Discretionary Dissemination on Twitter

74 Pages Posted: 1 Feb 2018 Last revised: 13 Dec 2018

See all articles by Richard M. Crowley

Richard M. Crowley

Singapore Management University

Wenli Huang

Hong Kong Polytechnic University

Hai Lu

University of Toronto - Rotman School of Management

Date Written: December 6, 2018

Abstract

Using a machine learning approach to analyze 12.8 million tweets posted by S&P 1500 firms from 2012 to 2016, we find that firms time financial tweets around earnings announcements, accounting filings as well as other important corporate events, and are more likely to use media (images or video) and links in those tweets. The above pattern holds for both good and bad news. Moreover, we find that feedback from Twitter users encourages future financial tweets and use of media and links. These results collectively suggest that firms make discretionary choices in timing and presentation format when disseminating information on social media and that they incorporate instantaneous feedback from Twitter users into their dissemination strategies.

Keywords: Social Media, Discretionary Dissemination, Disclosures, Twitter, Feedback

JEL Classification: G14, L30, M14, M15, M40

Suggested Citation

Crowley, Richard M. and Huang, Wenli and Lu, Hai, Discretionary Dissemination on Twitter (December 6, 2018). Rotman School of Management Working Paper No. 3105847. Available at SSRN: https://ssrn.com/abstract=3105847 or http://dx.doi.org/10.2139/ssrn.3105847

Richard M. Crowley

Singapore Management University ( email )

60 Stamford Road
Singapore 178900
Singapore

HOME PAGE: http://rmc.link

Wenli Huang

Hong Kong Polytechnic University ( email )

School of Accounting and Finance
Hung Hom, Kow Loon, Hong Kong
Hong Kong

Hai Lu (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

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