The Impact Of Enterprise Engagement In Social Media On Financial Perfromance:Moderating Role Of Media Attention

At present,the digital economy,China’s rapid economic development relying on the digital economy as a key breakthrough in achieving China’s industrial transformation and upgrading,the scientific and efficient use of the digital economy has become an important research direction to help the real economy improve its efficiency.The dynamic and public nature of the Internet and the rapid development of social media has changed the process of managing the financial performance of enterprises.In the process of fully participating in social media,enterprises are able to enhance their performance and realise the value of their business by exploring the potential functions of the social media marketing field.As microblogging serves as a gathering place for the public to browse information and publish information in contemporary society,this paper uses Sina Weibo as a representative social media and employs data mining techniques to obtain operational data on microblogging from 2007-2021 for978 A-share listed companies as the extent of corporate participation in social media.Firstly,this paper starts the research on the business value of social media,corporate performance and the relationship between the two through literature review,and clarifies the starting point of this paper: the impact of the degree of corporate participation in social media on financial performance.Secondly,based on the theories of dynamic capability theory and information asymmetry theory,the theoretical hypothesis of the impact of corporate participation in social media on corporate financial performance is proposed,and the role of online media attention in the relationship between corporate participation in social media and financial performance is analysed,revealing the relationship between corporations,social media platforms and online media in a dynamic system.Again,fixed-effects and moderating-effects models are used to empirically examine the impact of corporate involvement in social media on financial performance and the robustness of various approaches.Finally,the policy recommendations of this paper are put forward around enterprises,online media,government and platforms.The main findings are as follows:(1)Active participation of enterprises in social media platforms will promote the improvement of their financial performance.As companies become more involved in social media,financial performance significantly improves.(2)Online media attention has a negative moderating effect on the relationship between corporate engagement in social media and financial performance,and there is a substitution effect between online media attention and corporate engagement in social media.(3)There is equity heterogeneity and size heterogeneity in the contribution of social media participation to financial performance.Non-state-owned enterprises have a greater contribution to financial performance than state-owned enterprises;small and medium-sized enterprises have a greater contribution to financial performance than large-scale enterprises.