Electronic Resource

Article - Linguistic Formality and Audience Engagement – Investors’ Reactions to Characteristics of Social Media Disclosures Volume 38, Issue 1 457–487

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As firms increasingly use social media to provide disclosures to investors, it is important to
understand whether the characteristics that are associated with these disclosures lead to different
reactions from investors than disclosures provided via more traditional channels. In this paper,
we use an experiment to examine whether linguistic formality in positive news disclosures, and
engagement of social media users surrounding the disclosures (e.g., “likes” and “retweets”),
affect investors’ judgments about a firm and its management. Results suggest that investors are
more sensitive to signals of audience engagement when disclosures use informal rather than
formal language. Specifically, when associated with signals of high audience engagement, the
use of informal language leads to greater willingness to invest than the use of formal language in
a disclosure. However, the use of informal language hurts willingness to invest when associated
with signals of low audience engagement. In two follow-up experiments, we investigate how
news valence and linguistic formality are expected to affect the level of audience engagement in
the first place, and we investigate whether managers strategically vary their use of linguistic
formality based on characteristics of the setting. Overall, our results provide evidence on how
firms might use social media disclosures to better connect with investors.

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Ketersediaan

Informasi Detail

Judul Seri

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No. Panggil

657.3 REN l

Penerbit

: Wiley Online Library., 2020

Deskripsi Fisik

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Bahasa

English

ISBN/ISSN

1911-3846

Klasifikasi

657.3 REN l

Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

Volume 38, Issue 1 457–487

Subjek

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Info Detail Spesifik

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Pernyataan Tanggungjawab

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Versi lain/terkait

Lampiran Berkas

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