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An organization can have a high number of "likes" on its Facebook
page and lots of "followers" on its Twitter account, but does that
mean anything from a financial perspective? Is it worth the
organization's effort to maintain an active presence on social
media in order to generate more revenue? Is it possible to use
social media metrics such as the number of "likes" and the number
of "followers" to predict an organization's "success" even though
those metrics are nonfinancial indicators? Prior research studies
have looked at how organizations should utilize social media, but
few studies have provided strong empirical evidence to support how
the outcome of using social media should be measured and why.
Focusing on Facebook, Twitter, Google+, and YouTube, this book
examines how Fortune 500 companies use social media. Collected over
a five-year period, the authors assess the companies' social media
activities and their business performance data, such as stock
return, total revenue, net income, and earnings per share. These
data, both financial and nonfinancial, are matched and
statistically analyzed to see whether a company's social media
activities are significantly associated with its business
performance.
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