Firms’ Tweets and Stock Price Discovery

Do firms’ tweets improve stock price discovery at quarterly earnings announcements? Using tweets from S&P 1500 firms between 2008 and 2021, we find that tweeting firms experience stronger price and volume reactions, reduced investor uncertainty, and less post-earnings announcement drift. Tweets enhance firm visibility and increase retail trading, facilitating faster information incorporation into prices. Results are robust to controls, including media coverage, and persist in matched and entropy-balanced samples. Our findings inform regulators aiming to improve market efficiency, investors seeking price-relevant information, and managers exploring communication channels to engage with investors and influence market response to earnings announcements.