Search
Program Calendar
Browse By Day
Search Tips
Virtual Exhibit Hall
Personal Schedule
Sign In
The use of social media, especially social networking web sites, by individuals and companies is increasing rapidly. Some companies may hesitate to adopt social media as disclosure platforms because the consequences to stakeholders and company reputation and image are not yet fully understood. We examine how the influence of the disclosure platform (Facebook vs. corporate web page) varies according to the valence of corporate news (positive vs. negative). We find that given negative corporate news, investors experience more negative affective judgments, and make more negative stock price change judgments, when they see the news on Facebook rather than the corporate investor relations web page. However, given positive corporate news, investors experience similar affective reactions, and make similar stock price change predictions, regardless of seeing the news on Facebook or the corporate web site. Further analysis, however, reveals that investors’ affective reactions do not mediate the influence of disclosure platform on investors’ stock price change judgments.
Maia J Farkas, California State University, San Marcos
Walied Keshk, Cal State University - Fullerton