Social Executives’ emotions and firm value: An empirical study enhanced by cognitive analytics

Qiping Wang, Raymond Yiu Keung Lau, Haoran Xie, Hongyan Liu and Xunhua Guo

Journal of Business Research, 2024, vol. 175, issue C

Abstract: Investors are increasingly relying on social media to seek insights into corporate prospects. However, it remains unclear whether social executives—those engaging with stakeholders through social media—provide valuable information that shapes investors’ investment decisions, thereby influencing firm value. Drawing on emotions as social information theory, this study explores the impact of social executives’ emotions, derived from social media posts, on firm value. Moreover, we consider variances in effects across different post types and firm sizes. Applying advanced cognitive analytics and deep learning techniques, our analysis reveals a significant association between the emotions of fear and anger expressed in posts related to firm events or routine work and firm value, with more pronounced effects observed in small firms. Additionally, our machine learning experiments demonstrate that social executives’ emotions contribute to more accurate predictions of firm value than sentiments alone. These findings have important implications for both theory and practice.

Keywords: Social Executives; Emotions; Firm Value; Cognitive Analytics; Deep Learning (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:175:y:2024:i:c:s0148296324000791

DOI: 10.1016/j.jbusres.2024.114575

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