Abstract

Social media is now deemed as the ideal relations management platform for investors and firms. Firms and chief executive officers (CEOs) are increasingly using social media to disclose information and communicate with investors. The various kinds of information that firms and CEOs disclose through social media can materially affect the capital market. Few studies had examined the effect of the CEO interview video disclosures on firm market value. In this paper, we investigate the effect of the CEO’s interview videos on social media on the firm market value using balanced panel data consisting of 1770 firm-year observations over a period of 2015-2020. Our findings provide statistically significant evidence that the CEO’s interview videos on social media platforms have a positive effect on the firm market value. We conduct a returns model and build a two-stage treatment effects model to provide additional evidence. The results are consistent with the primary model. This research is crucial to the extant literature on information disclosure and firm market value. We believe this research will fill the gap in information disclosure and social media analytics.

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