Social media usage vs. stock prices: an analysis of Indian firms

This paper is designed to investigate in detail the way top traded firms of India use social media (SM) and how it influences their stock prices. The purpose of this paper is to observe whether there exists any relationship between the SM usage and the company's stock price. This paper relates NSE stock price trends of each firm with its SM usage and SM popularity, using tools such as correlation, regression and ANOVA. For the database, SM activities of NIFTY 51 firms, such as monthly number of posts and monthly number of replies to users, were recorded on the four SM platforms: Facebook, Youtube, Twitter and LinkedIn. This paper draws a conclusion with an assertion about the extent to which a firm should give importance to investing money in SM adoption strategies, SM marketing strategies, SM customer care strategies and so on.