PACIS 2022 Proceedings

Paper Number

1579

Abstract

Entrepreneurs are using social media to promote their companies. However, there is scant evidence on whether and how such usage impacts company growth. In this study, we combine upper echelon theory with regulatory focus theory to analyze the impact of CEOs' social media usage on venture capital funding outcomes. Utilizing data from Sina Weibo and funding data from leading financial data providers in China, we find that CEOs' social media presence has a significant negative impact on financing outcomes, which is moderated by CEOs' regulatory focus and social capital. Furthermore, we leverage the state-of-art LDA theme modeling to dig into the mechanism. We contribute to both literature and practice: 1) We contribute to social media and entrepreneurship literature by focusing the role of CEOs' social media usage in raising funds; 2) We provide managerial implications for entrepreneurs on the appropriate use of social media as an IT artifact for promotion.

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Paper Number 1579

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