The Role of Emotions in Firms' Communications of Social Activities Under a Crisis and Stakeholder Response: An Examination During the COVID ‐19 Pandemic

ABSTRACT This study investigates the role of emotions in the effectiveness of firm‐stakeholder communications during a crisis. Under the backdrop of the COVID‐19 crisis and the increase in firms' social activities, this study examines how emotional components in firms' communications of their social activities are received by stakeholders. Building on the insights from work in firm‐stakeholder communication and crisis management, we start from the basis that a firm's communication of social activities will be received favorably by stakeholders through trust‐building mechanisms. Further, drawing on emotion regulation theory, we develop a framework that communications requiring less emotional processing will be more effective during a crisis as stakeholders' emotional capability is depleted. Using dictionary‐based text mining and manual investigations of 225,843 tweets (Twitter rebranded as X) generated by firms during 2019 to 2021, we find support for our arguments. Theoretical contributions and managerial and policy implications are discussed.