Does the number of social network followers relate to corporate value?

  • Patrick Mauder

Student thesis: Master's Thesis

Abstract

Little insight is provided in the academic literature as to whether or not investment in social media adds value. Social media is growing in user numbers globally with user numbers reaching billions. Firms take note of this development and seek to partake in the benefits of investing into social media. Yet what remains difficult is to quantify the financial benefits for firms from social media. Prior research found uncertainty for small and large firms on whether value is derived from the information present on social media and the access to the large number of users. Based on a sample of 74 listed Australian firms for an observation period of 30 days of June 2016, the study seeks to expand the body of literature by exploring the relationship between social media activity and corporate value.
I find that social media network follower numbers provide a link, albeit not a very strong one, between social media network activity and corporate value. The results contribute to the literature and add to the understanding for firms on the financial impact of social media network followers. Limitations and future research opportunities are discussed to further deepen the understanding and close the gap in the current knowledge.
Date of Award7 Oct 2017
Original languageEnglish
SupervisorKeith Duncan (Supervisor) & Jan Hollindale (Supervisor)

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