Customer and Employee Social Media Comments/Feedback and Stock Purchasing Decisions Enhanced by Sentiment Analysis

The U.S. Securities and Exchange Commission (SEC) warns professional investors that sentiment analysis tools may lead to impulsive investment decision-making. This warning comes despite evidence showing that aided social sentiment investment decision tools can increase accurate investment decision-making by 18%. Using Fama\u27s theory of efficient market hypothesis, the purpose of this quantitative correlational study was to examine whether customer Twitter comments and employee Glassdoor feedback sentiment predicted successful investing decisions measured by business stock prices. Two thousand records from 3 archival U.S. public NASDAQ 100 datasets from March 28, 2016, to June 15, 2016 (79 days) of 53 companies with over 100 comments were analyzed using multiple linear regression. The multiple regression analysis results indicated no significant predictability for successful investing decisions, F(10, 2993) = .295, p = .982, R2 = .001. The results indicated that the sentiment from both Twitter and Glassdoor was not necessarily an indicator for investors to make successful investment decisions for the 79 days in 2016. The knowledge about Artificial Intelligence (AI) sentiment usage may help professional investors gain profit or prevent losses. A recommendation to investors is to heed warnings from the SEC about tools for sentiment analysis investment decisions. Implications for positive social change include preventing an investor from using a risky sentiment tool for investment decision-making that may lead to losing capital

Disruptive New Firms in the Sharing Economy: A Process View of Corporate Reputations

This thesis addresses the formation of corporate reputations for digital platform-based disruptive new firms (DNFs) in the sharing economy. I provide one of the first empirical studies to examine the process by which reputations unfold over time, taken from a socially constructed view. I offer a nuanced understanding into the formation of both market and character reputations. I conduct a longitudinal qualitative analysis of a typical case of DNFs in the sharing economy, Uber Technologies Inc. The findings highlight that DNFs develop rapid market reputations and may sustain it in light of misconduct and wrongdoing. The impact of enduring misconduct, places a negative pressure on DNFs’ character reputations, however limited. I evaluate stakeholder sensemaking in two marketplaces: the marketplace of goods and services and the marketplace of ideas (Mahon & Wartick, 2003). In the former, DNFs are subject to rapid market responses by primary stakeholders, investors, who by rewarding firms on meeting economic imperatives, incite the adoption of precarious practices. In the marketplace of ideas, misconduct and wrongdoing evoke more significant tensions between economic and social values. The nature of DNFs wrongdoing often resides in a grey zone, which drives contested understandings in the marketplace of ideas. Enduring and positive market signals of DNFs’ market reputations also interfere with stakeholder sensemaking. As a result, character reputations take time to form and place limited pressure on market reputations. I also highlight that the embeddedness of a CEO-founder and the firm is a critical mechanism by which DNFs may ward off damage to character reputations

CEO Activism and Firm Outcomes: Examining the Role of CEO Political Ideology

There is a growing interest in an emerging phenomenon, CEO activism, in which a firm's CEO communicates his or her stand on social-political issues. Researchers have examined the effect of CEO activism on public opinion, customers' attitudes, purchase decisions, and employee's relationship with external stakeholders. Scholars argue that CEO activism is distinct from nonmarket strategy components--Corporate Social Responsibility (CSR) and Corporate Political Activity (CPA). Prior research does not address how CEO activism is distinct from CSR and CPA and how they relate to each other. CPA involves the firm's activities, mainly lobbying and Political Action Committee (PAC) contributions, intended to shape governmental policy favorable to the firm. I draw on upper echelons theory as well as research on CPA and CSR to examine the effect of CEO activism, as measured by the number of non-business organizations with which the CEO is affiliated, on the firm's CSR (as rated by MSCI) and CPA (dollar amount spent on lobbying and PACs) as well as the downstream effect on the firm's sales growth. I theorize an interaction effect between CEO activism and CEO's political ideology, as measured by an index of CEO's political contributions ten years prior to their tenure (liberalism index), on the firm's CSR and CPA. Further, I predict a positive association between sales growth and both CSR and CPA. I use a lagged design with CSR and CPA measured two years after CEO's appointment and sales growth, three years after the CEOs start. My sample includes CEOs of S&P's 1500 companies who were appointed in the time window 2001 to 2011. Using 3-stage least square (3SLS) estimation method, I find that the interaction effect between CEO activism and CEO political ideology to be positively related to the firm's CPA spending with a stronger association between CEO activism and firm's CPA for liberal CEOs. Contrary to my hypotheses, I find a negative relationship between CPA and sales growth. The data does not substantiate the hypothesized interaction effect on CSR. However, I do find a positive relationship between CSR and sales growth

