Online Information Disclosure Research Articles

Impact of online information on the pricing and profits of firms with different levels of brand reputation

A high brand reputation is usually associated with a brand premium and high profit. Does it still hold in the online market with rich information? How do the sales volume information and ratings information change the influence of the existing brand reputation? This study investigates a two-period pricing model of duopoly firms with different levels of brand reputation (high vs. low) in the presence of online information. We examine the impact of online information on firms’ optimal pricing and profits while considering the impact of brand reputation. Our analytical results find that in the presence of online information, the brand premium may be negative, and the firm with a lower brand reputation can earn higher profit under certain conditions. In addition, the profits of both firms may increase as the brand reputation gap increases, which implies a win-win situation in the brand competition. This study deepens our understanding of brand reputation in the context of online market, which is influenced by the herding effect and price effect of online information. The theoretical results provide guidelines for the design of online reputation systems, brand cooperation, and information disclosure.

Development and Validation of the Need for Privacy Scale (NFP-S)

ABSTRACT The need for privacy has been gaining importance in various disciplines and areas of communication, including computer-mediated, interpersonal, and health communication. These disciplines require reliable measurement of the need for privacy across different contexts. We propose a theoretical concept of the need for privacy as a personality trait and develop a multi-dimensional scale. In Study 1, we developed and tested the Need for Privacy Scale (NFP-S) using exploratory and confirmatory factor analysis (German internet users, n 1 = 3,278; n 2 = 1,226). The results support a second-order model with three first-order factors, i.e., informational, psychological, and physical need for privacy; social need for privacy was identified to be inherent to the three other dimensions and as such not a dimension on its own. The 12-item scale was validated with regard to loneliness, online privacy concerns, sex, online data protection and online information disclosure. In Study 2, we confirmed the factorial structure with a representative sample of N = 1,000 German internet users. We validated the scale with a self-assessment of the need for privacy, offline and online privacy concerns, online privacy literacy, social media usage, online data protection and social media self-disclosure, and sociodemographics.

Factors influencing users' online information disclosure intention and the moderating effect of cultural background and platform type

PurposeOnline platforms are providing diversified and personalized services with user information. Users should decide if they should give up parts of information for convenience, with their information being at the risk of being illegally collected, leaked, spread and misused. This study aims to explore the main factors influencing users' online information disclosure intention from the perspectives of privacy, technology acceptance and trust, and the authors extend previous research with two moderators.Design/methodology/approachBased on 48 independent empirical studies, this paper conducted a meta-analysis to synthesize existing results from collected individual studies. This meta-analysis explored the main factors influencing users' online information disclosure intention from the perspectives of privacy, technology acceptance and trust.FindingsThe meta-analysis results based on 48 independent studies revealed that perceived benefit, trust, subjective norm and perceived behavioral control have significant positive effects, while perceived privacy risk and privacy concern have significant negative effects. Moreover, cultural background and platform type moderate the relationship between antecedents and online information disclosure intention.Originality/valueThis paper explored the moderating effects of an individual factor and a platform factor on users' online information disclosure intention. The moderating effect of cultural differences is examined with Hofstede's dimensions, and the moderating role of the purpose of online information disclosure is examined with platform type. This study extends online information disclosure literature with a multi-perspective meta-analysis and provides guidelines for practitioners.

Antecedents of privacy concerns and online information disclosure: moderating role of government regulation

PurposeThis study aimed to determine the antecedents of privacy concerns and their impact on consumers' online information disclosure. It also investigated the moderating role of government regulation on the relationship between privacy concerns and online information disclosure.Design/methodology/approachWith the help of literature review and theories, a theoretical model was developed and then validated using the partial least squares structural equation modeling technique to analyze data from 309 respondents.FindingsThe study found that online users' privacy awareness, privacy experience, personality and cultural differences significantly and positively impact their privacy concerns, which in turn positively and significantly influence their online information disclosure. The study also found that government regulation has a significant impact on online information disclosure.Research limitations/implicationsThe study is cross-sectional in nature and cannot be generalized, and therefore, a longitudinal study could be conducted. Also, the study identified four antecedents of online users' privacy concerns. More antecedents and more sample data with other boundary conditions could have increased the predictive power of the model.Practical implicationsThis study will help practitioners to better understand the privacy concerns of online users, which could help them to develop better products and enhance service quality. Policymakers can develop regulations as per the online users' requirements to increase their confidence in disclosing personal information online and other online activities.Originality/valueFew studies have dealt with online users' information disclosure and their privacy concerns or the moderating role of government regulations on online information disclosure. The study is unique as its proposed model is the first that accounts for both online users' privacy concerns and government regulation and their online information disclosure.

