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Strategic implications of corporate disclosure via Twitter

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  • Kale, Devendra
  • Nanda, Vikram
  • Rupp, Anin

Abstract

We investigate the information and strategic aspects of corporate tweets. Despite limits on message length, tweets stimulate information acquisition by investors, as indicated by post-tweet downloads from the SEC-EDGAR website. Corporations appear to be effective at leveraging tweets to enhance their information environment. Specifically, tweets are associated with reduction in firms’ earnings surprise and stock return volatility. There is a decrease in negative skewness of stock returns, suggesting a more uniform release of favorable and unfavorable news, especially in high litigation industries. These effects are more evident when the CEO has greater equity incentives and when firms are smaller and less visible.

Suggested Citation

  • Kale, Devendra & Nanda, Vikram & Rupp, Anin, 2025. "Strategic implications of corporate disclosure via Twitter," Journal of Empirical Finance, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:empfin:v:83:y:2025:i:c:s092753982500057x
    DOI: 10.1016/j.jempfin.2025.101635
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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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