Factors impacting the credibility of website disclosures

Purpose - The purpose of this study is to examine credibility attributes in a website disclosure venue.Design methodology approach - A total of 100 MBA and Masters of accountancy students participated in an experiment to assess whether specific disclosure characteristics impact the credibility of optimistic, forward-looking voluntary disclosures. The disclosure characteristics examined include management's ability to meet the current earnings forecast and the disclosure of positive corporate governance qualities. A between-subjects 2×2 analysis of variance (ANOVA) is used to test the hypotheses.Findings - The findings indicate that disclosure of positive corporate governance qualities improves the credibility of optimistic, forward-looking voluntary disclosures. In addition, the credibility of optimistic, forward-looking voluntary disclosures is greater when management has met its current earnings forecast.Research limitations implications - Suggestions for future research include determining whether the importance of credibility attributes differ across presentation venues. For example, credibility attributes that are important in a website venue may be less important when used in conjunction with voluntary MD&A disclosures. In addition, the impact of the disclosure of corporate governance qualities on the credibility of voluntary disclosures may differ across subject groups.Originality value - The increasing use of the investor relations pages of corporate websites and the push for enhanced disclosures underscores the importance of understanding voluntary disclosures in a website venue and the related attributes that improve the credibility of these disclosures.