Understanding online information disclosure: examination of data breach victimization experience effect

PurposeThe study aims to empirically understand individuals' tendency to disclose private information online following different forms of data breach (i.e. reversible and irreversible victimization).Design/methodology/approachSurvey methodology is applied to measure the perception of victims of data breaches on key indicators of information disclosure.FindingsAnalysis of responses from 309 victims of data breaches show that while victims' irreversible data breach victimization experience influences both dimensions of privacy concerns, reversible data breach victimization experiences influenced only peer privacy concerns (PPCs). Furthermore, only institutional privacy concerns impacted online disclosure and fully mediate the relationship between victimization experience and online disclosure.Research limitations/implicationsThe findings contribute to the privacy literature by expanding the dimension of victimization and considering their differential effect on privacy concerns. Additionally, the study uncovers the efficacy of privacy dimension on privacy recalibration following a data breach announcement.Practical implicationsFor practice, the results provide insights for managers on how to manage customer restitution after a data breach. Management of the process of privacy recalibration should not be homogenous but be based on degree of consequence.Social implicationsThis research provides deeper understanding of how the ascendancy of privacy breaches affect privacy management. The findings illuminate why the increasing trend in online activities is observed.Originality/valueThe study is the first to identify two dimensions of data breach victimization experience based on the breach level index (BLI). The two dimensions of victimization (i.e. reversible and irreversible privacy victimizations) were used to understand individuals' tendency to disclose private information online.

Online Information Disclosure, Social Media Strategies and Company Characteristics—The Case of Bangladesh

Purpose: This study analyzes Bangladeshi companies’ online information disclosure and social media tactics. We investigated the scope of online reporting and the characteristics of businesses related to exposing information on the internet. Our findings have witnessed the sudden rise of the internet and social media use and their succeeding influence on firms over the past decade, making this research particularly pertinent. Methodology: A disclosure index has been developed that includes various financial and non-financial disclosures, one of which is the corporate presence on online social networking platforms. This study then looks into the characteristics of companies linked to the amount of information disclosed on the internet. Findings: According to this study, an organization’s voluntary internet reporting is linked to business size, industry type and audit firm type, but not to the company age, financial performance and the proportion of independent board members in the audit committee. On the other hand, the company size and external audit firm type significantly impact the firm’s social media strategy. Research Limitations: The focus of this investigation is on a single nation; nevertheless, it would be fascinating to carry out this research in a collection of developing countries whose economic conditions are comparable to that of Bangladesh. Originality/Value: The study focuses on the online disclosures of companies listed on the DSEX in 2022 and includes information regarding their social media strategy. The findings demonstrate the potential for advancement regarding the level of disclosure companies provide over the internet. This study recommends regulatory authorities and standard setters when defining best practice online reporting standards. These recommendations are provided in the form of an extensive and comprehensive index.

Web-based financial reporting, social media and information asymmetry: the case of Saudi Arabia

Purpose This paper aims to examine the effect of Web-based financial reporting and social media platforms on the proxies of information asymmetry in the Saudi Stock Exchange. Design/methodology/approach The sample of this paper consists of 133 Saudi listed non-financial companies for the year 2019. Web-based disclosure level was measured using 25 items, and the social media platforms examined in this study are Facebook, Twitter and LinkedIn. The information asymmetry proxies are measured using the relative spread and the time-weighted average bid-ask spread. Findings The empirical results have shown that there is a negative and significant relation between Web-based financial reporting and the adoption of social media platforms and the proxies of information asymmetry. Indeed, the relative spread and the time-weighted average bid-ask spread decreased with increased Web-based reporting levels. Among three platforms (Facebook, Twitter and LinkedIn), the results show that only the use of Twitter as a channel for information disclosure has a negative and significant effect on information asymmetry proxies. Consequently, in the Saudi context, the authors demonstrate that the assumptions of the agency, stewardship and signaling theories are supported. Also, results reveal that the effect of information disclosure through websites and social media on reducing information asymmetry is stronger for large companies than small companies. Practical implications The paper provides new insights into the role played by websites and social media platforms in the reduction of the information asymmetry in the stock market. Consequently, investors and regulatory authorities in the Saudi financial market must give great importance to online information disclosure and its implications for lowering information asymmetry. This empirical study informs regulators in Saudi Arabia to conduct the better practice of Web-based and social media financial reporting and to regulate the current practice of information disclosure. Besides, the obtained results have the potential to convince firms’ managers to improve online information disclosure to benefit from the reduction in information asymmetry. Originality/value Unlike previous studies, this study investigates, simultaneously, the effect of Web-based and social media information disclosure on the proxies of information asymmetry in a developing economy. In addition, the hypotheses of this study are developed based on a set of theories (the agency, signaling and stewardship theories), to verify the applicability of these three theories in the Saudi context.

