Firm Communication and Investor Response: A Framework and Discussion Integrating Social Media

Firm Communication and Investor Response: A Framework and Discussion Integrating Social Media

March 20,2018Working Paper No. 3667

I provide a general framework of firms’ financial communication process and investor response to information, moving from disclosure through dissemination to investor response and management response. I then discuss the entrance of social media into firm communications, highlighting both classic and unique aspects of social media in the communication process. I place Cade (2018) in this literature and discuss areas ripe for future research. Finally, I encourage researchers interested in social media to acknowledge and embrace the unique opportunities and challenges in this area.

Keywords
disclosure, social media, firm communication, investor response