Impression Management Strategies Used When Tweeting: An Analysis of Performance and Market Capitalisation

Abstract The use of social media provides management with a tool that can be used to manipulate users’ perceptions of a company. This article reports on a study that aimed to assess if performance and market capitalisation influence the impression management strategies employed by South African companies listed on the Johannesburg Stock Exchange (JSE) when tweeting earnings-related information. This relationship was analysed through assertive and defensive impression management strategies that were present in the earnings-related tweets posted. The study followed a quantitative research method. Content analysis was used to assess if there was a difference between the impression management strategies used depending on the performance and market capitalisation of companies. The findings indicated that there is a low adoption rate by South African companies regarding the use of Twitter. It was found that performance does not impact the self-presentational or dissemination patterns used by companies. Further, market capitalisation does appear to impact the self-presentational and dissemination patterns used. This was significant at the 10% level. The research is relevant for stakeholders who use information distributed by companies for decision-making. The JSE Listing Requirements do not include specific requirements regarding companies’ use of social media. Regulators may choose to enforce regulations regarding a company's social media communication.