To counter this bias, companies need to use social media to also share negative information – in an accurate and transparent way. This provides a proactive opportunity for a company to share how the company is responding to an adverse market movement or crisis event, such as a cybersecurity breach. 

Early notice of negative news that is balanced and truthful, together with clear descriptions of how the impact is being managed and the risks controlled, can increase the level of trust.

Due to the reduced information asymmetry of social media, by refusing to post negative information as it arises a company is leaving itself exposed to the “wisdom of the crowd” which will speak into the vacuum and erode trust.

Reputation – organisations can build trust and confidence through accurate and timely content released to the market, responding to both positive and adverse events and market movements. Comments on social media provide a measure of investor trust.

Groups – organisations need to recognise the dynamic of group formation, where investors from various backgrounds, demographics and professions come together online, based on their shared investment interests. Although such groups can self organise, there is opportunity for the organisation to facilitate and enhance community formation and engagement, recognising the need to respect the privacy of individual investors. There is opportunity for the organisation to learn from the investor group, regarding their preferences, needs and concerns.

Sharing – there is the potential for misinformation to be shared rapidly and wildly through investor networks via social media. Investor content can be based on rumours, false announcements and assumptions that fill a void where an organisation remains silent when an adverse market event occurs.

Presence – linked to the high velocity conversations, organisations need to monitor the concerns being aired by investors on social media and provide real time responses.

Companies choose which information to disclose on social media, emphasising positive news. Organisations make decisions on what content appears and how it shapes investor perception. They act as gatekeepers of what investors see.

Timing and Frequency of Posts (When and How Often to Engage)

The article describes companies actively deciding how frequently to broadcast earnings announcements and reminders on platforms like Twitter—sometimes every quarter to maximise investor engagement and market response.

Choosing the Organisational Representative (Who Will Speak Online)

The article provides examples where senior executives themselves—such as CFOs—serve as the company’s voice on social media, engaging directly with investors. Determining who represents the organisation is a core element of curation.

Tailoring the Presentation Style and Format for Specific Platforms (How to Engage)

Companies curate not only what they say but how they say it—choosing formats (e.g., short tweets, videos, informal tone), tailoring disclosure styles and breaking messages into smaller posts based on expectations for various social media platforms. This is curation because it involves how communication is packaged and delivered.

All material information must be shared with stock exchanges, required by law, but can also be shared on social media platforms after this. Sharing only positive information leaves a company open to criticism when negative information is also available through other sources.

To ensure trust in social media engagements a company must be able to demonstrate that the source (social media account) is legitimate, and not fake. Access to post from these accounts on behalf of the company should be strictly limited, and all communications should go through a disclosure process before they are posted.

Identity and Presence - Clear social media presence and engagements, showing real people and situations will demonstrate transparency and support reputation.

Conversations - aligned to sharing

Relationships - where the relationship is poor between the company and those that are engaged (e.g. protest) this can increase the potential for misinformation to then be spread, aligned to Sharing and Conversations.

• Sharing: Companies can quickly share financial results, announcements and other important information.

• Conversations: Investors can ask questions and communicate directly with the company.

• Reputation: Honest and reliable communication helps the company build trust with investors.

When communicating negative information, companies should be transparent about what has happened, explain the impact, and outline the actions being taken to address the issue. This demonstrates accountability and gives investors confidence that risks are being actively managed. By providing balanced, timely, and consistent updates, organisations can strengthen trust, support informed decision-making, and maintain their reputation, even during difficult periods.

Trust is important because investors need confidence that the company is honest, reliable, and well managed. A positive reputation makes investors more likely to support the business and trust its decisions.

Communication matters because investors want to hear directly from the company and have opportunities to ask questions or seek clarification. Open communication helps build stronger relationships and reduces misunderstandings.

Sharing Information is essential because investors rely on timely updates about company performance, financial results, and important business developments. Social media allows this information to be shared quickly and easily.

Investors are very likely to share findings that are impressive or ordinary within their network, so it’s prudent that content is accurate.

Identity Block

Sharing identity content is very important to your investor to help build trust and transparency. The more they feel they know you and can put a few to a name or relate your back story or career journey the more likely they are to engage.

Reputation Block

The more followers and engagement that you receive shows your credibility and popularity with your investors.