Impact of Firm-generated Social Media Content on firm's Profitability

P. 109–113.

Ilya Naidanov

Social media content makes a significant impact on the financial performance of companies. This article deals with various characteristics of firm-generated social media content that affect company profitability. Previous studies use a limited set of firm-generated content metrics: only the presence of particular topic and content volume are
considered. This study extends the understanding of economic effect of firm-generated content by examining additional content characteristics, such as content type, vividness, interpost duration and time of publication. We use random effects regression to model firms’ profitability. We considered 161 Russian companies and their online publications on Russian social network Vkontakte during 2017-2021. Results demonstrate that content type, content vividness and interpost duration make no significant impact on firms’ profitability, whereas time of publication does: firms that publish content from 4am to 8am have higher profitability. These findings are useful for firms seeking to improve their content strategies in social media.

Keywords: profitability, social media, content strategy, firm-generated content

In book

GSOM Emerging Markets Conference 2022

M.: St. Petersburg State University Graduate School of Management, 2022.