Stakeholder Engagement on Social Media and Firm Performance: Evidence from Multi-Platform Digital Interactions

This study examines the influence of stakeholder engagement with corporate social responsibility (CSR) disclosures on social media and corporate financial performance, grounded in legitimacy theory and stakeholder theory. Using a panel dataset of 388 firm-year observations of Indonesian listed companies over the period 2019–2022, we investigate how stakeholder interactions across four social media platforms—Facebook, Twitter, Instagram, and YouTube—relate to firm performance measured by Return on Assets (ROA) and Return on Equity (ROE). Panel data regression results reveal that stakeholder engagement on visual-based platforms plays a significant role in enhancing financial performance. In particular, Instagram likes and YouTube likes are positively associated with ROA (β = 0.0004, p < 0.05; β = 0.0002, p < 0.05), while Instagram comments, YouTube likes, and YouTube views show a significant positive relationship with ROE (β = 0.011, p < 0.01; β = 0.0006, p < 0.01; β = 0.000249, p < 0.01). In contrast, engagement metrics on Facebook and Twitter do not exhibit a statistically significant association with firm performance. These findings suggest that stakeholder engagement with CSR disclosures through high-engagement, visual-oriented social media platforms can strengthen corporate legitimacy and stakeholder relationships, ultimately contributing to improved financial outcomes. The study highlights the strategic importance of platform-specific digital communication in enhancing firm performance.