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This study aims to investigate the impact of earnings predictability and truthfulness on nonprofessional investors’ investment willingness.

Earnings predictability is captured by quarterly earnings autocorrelation, and earnings truthfulness is indicated by real earnings management (REM). The average of investment attractiveness and willingness measures investment willingness. The authors use experiments to isolate the impact of quarterly earnings autocorrelation and REM on investors’ investment behaviors.

From the 2 × 2 design, the authors observe that investors weight more on earnings predictability than earnings truthfulness.

The generalization of the findings may be constrained for the following reasons. First, the authors use only one proxy, REM, to measure earnings truthfulness. In addition, the authors provide the participants, Amazon Mechanical Turk, with earnings predictability. Results may no longer hold if each participant has different understanding and analysis of earnings predictability.

In periods of unprecedented and severe financial uncertainty (i.e. the COVID-19 pandemic), investors rely more on earnings predictability than on earnings truthfulness. The study assists managers to strategically emphasize the predictability of earnings to attract investors, especially when firms face financial challenges or uncertainty.

This study contributes to understanding investor behavior and the critical role of earnings predictability and truthfulness in shaping investment decisions.

This paper contributes to the literature of earnings properties in financial reporting, particularly by shedding light on the nuanced interplay between earnings predictability and earnings truthfulness. The research also demonstrates that elevated earnings autocorrelation indirectly stimulates investment willingness by enhancing the investors’ perception of earnings persistence of targeted firms.

To provide human judgment input for computer algorithm development, this study examines the relative importance of source, content, and style cues in predicting the truthfulness ratings of two common types of online health information: news stories and institutional news releases.

This study employed a multi-method approach using (1) a manual content analysis of 400 randomly selected online health news stories and news releases from HealthNewsReview.org and (2) an online experiment comparing truthfulness ratings between news stories and news releases.

Using content analysis, the authors found significant differences in the importance of source, content, and style cues in predicting truthfulness ratings of news stories and news releases: source and style cues predicted truthfulness ratings better than content cues. In the experiment, source credibility was the most important predictor of truthfulness ratings, controlling for individual differences. Experts have higher ratings for news media stories than news releases and lay people have no differences in rating the two news formats.

It is important for health educators to curb consumer trust in misinformation and increase health information literacy. Rather than solely reporting scientific evidence, educators should focus on addressing cues people use to judge the truthfulness of health information.

This is the first study that directly compares human judgments of health news stories and news releases. Using both the breadth of content analysis and experimental causality testing, the authors evaluate the relative importance of source, content, and style cues in predicting truthfulness ratings.

Reputational beliefs influence online purchase intentions but are difficult to establish in settings in which counterfeit products are common, especially in emerging economies. Drawing upon signalling theory, this work decomposes reputational beliefs into: an ability belief, as represented by web site investment, and a truthfulness belief, as signalled by a statement about the existence of a physical store, and investigates their differential effects on online purchase intentions. This work aims to further investigate the moderating effects of searchers' personality type on the relationships between reputational beliefs and online purchase intentions.

Three experiments using various samples (students versus non-students) and products (cell phone versus camera) were conducted.

The results reveal that two significant market signals, web site investment and a statement about physical store existence, influence reputation beliefs, and, thus online purchase intentions. Moreover, aggressive searchers' online purchase intentions depend on their ability belief rather than their truthfulness belief, whereas non-aggressive searchers' intentions rely on their truthfulness belief rather than their ability belief.

This work provides new theoretical insights into factors influencing consumers' online purchase decision making by decomposing reputational beliefs and incorporating the moderating effect of personality type. It contributes to signaling literature by examining the effects of two market signals – web site investment and statement about the existence of a physical store – on two major components of reputational beliefs and online purchase intentions. This article is the first to empirically test the effects of reputational beliefs from the perspective of end-users in an online context.

This chapter examines the effect an informal control namely trust-in-superior and subordinates’ truthfulness in revealing their private information on budgetary slack. A laboratory experiment was conducted. A one-way analysis of variance (ANOVA) and ordinary least squares (OLS) regression were used to test the hypotheses proposed in this chapter. The independent variables were trust-in-superior and subordinates’ truthfulness in revealing their private information. The dependent variable was budgetary slack. The results indicate that trust-in-superior reduces the budgetary slack created by subordinates under private information condition. In addition, the results show that subordinates’ truthfulness in revealing their private information mediates the effect of trust-in-superior on budgetary slack.

This paper examines the effectiveness of the reliance on a leader’s reputation as an informal control tool to mitigate subordinates’ budgetary slack. In addition, it seeks to explain whether this relationship is mediated by subordinates’ truthfulness in revealing their private information.

A laboratory experiment was conducted involving 60 undergraduate business students who participated in the experiment. A 1 × 2 between-subjects design was employed for the experimental study. Each subject assumed the role of a production manager responsible for setting a budget target. The experimental task employed involved a simple decoding task adapted from Chow (1983).

The results of this study indicate that budgetary slack is lower when a leader’s reputation is favourable than when it is unfavourable. In addition, it is found that subordinates’ truthfulness in revealing private information fully mediates the relationship between a leader’s reputation and budgetary slack.

This paper extends the limited literature on the reliance of informal controls in mitigating budgetary slack by examining a leader’s reputation as an informal control. The findings of this study provide important implications for the design of effective management control systems.

As fake information has become the norm on the internet, it is important to investigate how skepticism impacts an individual’s attitude toward word-of-mouth (eWOM). This study examines eWOM skepticism via three dimensions: suspicion of motivation, suspicion of truthfulness and suspicion of identity. It investigates not only which of the three dimensions is more influential in eWOM situations but also the variations and relationships among these three. Furthermore, this study evaluates how an individual’s dispositional trust and perceptions regarding structural assurance can impact each dimension, which in turn affects the assessment of the eWOM messages’ credibility.

