School of Business
How do the content, format, and tone of Twitter-based corporate disclosure vary depending on earnings performance?
Document Type
Article
Abstract
Using 86,891 tweets, from the official corporate Twitter accounts of 715 unique firms, this study examines whether and how managers strategically attract and distract investors’ attention from corporate news through Twitter. We find that firms with good earnings news use Twitter to post more earnings-related information directly, whereas firms with bad earnings news post more non-earnings-related information on Twitter. We further find that depending on earnings performance firms strategically choose the format of tweets (qualitative or quantitative) and the tone of earnings tweets (positive or negative) to attract investors’ attention to good news or distract investors’ attention from bad news. Our results are robust to difference-in-differences (DID), alternative sample periods, and different variable specifications. Our findings provide empirical evidence for investors and regulators regarding current practices in corporate information on Twitter.
Publication Title
International Journal of Accounting Information Systems
Publication Date
12-2022
Volume
47
ISSN
1467-0895
DOI
10.1016/j.accinf.2022.100574
Keywords
social media, strategic disclosure, Twitter
Repository Citation
Kim, Jongkyum; Lim, Jee Hae; and Yoon, Kyunghee, "How do the content, format, and tone of Twitter-based corporate disclosure vary depending on earnings performance?" (2022). School of Business. 178.
https://commons.clarku.edu/faculty_school_of_management/178
