A1 Journal article (refereed)
The value-relevance of social media activity of Finnish listed companies (2022)
Rautiainen, A., & Jokinen, J. (2022). The value-relevance of social media activity of Finnish listed companies. International Journal of Accounting and Information Management, 30(2), 301-323. https://doi.org/10.1108/IJAIM-04-2021-0076
JYU authors or editors
Publication details
All authors or editors: Rautiainen, Antti; Jokinen, Jonna
Journal or series: International Journal of Accounting and Information Management
ISSN: 1834-7649
eISSN: 1758-9037
Publication year: 2022
Publication date: 25/03/2022
Volume: 30
Issue number: 2
Pages range: 301-323
Publisher: Emerald
Publication country: United Kingdom
Publication language: English
DOI: https://doi.org/10.1108/IJAIM-04-2021-0076
Publication open access: Openly available
Publication channel open access: Partially open access channel
Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/81650
Abstract
The use of social media tools by companies is common, but the links between the use of multiple social media tools by companies and stock price changes are largely unknown. Therefore, this study aims to analyze the value-relevance of social media activities on Facebook (FB), Instagram (IG), LinkedIn (LI), Twitter (TW) and YouTube (YT).
Design/methodology/approach
Stock market data and hand-picked social media data in this study were collected from Finland, a small language area with consistent International Financial Reporting Standards (IFRS) reporting practices, in the expectation of better comparability and lower noise in the data.This study uses correlation, regression and factor analyses for a sample of 105 Finnish public limited companies listed on the Nasdaq Helsinki stock exchange.
Findings
This paper finds evidence that social media activity is an important area of analysis and that the activity and popularity of a company in social media are value-relevant variables in forecasting stock prices.
Practical implications
Not all social media activities are necessarily equally important for managers and investors. Focus on visual messages in social media is recommended.
Originality/value
The findings of this study highlight the value-relevance of using multiple visual social media channels, particularly IG and YT. This paper suggests avenues for future research and for analyzing social media information.
Keywords: listed companies; market value; value creation; external communication; social media
Free keywords: social media; value-relevance; accounting; stock prices; Finland
Contributing organizations
Ministry reporting: Yes
Reporting Year: 2022
JUFO rating: 1