Do privacy concerns determine online information disclosure? The case of internet addiction

PurposeIt is a widely held belief that users make a rational cost-benefit decision when choosing whether to disclose information online. Yet, in the privacy context, the evidence is far from conclusive suggesting that strong and as-yet unmeasured influences on behaviour may exist. This paper aims to demonstrate one such link – the effect of internet addiction on information disclosure.Design/methodology/approachData from 216 Web users was collected regarding their perceptions on privacy and information disclosure intentions as well as avoidance behaviour, an element of internet addiction. Using a research model based on the Privacy Calculus theory, structural equation modelling was applied to quantify the determinants of online disclosure under various conditions.FindingsThe authors show that not all aspects of privacy (a multi-dimensional construct) influence information disclosure. While concerns about data collection influence self-disclosure behaviour, the level of awareness about privacy does not. They next examine the impact of internet addiction on these relationships, finding that internet addiction weakens the influence of privacy concerns to the point of non-significance.Originality/valueThe authors highlight some of the influences of self-disclosure behaviour, showing that some but not all aspects of privacy are influential. They also demonstrate that there are powerful influences on user behaviour that have not been accounted for in prior work; internet addiction is one of these factors. This provides some of the first evidence of the potentially deleterious effect of internet addiction on the privacy calculus.

Transformative or Not? How Privacy Violation Experiences Influence Online Privacy Concerns and Online Information Disclosure

Abstract Previous research has shown that people seldom experience privacy violations while using the Internet, such as unwanted and unknown sharing of personal information, credit card fraud, or identity theft. With this study, we ask whether individuals’ online privacy concerns increase and online information disclosure decreases if they experience such a worst-case scenario. Using representative data from a five-wave panel study (n = 745), we found that people who generally experience more privacy violations also have stronger privacy concerns (between-person differences). However, people who experienced more privacy violations than usual in the last 6 months were only slightly more concerned afterward and did not change their disclosure behavior afterward (within-person effects). The need for privacy moderated these processes. We untangle under which circumstances such experiences may be transformative, and discuss practical and conceptual consequences of how experiences translate into concerns, but not necessarily behaviors.

How Effective is the Online Real Estate Transaction Platform? Evidence from China

Online businesses have been surging worldwide during the past decade, especially during the recent COVID-19 epidemic. However, the market share of online real estate transactions is still limited, mainly due to the information-asymmetry problem. In this study, we manually collect data on online judicial housing auctions in China, which is currently the largest online real estate market globally, and investigate how online information disclosure helps facilitate online real estate transactions. The empirical results suggest a higher quality of online information disclosure can significantly help attract potential buyers. In particular, providing more comprehensive information such as professional appraisal reports or videos can help convert buyers’ initial interests to actual transaction participation, leading to higher success probabilities and transaction prices. Such an information effect is particularly strong when combined with offline services, or in a more mature online market, or for lower-value properties. We also provide a preliminary analysis of factors affecting online-information-disclosure quality. The findings provide evidence on the feasibility of online real estate transactions and deliver suggestions for the future development of the emerging online real estate market.

