CEO tweets can lessen impact of negative financial news

University of Illinois study finds that tweets from the C-suite can produce more trusting relationships with investors

Investors are more willing to invest and exhibit higher levels of trust when a firm’s CEO communicates negative financial news via Twitter than when it is disclosed through other traditional channels, a study has found. 

Further researcher from the University of Illinois College of Business also shows that direct tweets from the CEO can help build a more enduring form of trust, which means that investors tend to discount the negative news as a one-time event.