Executive Tweets

69 Pages Posted: 6 Dec 2021

See all articles by Richard M. Crowley

Richard M. Crowley

Singapore Management University - School of Accountancy

Wenli Huang

Hong Kong Polytechnic University

Hai Lu

University of Toronto - Rotman School of Management

Date Written: November 30, 2021

Abstract

We explore the tweeting behavior of S&P 1500 firms’ executives (CEOs and CFOs) and its market consequences during the period of 2011 to 2018. We document that executives tweet financial information related to their firms and time these tweets to firms’ major events, and that investors respond to executive tweets in addition to firm tweets. Using the latest machine learning techniques, we develop an innovative construct measuring the content similarity between executive tweets and firm tweets. We use this measure to disentangle whether the market reaction comes from new information or trust. We show evidence consistent with the view that investor reaction is driven by trust, as investors react more to information from executive Twitter accounts that is more content-wise similar to information already posted by firm Twitter accounts.

Keywords: Social media,executives,dissemination,Twitter,social bond

JEL Classification: G14,M12,M15,M40

Suggested Citation

Crowley, Richard M. and Huang, Wenli and Lu, Hai, Executive Tweets (November 30, 2021). Available at SSRN: https://ssrn.com/abstract=3975995 or http://dx.doi.org/10.2139/ssrn.3975995

Richard M. Crowley (Contact Author)

Singapore Management University - School of Accountancy ( 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

University of Toronto - Rotman School of Management ( email )

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

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