Academic researchers often draw upon the work of others. Through academic publications researchers communicate their findings and results and open them to the academic world. In the academic process it is good practice to justify how you came to the conclusions of your research. You can do this by mentioning which methods you used, which data it resulted in and which literature you used to support your research.
This enables the readers to assess your research.
By referring to other publications, you show whose work you are drawing upon or discussing. If you do not include proper references in your work, you could be accused of plagiarism: passing off others' work, ideas or arguments as your own. Plagiarism is regarded as fraud and is taken very seriously in the academic world. Infringement of copyright is also a crime. Referencing properly safeguards you from getting into trouble.
In the academic world, scientific research is often reviewed by others in the field. Sometimes they map the entire field, sometimes a single publication where the reviewer discusses the academic work. Also, before a paper is admitted to a journal, it is reviewed by other academics to judge its academic credibility. This is called peer review. Through peer review you as a researcher know your work is sound and the journal upholds its reputation. For readers/researchers peer review is an indication of trustworthy literature.