Financial Returns to Firms’ Communication Actions on Firm-Initiated Social Media: Evidence from Facebook Business Pages

Despite the increasing attention paid to the business value of social media, it is still not clear how they affect firm performance. This study theorizes and empirically examines how firms’ social media efforts — in terms of intensity, richness, and responsiveness — influence consumer behavior (engagement and attention) and firm performance. Using detailed data collected from the Facebook pages of 63 firms over the 2010-2012 period, we find that...