Twitter/X activity and financial performance: Evidence from European listed companies

Objective: The study aims to investigate the adoption level of Twitter/X for corporate communication in the European context, specifically aspects such as the creation of Twitter accounts, follower number, and tweet frequency. We expand the data analysis framework to provide a comprehensive description of the different types of businesses using Twitter. The article’s ultimate goal is to provide insight into their financial characteristics, including profitability, growth options, and leverage. Research Design & Methods: Using a large novel dataset (nearly 5.5 million tweets) from 41 European stock exchanges, we provide a comprehensive picture of the social media activity of 21 319 listed companies. We applied box plots, data visualisation, and exploratory data analysis to provide a concise visual summary of the data’s distribution to compare multiple datasets or identify any potential outliers or skewness. Findings: Our findings indicate that growth companies are more likely to use Twitter/X for corporate communications. However, the relationship between profitability and Twitter adoption is not clear. The level of Twitter/X adoption for corporate communication in companies listed in Europe is lower than in the Northern American ones. Implications & Recommendations: Companies should consider adopting social media as part of their communication strategy to enhance their financial performance. Our study contributes to the understanding of social media’s role in corporate communication and its potential impact on the financial performance of European listed firms. Contribution & Value Added: The literature review reveals that the predominant focus of Twitter research has been on samples derived from the US market, whereas studies pertaining to Europe tend to concentrate on specific markets or sectors. To our knowledge, there is no comprehensive research on listed Twitter-using firms in the EU.