Corporate Disclosure via Social Media in the UK

Author
Ehab K. A. Mohamed, Mohamed A. K. Basuony, Sarah Elbadry
Abstract
The objective of this paper is to explore the nature and determinants of corporate disclosure via social media among the top 350 companies listed on the London Stock Exchange (FTSE 350). The paper uses the disclosure index developed by Mohamed et al. (2017) that fully capture the extent of online information disclosure via all facets of disclosure, namely companies’ websites and social media sites. OLS regression is used to test the hypotheses. The results find that the most popular usage of social networks and media by FTSE 350 are Twitter, LinkedIn, YouTube and Facebook. Furthermore, the results of this paper indicates that Twitter is the highest among all social networks and media in disclosing non-financial & financial information and annual reports followed by LinkedIn. The results reveal the underlying relations among board composition, ownership structure and control variables as the determining factors of online corporate disclosure (OCD). The results reveal that corporate disclosure via companies’ own websites are significantly influenced by board size, board independence, foreign ownership, current ratio and industry type. Meanwhile, corporate disclosure via social media is significantly associated with board size, board activism, firm size and leverage.
Keywords
Online Corporate Disclosure; Social Media; Board Composition; Ownership Structure; UK