Abstract
We show theoretically and empirically (using a unique dataset of corporate Twitter activity) that corporate decisions to attract attention via social media increase market valuations and decrease the cost of capital. However, these benefits are not available equally to all firms. Adoption of social media for attention grabbing is more beneficial for firms that are considered acceptable by corporate social responsibility (CSR) standards. Our results reveal a mechanism through which CSR affects firm value, and highlight the bright and dark side of seeking the limelight.
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