Publication Date

4-15-2017

Advisor(s)

Abigail Hornstein

Major

Economics (ECON)

Language

English (United States)

Abstract

Of recent, social media has become an increasingly important method of communication as an aggregator and distributor of news and information. Social media plays a corporate governance role by shaping the reputational capital of managers and directors, and by shaping shareholders’ informational environments. This research uses a unique, social media dataset created from fifteen different media organizations’ Facebook pages over the period 2011 – 2015. I provide evidence that there is a statistically significant relationship between social media and governance and that this relationship affects the financial performance of the firm. Additionally, I show these results are robust to media biases and endogeneity issues.

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