Effects of social media on firm value for U.S. restaurant companies

This study explores a relationship between a restaurant firm’s social media activity and firm value. Although social media have become significant in restaurateurs’ communications with existing and potential customers, the actual financial consequences thereof seem unclear, and little empirical evidence is available. This study’s findings suggest a positive and linear effect of restaurant firms’ activities in social media on firm value (Tobin’s q) after controlling for several firm characteristics.