The increasing use of social media by corporate chief executive officers was analyzed on a recent “MTSU On the Record” radio program.
Kelton co-authored a peer-reviewed article in the Journal of Information Systems on CEO tweets and their effect on investors. It concludes that when compared to information from the company website, investors associate information shared by CEOs via tweets with greater levels of shared goals and social trust in the executives.
The article is available to read online and download as a PDF here.
Social media’s use has prompted the Securities and Exchange Commission, the government agency that regulates the country’s economic markets, to issue guidelines to guard against potential use of social media platforms for insider trading.
“Using social media is OK as long as investors are informed (about) which social media sites a company and its executives are going to use,” Kelton said.
“As long as they provide that information, such disclosures are OK and in compliance with regulation (pertaining to) fair disclosure.”
To hear previous “MTSU On the Record” programs, visit the searchable “Audio Clips” archives at www.mtsunews.com.
For more information about the radio program, contact Logue at 615-898-5081 or WMOT-FM at 615-898-2800.