In recent years social media has become one of the most important marketing channels for companies, attracting significant attention of consumers, marketers and thus researchers. Previous research main-ly focused on exploring the short-term effect of social media on shareholder value and the customer decision journey. This study tries to provide a holistic, short- and long-term view on how social media can create business value through its direct influence on brand equity as well as firm risk. We further-more investigate how distinct types of social media activity affects retail and professional investors differently. This study is based on a unique dataset consisting of daily social media data from four social media platforms, brand equity, stock price and credit risk data of 38 companies for 6 years. We investigate the dynamic relationship between the variables leveraging vector autoregression models. Preliminary results support our hypotheses that social media activity can create brand equity and reduce firm risk as measured in credit risk and idiosyncratic risk.