Corporate Governance and Market Performance:
the moderator effect of use Social Media
DOI:
https://doi.org/10.22561/cvr.v34i1.7320Keywords:
Corporate Governance, Market Performance, Social Media, TwitterAbstract
This study investigates the effect of corporate use of social media, Twitter, on the relationship between corporate governance and market performance. For this, a descriptive, documental and quantitative approach research was carried out. The population corresponds to the companies listed in B3 and the sample is composed on average of 193 companies/year, totaling 1,353 observations, during the years 2013 to 2019. By means of a multiple linear regression OLS with robust standard errors, the results show that the disclosure of financial information on Twitter enhances the relationship between corporate governance and market-to-book, that is, companies with good governance practices tend to encourage the use of social media, which would maximize their market performance. The sensitivity test confirms the results by demonstrating that corporate governance and the dissemination of corporate information on social media attract more investors, due to the reduction of agency problems and information asymmetry. The study contributes by showing that companies with good corporate governance practices seek to disseminate information on social media, enabling a potentially global reach at a low cost and instantly, capable of resulting in better returns, with more informed investors.
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