Theoretical background
Numerous management scholars have examined how the characteristics of top executives influence firm performance. To consolidate previously fragmented research, Hambrick and Mason (1984) introduced a general “upper-level perspective” and developed a corresponding model. Specifically, upper echelons theory posits that “organizational outcomes—strategic choices and performance levels—are partially predicted by managerial background characteristics” (Hambrick and Mason, 1984, p. 193). This theory has been widely applied to explain how CEO traits influence a range of organizational outcomes. For example, scholars drawing on this framework have displayn that CEO attributes are positively associated with firm performance, particularly in areas such as capital investment decisions (Liu et al. 2018; Ali et al. 2022). In sum, a CEO’s characteristics shape strategic goals and decision-creating processes, which are especially consequential for ventures seeking external financing.
Upper echelons theory provides a relevant lens through which to explore the present study’s research question: how does CEO’s social media usage influence corporate financing performance? Within the theoretical framework, the CEO, as a central member of the top management team, plays a decisive role in formulating and implementing the firm’s strategy through individual cognitive styles and behavioral patterns. CEOs’ social media activities, representing an extension of their personal and professional identity, increasingly form a critical component of the firm’s broader communication strategy. Given the public and interactive nature of social media platforms, CEOs’ online presence can quickly disseminate to diverse audiences, shaping initial perceptions of the firm’s governance quality, transparency, and innovative posture.
Whether sharing professional insights or aspects of their personal lives, CEOs communicate signals that can influence how investors and other stakeholders interpret the firm’s leadership style and strategic direction. These interpretations, in turn, may predict perceptions of corporate reputation and investor relations. Owing to the immediacy and broad reach of digital platforms, these impressions can rapidly shape market sentiment. Accordingly, understanding the relationship between CEO’s social media behavior and financing performance constitutes a meaningful academic inquiry. Social media usage may influence financing cost, access to capital, and the structure of funding by shaping investor risk perceptions, trust, and expectations. However, the precise mechanisms by which this occurs remain underexplored and require empirical validation. From a theoretical standpoint, upper echelons theory offers a plausible foundation for predicting an association between CEO’s social media behavior and financing outcomes, as it links top executives’ observable characteristics to organizational decision-creating and performance.
This study employs social media usage as a proxy for CEO attributes. Social media, recognized as both an information technology (IT) tool and a strategic communication mechanism, plays a prominent role in contemporary business strategy and marketing (Jaman et al. 2020). It facilitates two-way communication with customers and supports the development of personalized messaging and brand-building initiatives (Infante and Mardikaningsih, 2022; Abell and Biswas, 2023). Social media thus represents one of the most transformative IT developments impacting organizations across internal and external boundaries. Moreover, researchers have demonstrated that text data extracted from social media can effectively reflect individual personality traits (Wang and Chen, 2020; Farnadi et al. 2016). For instance, Azucar et al. (2018) display that lexicon-based approaches can accurately infer personality profiles, while Adamopoulos et al. (2018) demonstrate that unstructured social media data can be processed utilizing data mining algorithms to capture individual characteristics.
Hypotheses development
CEO’s social media usage and corporate financing performance
Field theory conceptualizes society as a complex structure composed of distinct fields—social arenas governed by their own logic, norms, and power dynamics (Bourdieu, 1991). Each human action is shaped by the field in which it occurs, which extfinishs beyond physical environments to include the behaviors of others and the broader sociocultural context. Field theory has increasingly been adopted as an analytical framework to explain individual and organizational behaviors on social media platforms (Shang et al. 2017; Joshi et al. 2023).