Online information disclosure in Spanish municipal-owned enterprises

PurposeThe purpose of this paper is to examine the amount of online information reported by Spanish municipal-owned enterprises (MOEs) according to the legal requirements indicated in the Spanish Law 19/2013 on Transparency and Good Governance. In addition, the authors analyze how different variables can affect the extent of online information reported by such enterprises.Design/methodology/approachTo do this, we conducted a content analysis of the web pages of Spanish MOEs located in cities with more than 100.000 habitants, as well as those cities that are provincial capitals. To find information about these enterprises, the authors accessed the General Intervention Board of the State Administration (IGAE) webpage (www.igae.pap.minhafp.gob.es/sitios/igae/es-ES/Paginas/inicio.aspx). This sample was composed of 273 enterprises majority owned and controlled by local governments.FindingsThe findings reveal that the amount of information reported by Spanish MOEs, in accordance with the legal requirements, is quite reduced. The most influential variables for explaining Spanish MOEs’ commitment to information disclosure are population size, political positioning of the local government and reputation.Originality/valueThis study seeks to contribute to the scarce literature on mandatory transparency in the public sector as well as to reinforce the degree of compliance with requirements of information disclosure.

The integration role of governmental information disclosure platform

PurposeThe purpose of this paper is to provide a feasible scheme for local governments to regulate corporate environmental data fraud and to discuss whether the influence of the construction of online information disclosure platform on the environmental behavior of enterprises is better than the offline spot check.Design/methodology/approachUnder the background of changing environmental fees into taxes in China, this paper conducts evolutionary game analysis between local governments and enterprises in view of the existing problem of environmental data fraud. Furthermore, through the introduction of government information disclosure platform, this paper discusses the impact of the integration of direct government regulation and indirect public concern regulation on the evolution of environmental behavior of both sides. Finally, the evolutionary game is simulated by adopting system dynamics to analyses the implementation effect of different cases on the game process and game equilibrium.FindingsThe results showed that the introduction of information disclosure platform mechanism can effectively suppress the fluctuations existing in the game play and stabilize the game. Moreover, it is worth noting that the regulatory effect of local governments investing part of the monitoring cost in the construction of online information platform is proved to be better than that of putting all the monitoring cost into offline investigation. While optimizing the monitoring cost allocation, the local government still needs to attach great importance to organically combine the attention of the public and media with the governmental official platform.Practical implicationsThe obtained results confirm that the proposed model can assist local government in refining the effects of their environmental regulatory decisions, especially in the case of corporate data fraud under environmental tax enforcement.Originality/valuePrevious literature only suggested that local governments should reduce the cost of supervision to change the corporate behavior to a better direction, but no further in-depth study. Thus, this study fills the gap by discussing the positive transformation effect of local government cost allocation scheme on corporate environmental behavior.

Online Repurchasing: The Role of Information Disclosure, Hope, and Goal Attainment

The emergence of online purchasing has changed the relationship between consumers and brands. Our research focuses on online information disclosure and consumer hope in an online shopping environment. Two studies are undertaken to test the theoretically derived hypotheses. Study 1 evaluates the causal relationship between information disclosure and hope via an experiment in an online shopping context. Study 2 involves an online survey to test the nomological network presented in this research. The models identify the moderating effect of consumer product knowledge on online information disclosure and consumer hope. For academics, this research advances knowledge of how consumers' confidence in sharing personal information develops hope, consequently enabling them to attain their goals and repeat their purchases. For practitioners, it offers a better understanding of how investments are successful in aiding consumers to attain their goals and generate repeat purchase intentions in an online shopping environment.

Sharing information online rationally: An observation of user privacy concerns and awareness using serious game

Recent studies have shown that excessive online information disclosure is a major reason of privacy breach. It makes it easy for social engineers to gather information about their targets. The objective of this study is to gather user privacy concerns reported in the literature and categorize them into themes, then design a serious game covering the categorized privacy concerns and evaluate the educational effect of the game regarding dangers associated with excessive online information disclosure. We have conducted a literature review and extracted user privacy concerns reported in 109+ publications. Then we designed a serious game and empirically evaluated the game players awareness of dangers associated with excessive online information disclosure. We find that privacy awareness has a positive long-term impact on users online behavior in terms of controlled information sharing. However, social networking needs drive users to share information online, even knowing the potential risks. The proposed serious game shows positive effect in improving the privacy awareness of participants.