Equity crowdfunding as an alternative source of entrepreneurial finance

Equity-based Crowdfunding (EBC) has been playing an increasingly important role in financing entrepreneurial companies (Signori & Vismara, 2018). Project founders raise funds via online platforms, such as Crowdcube, which also gives project founders direct interaction with potential investors. Through their feedback, investors provide opinions of the business idea, which may prove useful in reshaping and improving the products or services. Although current research on equity-based crowdfunding has correlated various campaign and projects’ features to success, there is a lack of convincing conceptual framework that has the potential to incorporate the interplay of the different factors in crowdfunding. In particular, the extant literature has so far attempted to explain success in terms of project characteristics, generally ignoring the characteristics of fund structure and their interrelationship with project characteristics in the success (or failure) of equity crowdfunding. This thesis is aiming to address this gap by building upon signalling theory, goal setting theory and social capital theories to develop a comprehensive conceptual framework that incorporate projects characteristics, fundraising structure and their interplay in the EBC campaign. Hypotheses are developed based on the conceptual framework. The data of the thesis were collected from the 850 projects funded between 2011 and 2019 on EBC platform, Crowdcube, in UK. The data was analysed using a quantitative method, with the dataset being analysed using an Ordinary least squares (OLS) regression and a series of robustness tests using a logistic regression to assess the reliability of my results. The result of this study found that higher firm age, more social media channels, and more management team members in project characteristics can contribute to the success of EBC campaigns, whilst lower funding target, less equity offered, and moderate investment threshold value to gain voting rights in fundraising characteristics can also contribute to the success of EBC campaigns. The results also suggest that project founders may establish a higher investment threshold value for investors to obtain voting rights if they are confident in the project's ability to create substantial cash flows or revenue in the future. Moreover, investors may waive their voting rights if project founders provide signals of higher-quality projects. More importantly, the result of this study found significant interaction effect between different factors, including firm age and social media, equity offered and social media, and equity offered and investment. The findings help to depict a complex web of interacting factors that when considered together, are contributing to the success of EBC. Through investigation of the factors of project characters and its fund structure characters in equity crowdfunding, this thesis assists project founders in setting up their crowdfunding campaign and investors screening out projects with growth potential and advances understanding of Crowdfunding, especially for equity crowdfunding

Factors Influencing Customer Satisfaction towards E-shopping in Malaysia

Online shopping or e-shopping has changed the world of business and quite a few people have decided to work with these features. What their primary concerns precisely and the responses from the globalisation are the competency of incorporation while doing their businesses. E-shopping has also increased substantially in Malaysia in recent years. The rapid increase in the e-commerce industry in Malaysia has created the demand to emphasize on how to increase customer satisfaction while operating in the e-retailing environment. It is very important that customers are satisfied with the website, or else, they would not return. Therefore, a crucial fact to look into is that companies must ensure that their customers are satisfied with their purchases that are really essential from the ecommerce’s point of view. With is in mind, this study aimed at investigating customer satisfaction towards e-shopping in Malaysia. A total of 400 questionnaires were distributed among students randomly selected from various public and private universities located within Klang valley area. Total 369 questionnaires were returned, out of which 341 questionnaires were found usable for further analysis. Finally, SEM was employed to test the hypotheses. This study found that customer satisfaction towards e-shopping in Malaysia is to a great extent influenced by ease of use, trust, design of the website, online security and e-service quality. Finally, recommendations and future study direction is provided. Keywords: E-shopping, Customer satisfaction, Trust, Online security, E-service quality, Malaysia

Corporate Social Responsibility: the institutionalization of ESG

Understanding the impact of Corporate Social Responsibility (CSR) on firm performance as it relates to industries reliant on technological innovation is a complex and perpetually evolving challenge. To thoroughly investigate this topic, this dissertation will adopt an economics-based structure to address three primary hypotheses. This structure allows for each hypothesis to essentially be a standalone empirical paper, unified by an overall analysis of the nature of impact that ESG has on firm performance. The first hypothesis explores the evolution of CSR to the modern quantified iteration of ESG has led to the institutionalization and standardization of the CSR concept. The second hypothesis fills gaps in existing literature testing the relationship between firm performance and ESG by finding that the relationship is significantly positive in long-term, strategic metrics (ROA and ROIC) and that there is no correlation in short-term metrics (ROE and ROS). Finally, the third hypothesis states that if a firm has a long-term strategic ESG plan, as proxied by the publication of CSR reports, then it is more resilience to damage from controversies. This is supported by the finding that pro-ESG firms consistently fared better than their counterparts in both financial and ESG performance, even in the event of a controversy. However, firms with consistent reporting are also held to a higher standard than their nonreporting peers, suggesting a higher risk and higher reward dynamic. These findings support the theory of good management, in that long-term strategic planning is both immediately economically beneficial and serves as a means of risk management and social impact mitigation. Overall, this contributes to the literature by fillings gaps in the nature of impact that ESG has on firm performance, particularly from a management perspective

5th International Conference on Advanced Research Methods and Analytics (CARMA 2023)

Research methods in economics and social sciences are evolving with the increasing availability of Internet and Big Data sources of information. As these sources, methods, and applications become more interdisciplinary, the 5th International Conference on Advanced Research Methods and Analytics (CARMA) is a forum for researchers and practitioners to exchange ideas and advances on how emerging research methods and sources are applied to different fields of social sciences as well as to discuss current and future challenges.Martínez Torres, MDR.; Toral Marín, S. (2023). 5th International Conference on Advanced Research Methods and Analytics (CARMA 2023). Editorial Universitat Politècnica de València. https://doi.org/10.4995/CARMA2023.2023.1700