Use of social networks for financial and performance reporting Research Paper

Use of social networks for financial and performance reporting - Research Paper Example This research analyses how the financial reporting and organizations performance have improved for the past few years because of increased use of social networking. Inescapabilty and popularity of the social network has largely created awareness and improved the relationship between the business and the stakeholders by introducing a new way in which financial information is disseminated and eventually consumed. Companies primarily use the social media to report their performances so that the information can reach larger audience who may be interested. Information that was previously released in news releases, conference calls and presentations are revealed through twitter because of its ability to swiftly and efficiently receive and share information from a trusted source. There are live tweets of companies’ earning call enabling shareholders who are physically absent during call to receive live information. According to Scott (2013), â€Å"Of Facebook’s nearly one billion strong users, approximately 200 million are mobile only.† On the other hand, YouTube, and Flickr may be utilized in providing videos regarding earning calls, do presentations thus engaging investors with the business financial reports as well as sharing information such as crucial business transactions that include merger and acquisition. It is worth noting that the social network has the ability to reach even remote communities thus enabling the company to operate in distant and remote places while raising awareness about them. There are many reasons justifying the use of social media in financial reporting and performance. Social media’s ability to reach a huge audience makes it the best communication channels for businesses compared to the conventional methods that are inaccessible to some people. According to Scott (2013), â€Å"Statistical research has revealed that more than 95 per cent of  Facebook users log into their account every day. The same number