The Business Value of Firms' Social Media Efforts: Evidence from Facebook
Article No.: 36, Pages 1 - 8
Abstract
This study theorizes and empirically examines how firms' social media efforts---in terms of intensity, richness, and responsiveness---influence consumer behavior and firm performance. Using detailed data collected from the Facebook pages of 63 firms over the 2010--2012 period, we find that the richness and responsiveness of a firm's social media efforts are significantly associated with the firm's market performance, captured by abnormal returns and Tobin's q. Interestingly, the intensity of a firm's social media efforts is not significantly associated with firm performance. We also find that not only do consumer engagement and attention directly impact firm performance, but they also mediate the relationship between a firm's social media efforts and firm performance. Unlike prior studies that examine the impact of third-party or consumer-initiated social media, such as blogs and consumer ratings, our study focuses on estimating financial returns to firms' own efforts on firm-initiated social media, thereby assessing the business value of social media directly.
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- The Business Value of Firms' Social Media Efforts: Evidence from Facebook
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Published In
August 2015
268 pages
ISBN:9781450334617
DOI:10.1145/2781562
- Conference Chairs:
- Jae Kyu Lee,
- Robert J. Kauffman,
- Zoonky Lee,
- Karl R. Lang,
- Program Chairs:
- Byungjoon Yoo,
- Ting Li
Copyright © 2015 ACM.
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- KRF: Korea Research Foundation
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Association for Computing Machinery
New York, NY, United States
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Published: 03 August 2015
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- Refereed limited
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ICEC '15
ICEC '15: The 17th International Conference on Electronic Commerce 2015
August 3 - 5, 2015
Seoul, Republic of Korea
Acceptance Rates
ICEC '15 Paper Acceptance Rate 39 of 55 submissions, 71%;
Overall Acceptance Rate 150 of 244 submissions, 61%
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