework of the indicators of the quality of text in online reviews and their influence on the perceived helpfulness of reviews. First, the authors assess the effects of concreteness, readability and credibility on review helpfulness. The authors then test whether these effects change, based on review valence and readers' personality traits (specifically, extraversion and neuroticism).

The authors conducted an online experiment in the context of hotel reviews and tested our model using Generalized Estimating Equations (GEE).

The authors' findings indicate that consumers consider all three quality features – concreteness, readability and credibility when evaluating negative reviews. However, they assess positive reviews based only on how credible they seem to be. Consumers with the personality traits of neuroticism and extraversion value different review characteristics and this difference is dependent on review valence.

To the authors' knowledge, this is the first study to examine the interactions between review valence and reader personality on review helpfulness. The authors' findings make important contributions to the literature on information diagnosticity and offer managerial implications related to customizing the presentation order of reviews based on their expected helpfulness for individuals with extraverted and neurotic personalities.

The importance of online reviews on online hotel booking has been widely acknowledged. However, not all online reviews affect consumers equally. Compared with common online reviews, key online reviews (KORs) have a greater influence on consumers' decisions and online hotel booking. This study takes the first step to investigate the factors affecting the identification of KORs and the role of KORs in online hotel booking.

To test the research hypotheses, this study develops a crawler to obtain 551,600 online reviews of 650 hotels in ten representative large cities in China. This study first uses a binary logistic regression to identify KORs by combining review content quality and reviewer characteristics and then uses a log-regression model to investigate the role of KORs in online hotel booking.

This study mined the factors affecting the identification of KORs by analyzing review contents and reviewer characteristics. Our results revealed that KORs play a mediating role in the effects of review content and reviewer characteristics on online hotel booking.

This study focuses on KORs, which have received limited attention in research but are important to practitioners. Specifically, this study investigates the antecedents and consequences of KORs. Our results enable hotel managers to manage online reviews effectively, particularly KORs.

The experiential nature of travel and tourism services has popularized the importance of electronic word-of-mouth (EWOM) among potential customers. EWOM has a significant influence on hotel booking intention of customers as they tend to trust EWOM more than the messages spread by marketers. Amid abundant reviews available online, it becomes difficult for travelers to identify the most significant ones. This questions the credibility of reviewers as various online businesses allow reviewers to post their feedback using nickname or email address rather than using real name, photo or other personal information. Therefore, this study aims to determine the factors leading to reviewer credibility.

The paper proposes an econometric model to determine the variables that affect the reviewer’s credibility in the hospitality and tourism sector. The proposed model uses quantifiable variables of reviewers and reviews to estimate reviewer credibility, defined in terms of proportion of number of helpful votes received by a reviewer to the number of total reviews written by him. This covers both aspects of source credibility i.e. trustworthiness and expertness. The authors have used the data set of TripAdvisor.com to validate the models.

Regression analysis significantly validated the econometric models proposed here. To check the predictive efficiency of the models, predictive modeling using five commonly used classifiers such as random forest (RF), linear discriminant analysis, k-nearest neighbor, decision tree and support vector machine is performed. RF gave the best accuracy for the overall model.

The findings of this research paper suggest various implications for hoteliers and managers to help retain credible reviewers in the online travel community. This will help them to achieve long term relationships with the clients and increase their trust in the brand.

To the best of authors’ knowledge, this study performs an econometric modeling approach to find determinants of reviewer credibility, not conducted in previous studies. Moreover, the study contracts from earlier works by considering it to be an endogenous variable, rather than an exogenous one.

This paper aims to examine the relationship between the readability of annual reports and corporate performance in Chinese listed firms.

This research examined the annual report readability factors of Chinese listed companies by using a textual analysis method using Python to extract the text from the annual reports, convert it into numerical form to facilitate statistical analysis and then merge the results with data from the Chinese stock market to explain the impact on corporate performance and predict future earnings in the Chinese financial markets from 2008 to 2021.

Study findings indicate that firms with better financial reporting readability are more profitable, incur lower agency costs and have low earnings in the Chinese stock markets when readability is low (i.e. more complexity and length of annual reports). It was also found that when a listed company has a good performance, it prefers to use a short space to explain its operating and financial status. More generally, the means of the report length are short, and accounting terms are used less frequently; in the case of a poor company, the annual report is particularly long and accounting terms are more frequently used. In the context of the COVID-19 crisis, this study served as a proxy measure of returns prior to the announcement of the COVID-19 pandemic. In addition, an instrumental variable approach is used, which helps results to remain robust and control for fixed effects and potential endogeneity problems.

Although this study’s results cannot be generalised globally because of their limited scope, they can still be generalised across non-English speaking countries. Thus, future cross-country research is encouraged to examine the textual analysis of financial reports across those countries.

This study conveys two messages to investors and policymakers within the Chinese market. First, investors ought to pay greater attention to the nonfinancial information contained in annual reports to improve the accuracy of their predictions regarding future firm performance. Second, Chinese policymakers are encouraged to instate a policy for the use of plain English in annual reports to make them more readable by international investors.

This study contributes to the paucity of research that examines English-written annual reports in non-English speaking countries by examining the readability of annual reports in the Chinese market.

The hygiene factor is always imperative when customers consider a certain restaurant, and the information contained in customer reviews can be an efficient approach to gauge a restaurant's hygiene during gaps in the official inspection. Therefore, the purpose of this study was to investigate whether information obtained from online reviews could predict the upcoming hygiene rating, specifically, evaluating the impact of both qualitative and quantitative content of reviews on the restaurant hygiene rating.

The quantitative research method with big data analytic techniques was applied in this study. In total, 127,656 pieces of data collected from 1,710 restaurants in four major cities in the USA were used in the analysis. Both quantitative factors (i.e. reviewer's numerical rating, days to review, readability, useful/funny/cool) and qualitative factors (i.e. eight emotional dimensions of textual reviews) were analyzed from the online customer reviews and considered in predicting the restaurant's hygiene rating.

Six out of eight emotional dimensions including anger, disgust, fear, sadness, surprise and trust were identified as having significant influences on the restaurant hygiene ratings. While three quantitative variables including days to review, readability and usefulness were identified with significant impacts on the dependent variable of restaurant hygiene rating.

This study opens an avenue for innovative research that establishes a connection between customers' reviews and restaurants' inspection systems. The results allow restaurants to predict an impending hygiene inspection rating upon dynamic assessment of review content and aid in adjusting hygiene measures accordingly.

Identifying and predicting the most helpful reviews has been a focal interest in the fields including information management, e-commerce and marketing, etc. Though many factors are found correlated to the helpfulness of reviews, they may suffer endogeneity problems, as normally the data is observed in the same time window. This paper aims to tackle such a problem by examining the predictive power of different factors on the future increment of review helpfulness.

Adopting a longitudinal data of 443 K empirical business reviews from Yelp.com collected at two different time points, six groups of predictors are extracted from the first snapshot of data to predict the helpfulness increment of old and recent reviews, respectively, between the two snapshots.

It is found that these factors in general are with moderate accuracy predicting the helpfulness increment. A different group of features shows quite different predictive power. The reviewer disclosure information is the most significant factor, while the review readability does not significantly improve the accuracy of prediction.

Instead of the total number of helpful votes observed in the same time window with the explanatory variables, this paper focuses on the future increment of helpful votes observed in the following time window. With such a two-wave data set, the endogeneity problem can be avoided and the explanatory factors for review helpfulness can, thus, be further tested in the prediction scenario.