Online Privacy and Information Disclosure by Consumers

I study the welfare and price implications of consumer privacy. A consumer discloses information to a multiproduct seller, which learns about his preferences, sets prices, and makes product recommendations. Although the consumer benefits from accurate recommendations, the seller may use the information to price discriminate. I show that the seller prefers to commit to not use information for pricing in order to encourage information disclosure. However, this commitment hurts the consumer, who could be better off by precommitting to withhold some information. In contrast to single-product models, total surplus may be lower if the seller can base prices on information. (JEL D11, D83, L81, M31)

Online Privacy and Information Disclosure by Consumers

I study the welfare and price implications of consumer privacy. A consumer discloses information to a multi-product seller, which learns about his preferences, sets prices, and makes product recommendations. Although the consumer benefits from accurate recommendations, the seller may use the information to price discriminate. I show that the seller prefers to commit to not use information for pricing in order to encourage information disclosure. However, this commitment hurts the consumer, who could be better off by precommitting to withhold some information. In contrast to single-product models, total surplus may be lower if the seller can base prices on information.

How Much to Share with Third Parties? User Privacy Concerns and Website Dilemmas

Publishers websites are increasingly presenting content and services that are not created and managed by the website administrators themselves, but are provided by other third parties. While third party content and services provide value and utility to website users, this comes at the cost of user information being shared with the third party. Privacy concerns surrounding information leakage have been growing rapidly. With increasing concerns regarding online privacy and information disclosure, it is important to understand the factors that affect the level of sharing between publisher websites and third parties. In this study, we propose a two-sided economic model that captures the interaction between the users, publisher websites, and third parties. Specifically, we focus on the effect of privacy concerns on the sharing behavior of the publisher website and the impact of users’ privacy concerns on third party market concentration. We then analyze welfare aspects to provide insights on the impacts of industry regulations and policy on users, publisher websites, and third parties. We partially validate the model using an exploratory empirical analysis of publisher website third party sharing behavior and the structure of the industry. To the best of our knowledge, this study is among the first to analyze publisher website decision making in sharing user information with third parties.

Dissemination of corporate information via social media and networks in Africa

This paper reports on the extent of online corporate disclosure (OCD) practices among 315 companies listed in 12 African stock markets. The paper examines the impact of board composition and ownership structure on the level of online information dissemination by top African corporations. The paper uses a disclosure index comprising of a comprehensive set of items that fully capture the extent of online information disclosure via all facets of disclosure, namely companies websites, social networks and media sites. Ordinary least squares is used to test the hypotheses. The results reveal the underlying relations among board composition, ownership structure and control variables as the determining factors of OCD. Moreover, Facebook is the dominant platform used for corporate disclosure closely followed by twitter. Although non-financial disclosure via social networks is adopted by most of the companies in the African countries, financial disclosure is adopted by only South Africa and Tunisia.

Mandatory versus voluntary disclosures

The aim of this paper is to develop the findings of previous research on policies regarding online proactive information disclosure, both voluntary and mandatory. We present and analyze new evidence on the factors that influence decisions taken in this respect. This study is focused on Central America, a region that has received little previous research attention on these issues. To achieve the study goals, we analyze the online information disclosure made by local authorities, regarding both the degree of compliance with legal requirements and the volume of information provided voluntarily. Finally, with respect to the same two types of information provision, we determine the influence of environmental factors on online information disclosure. The results obtained show that transparency is more an issue of attitude than of laws, and highlight the existence of a large gap between legal requirements and actual performance.

Measuring individuals’ concerns over collective privacy on social networking sites

With the rise of social networking sites (SNSs), individuals not only disclose personal information but also share private information concerning others online. While shared information is co-constructed by self and others, personal and collective privacy boundaries become blurred. Thus there is an increasing concern over information privacy beyond the individual perspective. However, limited research has empirically examined if individuals are concerned about privacy loss not only of their own but their social ties’; nor is there an established instrument for measuring the collective aspect of individuals’ privacy concerns. In order to address this gap in existing literature, we propose a conceptual framework of individuals’ collective privacy concerns in the context of SNSs. Drawing on the Communication Privacy Management (CPM) theory (Petronio, 2002), we suggest three dimensions of collective privacy concerns, namely, collective information access, control and diffusion. This is followed by the development and empirical validation of a preliminary scale of SNS collective privacy concerns (SNSCPC). Structural model analyses confirm the three-dimensional conceptualization of SNSCPC and reveal antecedents of SNS users’ concerns over violations of the collective privacy boundaries. This paper serves as a starting point for theorizing privacy as a collective notion and for understanding online information disclosure as a result of social interaction and group influence.