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The Power of Social Media – Shareholder Activism via Twitter and a Firm’s Market Value
Journal
Die Unternehmung : Swiss journal of business research and practice
ISSN
0042-059X
Type
journal article
Date Issued
2017
Author(s)
Abstract
This paper analyzes the association of hedge fund activism via social media and a firm’s market value using Carl Icahn and Apple as an exemplary case. We apply an event study methodology for the period spanning from August 2013 to March 2015 with Apple share prices and the Dow Jones as the benchmark. An event is defined as the date whenever Carl Icahn issues a post (tweet) on his Twitter profile related to Apple. We find that some tweets lead to significant positive cumulative abnormal returns, which are robust in a number of tests. This new form of event definition contributes to prior literature that solely uses regulatory filings to define events and points towards the influence that social media may have on companies nowadays.
Language
English
Keywords
Shareholder activism
hedge funds
social media
Twitter
event study
Carl Icahn
Apple
HSG Classification
contribution to scientific community
HSG Profile Area
None
Refereed
Yes
Publisher
Nomos
Publisher place
Baden-Baden
Volume
71
Number
1
Start page
50
End page
73
Pages
24
Subject(s)
Division(s)
Eprints ID
250898