Objectives: We descriptively analyze use of different social media channels in the context of investor relations with major German stock-listed companies. We examine what types of capital market-relevant information (e.g. directors‘ dealings, quarterly reports) about social media channels are communicated by these companies. We analyze the relevance of social media channels as channel for investor relations in Germany. We consider a three-year reporting period (2014-2016). Our analysis also addresses possible industry and company size effects.

Background: Supported by information intermediaries (e.g., newspapers; data provider), companies can achieve long-term positive effects on their corporate value when they communicate their current and/or future product and/or services offerings. The reasons are lower costs connected with faster information searches, better information distribution and expansion of the addressee group. It is obvious that these positive effects could also be achieved in the case of social media channels. It is therefore not surprising that many companies have expanded their social media presence in the past few years. Companies often use not only one social media channel, but a multichannel-based approach. The influence of corporate communications on product and/or service-related business information via social media channels and their benefits has already been scientifically investigated. However, there are only few studies for Germany.

Data/Methods: In our analysis, we focus on companies that are listed in the DAX, MDAX, SDAX and TecDAX on the Frankfurt Stock Exchange as of 01.01.2014 (total: 160 companies). Our review period extends from 2014 to 2016. We are investigating these company-related official social media channels: Facebook, Google+, YouTube, Twitter, Instagram, LinkedIn and Xing. Our data on the capital market relevant information on the corresponding social media channels of the companies are hand-collected and based on an investor relations related key words list as search parameters.

Results: Only a few German companies make sustainable use of social media channels in communicating their capital market information. Our results are independent from the companies’ operation focus (B2B or B2P) or in which industry sector the company mainly operates.

Policy Implications: The communication of capital market-relevant information via social media channels would offer a potential higher information efficiency on capital markets. German listed companies rarely exploit this potential. In addition to communicating information on the channels provided by the regulatory authorities, we also recommend using social media channels to distribute capital market-relevant information to different stakeholders.