This paper examines the association between firm performance and social media. Based on a sample of S&P 1500 firms, the study finds that firms with a social media presence are more highly valued by the market and have higher future financial performance. Further analysis indicates that the impact of social media on firm performance varies depending on the social media platform involved. Finally, using a restricted sample of Global 100 firms, the study finds some evidence that a higher level of social media engagement is associated with higher firm performance. Overall, these findings provide consistent evidence of the positive impact of social media technologies on firm performance.

Data Availability: All data are available from public sources.

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