In the online environment, social media metrics offer a credible basis of customer feedback in
anticipating the firm performance. This study verifies the association of social media metrics of
Face-book and Twitter to financial market performance. Data were collected from official Facebook pages and
Twitter accounts of 3 fast-food companies over the time period of 6 months. Then established multiple metrics for
respective social media platforms and develop outcomes using Vector
Autoregressive time series models to evaluate the instantaneous and
continuing relationship between social media metrics and financial market
performance of the firms in terms of unusual returns and idiosyncratic risk.
Results indicated that FB metrics are significant leading indicators of firm
equity value. However, Twitter metrics, have a weaker relationship with
firm value as compared to FB metrics. Collectively, current research
extends new visions for organizational top executives and investors
concerning organizational equity valuation and the social media power
1-Zeshan Ahmad Assistant Professor, Business Administration,Air University Multan Campus, Pakistan.2-Imran Khan Senior Lecturer, Department of Management Sciences, The Islamia University of Bahawalpur, Pakistan.3-Muhammad Abbas Associate Professor, Business Administration, Air University Multan Campus, Pakistan.
Firm Equity Value, Social Media Metrics, Facebook, Twitter, Social Media Marketing.