Social Media Reporting and Firm Value

Technologies are changing how stakeholders, and investors access and capture data. Social Media has had a dramatic impact on how firms communicate with investors and stakeholders about their financial and sustainability reporting, giving them an edge over their competitors. The aim of this paper is to investigate the relationship between social media reporting and firm value of the GCC listed firms. To answer to research questions, the researchers collected cross-sectional data from a sample of 241 firms listed in the financial stock markets of the GCC for the year 2017. Additionally, an Index was used to calculate the total level of social media disclosure. The findings show that the 84% of firms in the GCC countries use social media, while 70% of these firms use SM for reporting. The results indicate that enhanced reporting levels through various social media channels significantly influence value of firms. These results have implications for GCC listed firms as it is important to examine how they can utilize social media to enhance their reporting process.