City Research Online

Abstract

This study examines the content of corporate tweets related to earnings announcements and the incremental usefulness of YouTube and Instagram in disseminating earnings news. Textual analysis of tweets reveals that investors react more strongly to a firm’s communication on Twitter when it (i) includes financial information, (ii) mentions the CEO or the CFO, (iii) includes a visual element, and (iv) posts are written in a moderate tone. Tweets related to earnings announcements are particularly useful when retail ownership is high. Incrementally to Twitter, YouTube videos and Instagram posts do not have, on average, positive incremental effects on the price response to earnings news.

Publication Type:	Article
Additional Information:	© 2022 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited, and is not altered, transformed, or built upon in any way.
Publisher Keywords:	Social media; Twitter; YouTube; Instagram; Price reaction
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HG Finance
Departments:	Bayes Business School > Finance
SWORD Depositor:	Symplectic Administrator

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