Publication Type
Journal Article
Version
submittedVersion
Publication Date
3-2025
Abstract
Against the backdrop of an increasing threat of misinformation on social media, several countries have enacted regulations to curb the spread of misinformation. This study examines how corporate social media strategy responds to misinformation regulations. Using a large cross-country dataset of corporate tweets and a stacked regression analysis, we show that misinformation regulations lead to less corporate social media disclosure. This result suggests that by deterring misinformation, these regulations reduce firms’ need to use social media to counteract its adverse effects. Additional analyses show that the effect is more pronounced among countries with higher social media usage and countries with stronger investor protection, but weaker for firms with stronger information environments. Finally, we provide direct evidence that firms post fewer tweets refuting misinformation about themselves following the enactment of these regulations.
Keywords
Misinformation regulation, Social media, Disclosure, Twitter
Discipline
Accounting | Corporate Finance | Social Media
Research Areas
Corporate Reporting and Disclosure
Publication
Review of Accounting Studies
First Page
1
Last Page
56
ISSN
1380-6653
Publisher
Springer
Citation
CROWLEY, Richard M.; LOU, Yun; TAN, Samuel T.; and ZHANG, Liandong.
Misinformation regulations: Early evidence on corporate social media strategy. (2025). Review of Accounting Studies. 1-56.
Available at: https://ink.library.smu.edu.sg/soa_research/2072
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.