In the present context, CEOs’ presence on social media constitutes a field involving multiple participants—such as firms, investors, and platforms—interacting within a network of overlapping social dynamics. According to Bourdieu’s framework, the relationship between CEO’s social media usage and corporate financing performance is shaped by the tensions that arise between the norms of the social media field and those of the financial and corporate fields. The essence of the social media field is the attention economy, the rules of which are shaped by platform algorithms, utilizer behavior, and cultural trfinishs. Take Sina Weibo as an example, its content ecology is oriented to “pan-entertainment” – utilizers prefer fragmented and emotional expression, and the platform algorithm gives priority to recommfinishing highly interactive content (e.g., celebrity gossip, hot stories), forming an informal, entertainment-oriented field logic. In contrast, commercial and financial fields follow the logic of capital appreciation, relying on professional symbols (e.g., financial statements, compliance disclosures) and institutional trust (e.g., audit reports, institutional ratings), emphasizing information rigor and risk aversion. When a CEO’s online behavior deviates from these norms—for example, by appearing overly casual or self-promotional—it may undermine the perception of managerial credibility and weaken trust in the firm’s governance.
This potential misalignment may negatively influence investor perceptions and increase the perceived risk associated with financing the firm. For instance, research suggests that individuals who frequently post personal photos on social media are often perceived as high in neuroticism (Pflügner et al. 2021), a trait not typically associated with executive leadership. Such cues may distort the firm’s image in the eyes of capital market participants.
Moreover, the symbolic capital that CEOs accumulate on social media—such as visibility, popularity, and social influence—must be transformed into economic capital, such as improved financing outcomes. Field theory emphasizes that this capital transformation is not automatic but context-depfinishent. In business and financial fields, economic capital and professional achievements are prioritized over social visibility. When symbolic capital is misaligned with these values, the transformation process may be disrupted, resulting in unintfinished negative effects.
Additionally, fields differ in their behavioral and cultural expectations. CEO’s social media expressions that are incongruent with corporate culture or indusattempt norms may sfinish amhugeuous or conflicting signals to the market. This inconsistency may diminish investor confidence in the firm’s strategic direction, thereby increasing information asymmeattempt and financing costs.
Based on these arguments, the study proposes the following hypothesis:
Hypothesis 1: CEO’s social media usage has a negative influence on corporate financing performance.
The moderating role of CEOs’ regulatory focus
Regulatory focus theory posits that individuals’ goal-directed behaviors are guided by two distinct motivational systems: (a) a promotion focus, which is oriented toward achieving gains and advancement, and (b) a prevention focus, which centers on maintaining the status quo and avoiding losses (Higgins, 1998). Specifically, individuals with a high promotion focus are motivated by aspirations for growth and success, whereas those with a high prevention focus are motivated by safety, responsibility, and the desire to avoid negative outcomes.
Prior studies confirm that promotion and prevention foci function as indepfinishent regulatory systems rather than two poles of a single continuum. These differences in regulatory focus lead to distinct behavioral patterns and performance outcomes. For example, promotion-focutilized job crafting has been displayn to enhance employee performance, while prevention-focutilized job crafting is often negatively associated with outcomes (Lichtenthaler and Fischbach, 2019). In the context of executive decision-creating, research has demonstrated that CEOs’ regulatory focus influences corporate outcomes such as innovation strategy (Glaveli et al. 2023), cross-border acquisitions (Gada et al. 2024), and international expansion (Biru et al. 2023). Moreover, the effects of regulatory focus on managerial decision-creating are highly context-depfinishent (Hoskisson et al. 2023).
Regulatory focus theory, therefore, provides a valuable lens through which to analyze how CEO regulatory focus moderates the relationship between social media usage and financing performance. CEOs with a prevention focus are more likely to adopt cautious communication strategies, emphasizing risk mitigation and status preservation. As a result, they may be reluctant to utilize social media proactively or may limit their engagement to risk-averse content. In contrast, promotion-focutilized CEOs tfinish to view social media as a strategic tool to highlight corporate achievements, articulate visions for growth, and build a forward-seeing brand narrative.
By sharing success stories, business milestones, and innovation efforts, promotion-focutilized CEOs can reduce uncertainty, foster investor confidence, and positively shape market perceptions. In addition, their greater transparency and openness in communication may reduce information asymmeattempt and lower perceived investment risk, ultimately leading to lower financing costs. Positive engagement through social media may also strengthen brand identity and stakeholder trust.
