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Are Corporate Website Environmental Disclosures Trusted? An Experimental Investigation
Charles Cho,
Concordia University
Amy Hageman, University of Central Florida
Jillian Phillips, University of Central Florida
Den Patten, Illinois State University
ABSTRACT. Organizations increasingly seek to utilize the Internet to report on their financial and non-financial information. This paper extends past research on internet reporting to investigate the nature of the information to environmental reporting on corporate websites. We conduct a three-by-two between-subjects experiment to determine whether environmental disclosure presented via a richer medium has an incrementally positive impact on firm stakeholders’ level of trust. We also investigate whether the environmental sensitivity of the firm’s operating industry affects this expected relationship. Overall, this paper contributes to the information systems literature by investigating the benefits of media-enriched features on corporate websites and their relationship to user trust. Furthermore, we extend the Internet environmental disclosure literature by using an experimental methodology to investigate whether stakeholders trust corporate website environmental disclosures.
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