Disseminated earnings news via twitter and the timeliness of accounting earnings information

Today, social media as a multidimensional communication channel, is considered as a complete tool for dissemination news and has provided market stakeholders with access to complementary information. The purpose of this study is to investigate the relationship between disseminated earnings news on Twitter social media and the timeliness of accounting earnings information.Research

Data related to 345 companies listed in US S&P 500 (2016-2019), were collected and analyzed using Stata software. The tone analysis of the tweets is based on a specialized accounting vocabulary list.

The results showed that there is a significant relationship between the tone of disseminated earnings tweets by firms and the timeliness of the announcements of accounting earnings.

The interpretation of the results shows that the capability of social media as a news coverage channel allows companies to manage the earnings announcement timeliness by inevitably dissemination negative news on Twitter.Contribution: Thus, despite the effective role of social media as complementary awareness resources, this environment can be prone to strategic news dissemination by companies, and vigilance and caution by users of this environment should be considered.