Title: The Effect of Social Media Use on Company Financial Performance

Author: Auliya Zulfatillah

Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

The aim of this research is to empirically prove the influence of social media use on company financial performance. Financial performance is measured based on market-based performance with a market value of equity proxy and accounting-based performance with a return on equity proxy. This research is quantitative research, the data is processed using multiple linear regression models to analyze the influence of social media use on company financial performance. There are three ways to measure social media use, first by looking at whether or not the company uses social media, secondly by looking at social media based on the type of platform used, thirdly measuring social media use by proxies for brand awareness, brand engagement and world of mouth. The results of the research conclude that the use of social media has a positive effect on the company's financial performance, differences in the social media platforms used have an effect on the company's financial performance, and world of mouth proxies in the use of social media have an effect on the company's financial performance in the short term.

Keywords: social media, company performance

Sources: http://repository.unair.ac.id/94549/