Understanding social media activities of firms and CEOs

This study explores the factors and motivations driving Twitter usage by firms and their CEOs, offering insights into the strategic and personal dynamics of social media adoption. Using hand-collected data from CEO and firm Twitter accounts, the findings reveal that firms adopt Twitter at a significantly higher rate and two years earlier than CEOs. Both firm and CEO Twitter usage are positively associated with size and valuation. However, CEO age and tenure are associated only with CEO Twitter activity, suggesting that CEO Twitter usage is discretionary and influenced by personal factors. Firms in environments with greater information asymmetry are less likely to use Twitter, suggesting a desire to minimize scrutiny or misinterpretation. However, CEO Twitter activity is unaffected by the firm’s information environment, emphasizing its personal nature. These findings highlight the distinct motivations for Twitter adoption by firms and CEOs, underscoring its role in modern corporate communication and leadership practices.