Stakeholders versus Firm Communication in Social Media: The Case of Twitter and Corporate Social Responsibility Information

European Accounting Review, Forthcoming

70 Pages Posted: 5 Jul 2019 Last revised: 15 Dec 2019

See all articles by Pablo Gomez Carrasco

Pablo Gomez Carrasco

Universidad Autónoma de Madrid

Encarna Guillamon Saorin

Universidad Carlos III de Madrid

Beatriz Garcia Osma

Universidad Carlos III de Madrid - Department of Business Administration

Date Written: December 16, 2019

Abstract

Building on legitimacy theory and prior work on stakeholder management, we study firm Corporate Social Responsibility (CSR) communication in social media. In particular, we analyze the content of over a million microblogs on Twitter relating to CSR in the banking industry. We focus on key issues considered by banks in their CSR reports, which we classify into Core or Supplementary depending on their connection with core business activities. We find that the use of Twitter to communicate CSR information in social media suggests that significant differences exist between the information interests of companies and stakeholders. Outside stakeholders focus on Core CSR issues, whilst firm insiders are relatively more likely to communicate Supplementary CSR issues. Firm insiders’ information dissemination appears biased towards favorable information, and consistent with a legitimacy-based use of social media. Event studies conducted on dates with significant exogenous CSR news confirm the findings of ‘parallel’ talking, and no resemblance in the CSR issues communicated by firms and stakeholders in social media.

Keywords: Corporate Social Responsibility (CSR); Stakeholder Management; Social Media; Twitter; Banking Industry

JEL Classification: M14, M41

Suggested Citation

Gomez Carrasco, Pablo and Guillamon Saorin, Encarna and Garcia Osma, Beatriz, Stakeholders versus Firm Communication in Social Media: The Case of Twitter and Corporate Social Responsibility Information (December 16, 2019). European Accounting Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3414210 or http://dx.doi.org/10.2139/ssrn.3414210

Pablo Gomez Carrasco

Universidad Autónoma de Madrid ( email )

Campus Cantoblanco
C/Kelsen, 1
Madrid, Madrid 28049
Spain

Encarna Guillamon Saorin

Universidad Carlos III de Madrid ( email )

CL. de Madrid 126
Madrid, Madrid 28903
Spain

Beatriz Garcia Osma (Contact Author)

Universidad Carlos III de Madrid - Department of Business Administration ( email )

Calle Madrid 126
Getafe, Madrid, Madrid 28903
Spain

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