Messaging without a Message: Executive Value and Social Media Activity
57 Pages Posted: 11 May 2017 Last revised: 30 Jul 2019
Date Written: May 10, 2017
We show that executives who start tweeting benefit from better career options. We motivate this finding using the well-established theory of limited attention. Consistent with this explanation, we find that content is irrelevant. Comparative statics are also consistent with our framework. In particular, the effect of Twitter is greater for executives who were largely unrecognized and who were underpaid before they started tweeting, who garner greater public attention from their social media activity, who enjoy higher professional mobility, and who operate in environments where compensation setting is less structured.
Keywords: Limited Attention, Social Media, Twitter
JEL Classification: G02, J01, J30, M51, O35
Suggested Citation: Suggested Citation