Using an online scenario-based survey, data were collected via Amazon Mechanical Turk from 195 participants in the U.S. PLS and cluster analysis were used to analyze the data.

The results reveal that the suspicion of identity play a major role in message credibility assessment and that people who are naturally less likely to trust others also hold higher suspicion of motivation and truthfulness. Further, structural assurance has significant negative effects on all three dimensions.

The findings highlight the importance of enhancing the protective measures on eWOM platforms and call for stricter regulations to prevent organizations from adopting deceptive eWOM propagandas.

This research contributes to the literature by exploring the impact of skepticism on eWOM message credibility assessment and helping to validate this newly created construct by considering eWOM skepticism as a formative construct.

The purpose of this paper is to explore the link between consumer psychology and puffery law in China and the USA, by reporting two empirical studies that investigated whether puff claims had different effects on Chinese and US college students in their perception of advertising truthfulness, brand attitude, and purchase intent.

The first study tested the six levels of puffery, identified by Preston, with two products, cane sugar and bottled spring water. The second study employed four products to test the interaction effects of product type and the “best” puff claim.

It was found that puffery had very limited effects on the participants' brand attitude and purchase intent, and the Chinese consistently reported higher purchase intent than the Americans.

The studies had two primary limitations. First, all the participants were college students. Future studies may want to sample the general population and further examine how factors such as age, education, social class, and product experience influence the perception of puffery. Second, to strive for cross‐cultural equivalence, the ad stimuli used consisted of very simple designs and focused solely on puff claims without much context. The findings outline a possible roadmap to regulatory harmonization based on consumer psychology, which bridges the sharp divide between the two models of puffery regulation represented by China and the USA.

Previous empirical studies on the effects of puffery were all confined to the US context. The paper is the first effort to investigate the effects of puffery in a cross‐cultural context.

This study aims to understand how fake news can cause an impact on consumer behavioral intentions in today’s era when fake news is prevalent and common. Brands have not only faced reputational losses but also got a dip in their share prices and sales, which affected their financial standing. Hence, it is significant for brands to understand the impact of fake news on behavioral intentions and to strategize to manage the impact.

This study uses several branding and marketing concepts such as brand experience, brand trust, brand credibility, consumer behavioral intentions along with variables suggested by Elaboration Likelihood Model and Heuristic Systematic Model such as personal relevance/involvement. For fake news, news truthfulness, news credibility and source credibility are used.

The results of this study shows that positive brand experience, brand trust, brand credibility help in creating positive behavioral intentions for brands. This study shows that brands focusing on providing positive brand experience have a stronger brand trust and credibility and are affected less by fake news than those brands which do not emphasize on these factors.

This paper can assist brand managers in understanding the impact fake news can have on behavioral intentions of consumers. The managers can strategize such that the fake news affects their brands the least.

The authors in this paper attempt to fill in the gap in literature, which is to study how the fake news impacts the brands considering the credibility, trust and experience they establish with their customers. The existing literature discusses the generation and dissemination of fake news on social media and its impact on political scenarios and personalities. Also, studies explain the impact of fake news on the financial position of brands, but marketing facets are not tested empirically.

The purpose of this paper is to examine how perceptions of truthfulness of television advertising and perceptions of brands vary among urban and rural children in Mainland China and also to collect information about the basis of judgment children used to determine whether commercials are true.

Descriptive statistics were compiled to give the perceptions of television advertising and brands of the overall sample, as well as the urban and rural sub‐samples. Chi‐square tests and independent sample t‐tests were conducted to examine the urban‐rural difference in perceptions of television advertising and brands. The sample was divided into two groups that were of similar size (age six to nine and age ten‐15). Chi‐square tests were conducted to examine the age difference in advertising perceptions.

The urban‐rural difference in consumer perceptions of advertising and brands indicates that children's development in consumer socialization depends on the environment. Urban respondents were more skeptical towards advertising than rural children. Urban and rural children shared two similarities: older children were less likely to perceive television commercials truthful than younger children. Younger children liked television commercials more than older children.

The three surveyed urban cities were highly advanced in terms of their economies and advertising development compared with all other Chinese cities. The seven surveyed rural counties cannot be generalized to the very poor rural provinces in China.

The study should serve as an advertising guideline for marketers and advertisers that target urban and rural children in China.

This paper offers insights for employing different advertising message strategies to disseminate market information to urban as well as rural children in China.

This paper aims to discover how consumers process an innovative set of systematically varied service trial offers and how this affects their learning and interaction as precursors to customer engagement.

The research uses experiments that manipulate pricing, type of service and delivery method. A repeated-measures design was used with a sample of 396 participants.

Free (as opposed to cost or full price) service trials were more likely to be accepted, with perceived truthfulness of the trial offer and perceived obligation mediating the relationship. Credence service trials generate higher levels of perceived obligation than experience service trial offers, while personal services are more likely to lead to trial adoption.

The research can be extended to well-recognized brands and further mixed service contexts.

Trial offers of new services are best targeted at buyers who are in the likely buyer group. The trial offer may accelerate time to purchase and relieve perceived risks. The trials of credence services need further signals of quality in the trial itself for consumers to adopt the full service. With personal service trials, skeptical consumers need assurance as to what will happen after the trial experience. Free trials may actually devalue a service, threatening engagement.

Uniquely, service trial offers are systematically manipulated using experience versus credence and personal versus impersonal trials to determine their effect on acceptance of the trial offer and the full service. Additionally, the study compares free, cost price and full price trial offers.