Social Media for the Benefit of Companies, Investors and Stock Price Informativeness
Nowadays social networks play a crucial rule in a company’s relationship with investors, requiring a stronger emphasis and more effort on the development of social media channels. We discuss a definition, classification and comparison for social media types. Then we consider the importance of social media for a company and investors, and provide evidence that social media use by firm can improve its stock price informativeness. A unique dataset was collected for an international analysis. Finally, an implementation plan is suggested for firms to maintain and manage social media.