2018
DOI: 10.1111/1475-679x.12217
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Negative News and Investor Trust: The Role of $Firm and #CEO Twitter Use

Abstract: We examine how CEOs can facilitate the development of investor trust that helps mitigate the effects of negative information. Results from an experiment show that investors trust the CEO more and are more willing to invest in the firm when the CEO communicates firm news followed by a negative earnings surprise through a personal Twitter account than when the news and surprise comes from the CEO via a website or from the firm's Investor Relations Twitter account or website. A follow-up experiment shows that rep… Show more

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Cited by 150 publications
(58 citation statements)
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References 56 publications
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“…) . ( Blankespoor et al, 2014;Lee et al, 2015 (Blankespoor et al, 2014;Debreceny et al, 2017;Elliott et al, 2018;National (Investor (Relations Institute, 2013;Prokofieva,2015 (Farrell et al, (2002) .…”
Section: ‫أثر‬mentioning
confidence: 99%
“…) . ( Blankespoor et al, 2014;Lee et al, 2015 (Blankespoor et al, 2014;Debreceny et al, 2017;Elliott et al, 2018;National (Investor (Relations Institute, 2013;Prokofieva,2015 (Farrell et al, (2002) .…”
Section: ‫أثر‬mentioning
confidence: 99%
“…Such characteristics might include pictures of managers in disclosures (Asay et al 2018b;Elliott et al 2018) and different disclosure mediums like Twitter versus conference calls (Grant et al 2018). Additionally, the hand-collected data in Chapter 5…”
Section: (193)mentioning
confidence: 99%
“…My findings suggest further investigation is warranted into disclosure attributes that affect managers' self-focus. For example, traditional press releases and Twitter announcements may or may not include managers' pictures (Asay, Libby, and Rennekamp 2018b;Elliott, Grant, and Hodge 2018), which could affect managers' self-focus. And disclosing via Twitter may result in higher self-focus than conference calls (Grant, Hodge, and Sinha 2018).…”
Section: Introductionmentioning
confidence: 99%
“…CEOs can maintain the company's favorable image in the public's mind through engaging with the media, including clarifying rumors in time, disclosing information accurately and strengthening communication with the media (Bednar, 2012;Elliott et al, 2018). Meanwhile, the exposure of negative news on a CEO could be damaging to stocks.…”
Section: Introductionmentioning
confidence: 99%