Use of social media by the CEO and value relevance
DOI:
https://doi.org/10.11606/issn.1982-6486.rco.2024.224767Keywords:
CEO, Social media, LinkedIn, Value relevanceAbstract
The study addresses the role of CEOs as the leading corporate communicator and symbol of the company's identity, and how spreading their opinions through social media can affect the company. This research aimed to analyze the effect of CEOs' posts on LinkedIn social media, related to the companies where they work, on value relevance. The population consists of companies that make up the IBrX100. We analyzed annual data through OLS regressions with robust standard errors. The period of analysis addressed the time the last CEO of each company was in office. The results show that the CEO's use of social media contributes to the relevance of accounting information. Additionally, the sensitivity test showed that the greater the number of posts, likes, and comments, the greater the effect on market-to-book, suggesting that the interaction between the CEO and the market through LinkedIn improves the relevance of accounting information. The contribution of this study consists of empirical evidence that the CEO's communication on LinkedIn, checked through posts related to the firm, favors engagement with its stakeholders, observed through likes and comments, which may reflect on the company’s value relevance to the market, and therefore affect the quality of accounting information.
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Copyright (c) 2024 Roberto Carlos Klann, Mikaéli da Silva Giordani
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