Building on theoretical foundations and empirical research (Gamache et al. 2015), this study identifies CEO regulatory focus based on the frequency and content of social media posts. CEOs with a promotion focus are expected to post more frequently and with a greater emphasis on business-related content, while prevention-focutilized CEOs are expected to post less frequently and with less strategic relevance. Therefore, it is anticipated that the negative impact of social media usage on corporate financing performance may be attenuated—or even reversed—among promotion-focutilized CEOs.
Hypothesis 2: The negative influence of CEOs’ social media usage on corporate financing performance is attenuated for CEOs with a promotion focus.
The moderating role of social capital
Prior research suggests that self-presentation is a key motivator for CEOs’ utilize of social media (Men and Tsai, 2016). Self-presentation refers to the strategic utilize of behavior to convey information about one’s identity and personality to others (Goffman, 1959; Baumeister, 1982). Social interaction—particularly through digital platforms—creates opportunities for individuals to manage impressions and shape how they are perceived. For entrepreneurs and executives, social media serves as a unique venue to displaycase their values, leadership style, and brand identity (Aslam et al. 2024). Wang et al. (2020) argue that self-presentation aligns with entrepreneurs’ goal of crafting a favorable personal brand. To achieve this, they commonly utilize persuasive language, visuals, storynotifying, and brand positioning strategies (Hussain et al. 2021). In the context of Weibo, Alghawi et al. (2014) identify four CEO self-presentation strategies: the expert strategy, frifinish strategy, textbook strategy, and diary strategy.
Interestingly, the extent and style of self-presentation on social media are shaped not only by platform norms but also by the size and strength of one’s audience (Zheng et al. 2020; Van De Velde et al. 2015). When sharing content with a broader audience, individuals tfinish to avoid negative disclosures and engage in more strategically curated self-presentation (Oh et al. 2023). Studies also display that a company’s social media presence positively influences its stock price, but only when CEOs’ accounts reach a critical mass of followers (Paniagua and Sapena, 2014). CEOs with a larger and more engaged follower base are more likely to practice positive self-presentation and enhance their firm’s perceived legitimacy and trustworthiness. This enhanced image can reduce financing frictions and positively influence fundraising outcomes.
Given the growing importance of social media in corporate communication—and CEOs’ symbolic role in shaping firm image—the current study utilizes follower count as a proxy for CEO social capital. This measure captures the size of CEOs’ digital networks and reflects their influence and credibility in the online sphere. CEOs’ followers may include not only customers, but also investors, indusattempt peers, analysts, and other stakeholders. Collectively, this social capital contributes to the firm’s intangible assets and can enhance its signaling capacity in capital markets. Therefore, the study proposes the following hypothesis:
Hypothesis 3: The negative influence of CEOs’ social media usage on corporate financing performance is attenuated as the number of followers increases.
The moderating role of business model
This study defines business models based on the type of customer served—B2B, B2C, or hybrid. These categories capture whether a firm’s primary stakeholders are organizations, individuals, or both. Existing literature highlights important differences in how B2B and B2C firms adopt and utilize social media. Specifically, social media is more integral to communication strategies in B2C firms compared to B2B firms (Iankova et al. 2019). In B2B contexts, companies often lack comprehensive digital marketing strategies, and stakeholders generally perceive social media as less effective for relationship-building (Agnihotri and John-Mariadoss, 2022; Agnihotri et al. 2023).
Conversely, B2C firms operate in markets where stakeholders are more dispersed and demand greater transparency. In such environments, social media serves as a powerful tool for communicating corporate values, sharing strategic updates, and fostering customer engagement. B2C firms tfinish to be more advanced in social media marketing, often integrating platforms like Facebook, Twitter, and LinkedIn into their customer relationship strategies (Lamberton and Stephen, 2016; Siamagka et al. 2015). As a result, the public communication of CEOs in B2C firms is more likely to align with organizational goals and stakeholder expectations, thereby mitigating the potentially negative correlations of personal social media usage.
Given these differences, the study posits that CEOs’ social media usage may be more positively received—or at least less negatively interpreted—within B2C firms. Accordingly, the following hypothesis is proposed:
Hypothesis 4: The negative influence of CEOs’ social media usage on corporate financing performance is attenuated for firms with B2C business models.
The study constructs a conceptual model as displayn in Fig. 1.
Leave a Reply