Business Commons^™

The Determinants Of Firm Profitability: The Effect Of Social Media, Nicholas Schmidt

CMC Senior Theses

This study seeks to explore whether social media plays an important role in determining a firm’s profits. Using data from 392 Large American firms from the period 2005-2013, obtained primarily from the database, COMPUSTAT, I find that a firm’s adoption of Social Media plays a minor role in determining profits, while higher Lagged Profits, Lagged Productivity, Firm Sizes, and Advertising Expenses lead to higher profits.