Publication Type
Working Paper
Version
publishedVersion
Publication Date
12-2021
Abstract
We explore the tweeting behavior of S&P 1500 firms’ executives (CEOs and CFOs) and its market consequences during the period of 2011 to 2018. We document that executives tweet financial information related to their firms and time these tweets to firms’ major events, and that investors respond to executive tweets in addition to firm tweets. Using the latest machine learning techniques, we develop an innovative construct measuring the content similarity between executive tweets and firm tweets. We use this measure to disentangle whether the market reaction comes from new information or trust. We show evidence consistent with the view that investor reaction is driven by trust, as investors react more to information from executive Twitter accounts that is more content-wise similar to information already posted by firm Twitter accounts.
Keywords
Social media, executives, dissemination, Twitter, executive effort
Discipline
Accounting | Social Media
Research Areas
Corporate Reporting and Disclosure
First Page
1
Last Page
52
Citation
Richard M.CROWLEY; HUANG, Wenli; and LU, Hai.
Executive tweets. (2021). 1-52.
Available at: https://ink.library.smu.edu.sg/soa_research/1911
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.2139/ssrn.3975995