Graduation Year

2015

Document Type

Dissertation

Degree

Ph.D.

Degree Name

Doctor of Philosophy (Ph.D.)

Department

Accountancy

Degree Granting Department

Accountancy

Major Professor

Uday S. Murthy, Ph.D.

Committee Member

Moez Limayem, Ph.D.

Committee Member

Dahlia Robinson, Ph.D.

Committee Member

Patrick Wheeler, Ph.D.

Keywords

product-channel fit, elaboration likelihood model, non-professional investor, management credibility, persuasion

Abstract

Historically, companies disseminated financial information via the press release. The ability to disseminate information now exists on multiple "new media" channels beyond just the press release, with each channel reaching a different audience. With the different channels of communication come different connotations and associations that people have about the channels, which may affect the interpretation of the message, thereby altering management's ability to effectively communicate with stakeholders. I investigate whether retail investors' processing of financial information disclosures is dependent upon the fit between the channel and the type of information sent on the channel. Using the Elaboration Likelihood Model, I experimentally test how good and bad financial information posted on a social media channel, Twitter, compares to a more traditional channel, a company investor relations page where financial information is traditionally posted. I find that Twitter is associated with investors processing financial information unconsciously on the peripheral route while conscious or central route processing is associated with information coming from the company's investor relations page. Additionally, I find that investors have lower perceptions of management credibility after viewing financial disclosures on a company's Twitter feed than after viewing the same disclosures on the company's investor relations page.

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