The Role of Social Media in the Capital Market: Evidence from Consumer Product Recalls

Lee, Lian Fen; Hutton, Amy P.; Shu, Susan

doi:10.2139/ssrn.2557212

Cited by 66 publications

(139 citation statements)

References 1 publication

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“…Lee, Hutton, and Shu [] explore a different aspect of social media by exploring how firms use social media to manage product recalls. Product recalls represent “crises” that affect the firms’ product market in potentially significant ways, especially if managed poorly.…”

Section: Disclosure and Social Mediamentioning

confidence: 99%

“…They use the term "direct-access information technology" (DAIT) because, unlike conventional disclosures that rely on users taking actions to access disclosures, Twitter allows companies to "push" disclosures directly to users and so directly disseminate news, as opposed to the more conventional approach of relying on users to access content that is disseminated through media outlets. Lee, Hutton, and Shu [2015] explore a different aspect of social media by exploring how firms use social media to manage product recalls. Product recalls represent "crises" that affect the firms' product market in potentially significant ways, especially if managed poorly.…”

Section: Disclosure and Social Mediamentioning

confidence: 99%

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The Evolving Disclosure Landscape: How Changes in Technology, the Media, and Capital Markets Are Affecting Disclosure

Miller

Skinner

2015

J of Accounting Research

409

138

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Recent changes in technology and the media are causing significant changes in how capital markets assimilate and respond to information. We identify important themes in the disclosure literature and use this as a framework to discuss the conference papers that appear in this volume. These papers examine how managers’ disclosure practices are being affected by changes in technology, the media, and capital markets. While this work makes important progress, we discuss how continuing technological change and the emergence of new forms of media offer further opportunities for research on the role of disclosure in capital markets.

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Section: Disclosure and Social Mediamentioning

confidence: 99%

Section: Disclosure and Social Mediamentioning

confidence: 99%

The Evolving Disclosure Landscape: How Changes in Technology, the Media, and Capital Markets Are Affecting Disclosure

Miller

Skinner

2015

J of Accounting Research

409

138

View full text Add to dashboard Cite

show abstract

“…Previous studies suggest a positive effect of social media adoption in improving customer engagement [37], constraining negative outcomes caused by product recalls [30], detecting customer complaints regarding product defects [2], increasing equity market value [42], and lowering information asymmetry [6]. Despite these advantages, some studies advise caution in how the value of social media is measured since social media per se cannot generate value without the implementation of an adequate communication strategy [25].…”

Section: Introductionmentioning

confidence: 99%

Should You Disclose a Data Breach via Social Media? Evidence from US Listed Companies

Rosati

Deeney

Cummins

et al. 2018

Proceedings of the 51st Hawaii International Conference on System Sciences

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Data breaches represent one of the main concerns for executives across all sectors. Data breaches open aperiod of crisis for the affected firm and require them to disclose complex information to a variety of stakeholders in a timely and proper manner. This paper investigates the relationship between social media disclosure of a data breach and its cost, as proxied by the response of the affected firm's stock price. Using an event study methodology on a sample of 32 data breaches from 29 US publicly-traded firms from 2011 to 2014, we find that social media disclosure exacerbates the negative stock price's response to the announcement. However, such a negative association is contingent on firm's visibility on traditional media with social media disclosure having a beneficial effect for low-visibility companies.

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“…See, for example,Blankenspoor, Miller, and White [2014],Crawford et al [2014],Giannini, Irvine, and Shu [2014],Jung et al [2014], andLee, Hutton, and Shu [2015].6 Crowdfunding is a related concept in which firm financing is solicited from a large network of people via the internet. 7 http://en.wikipedia.org/wiki/List of most popular websites…”

mentioning

confidence: 99%

The Value of Crowdsourced Earnings Forecasts

Jame

Johnston

Markov

et al. 2016

J of Accounting Research

200

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Crowdsourcing—when a task normally performed by employees is outsourced to a large network of people via an open call—is making inroads into the investment research industry. We shed light on this new phenomenon by examining the value of crowdsourced earnings forecasts. Our sample includes 51,012 forecasts provided by Estimize, an open platform that solicits and reports forecasts from over 3,000 contributors. We find that Estimize forecasts are incrementally useful in forecasting earnings and measuring the market's expectations of earnings. Our results are stronger when the number of Estimize contributors is larger, consistent with the benefits of crowdsourcing increasing with the size of the crowd. Finally, Estimize consensus revisions generate significant two‐day size‐adjusted returns. The combined evidence suggests that crowdsourced forecasts are a useful supplementary source of information in capital markets.

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The Role of Social Media in the Capital Market: Evidence from Consumer Product Recalls

Cited by 66 publications

References 1 publication

The Evolving Disclosure Landscape: How Changes in Technology, the Media, and Capital Markets Are Affecting Disclosure

The Evolving Disclosure Landscape: How Changes in Technology, the Media, and Capital Markets Are Affecting Disclosure

Should You Disclose a Data Breach via Social Media? Evidence from US Listed Companies

The Value of Crowdsourced Earnings Forecasts

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