Social Media Financial Communication and Investor Relations Among Listed Companies in Nigeria

The growing use of social media platforms by listed companies in Nigeria for financial communication has transformed investor relations practices, yet concerns about accuracy, regulatory compliance, and market manipulation through selective online disclosures raise important accountability questions. This study examined the effect of social media financial communication on investor relations among companies listed on the Nigerian Exchange Group, with emphasis on companies with active digital communication strategies. The study was grounded in the disclosure theory, which posits that the quality and accessibility of financial communications shape investor confidence and capital market efficiency. A survey research design was adopted, with a population of 340 institutional investors, retail shareholders, and investor relations officers. A sample of 185 respondents was drawn through purposive and snowball sampling. A validated questionnaire was administered, and data were analyzed using multiple regression analysis and content analysis of selected corporate social media accounts. Findings showed that frequency, accuracy, and regulatory compliance of social media financial disclosures positively and significantly predicted investor confidence and engagement levels. However, selective disclosure and unverified financial claims on social media were associated with increased investor skepticism. The study concluded that social media enhances investor relations when used responsibly and in compliance with regulatory disclosure standards. It was recommended that the Securities and Exchange Commission should issue clear guidelines on social media financial communication for listed companies, including mandatory verification protocols for material financial disclosures.

Keywords: Social media, financial communication, investor relations, disclosure theory, Nigerian Exchange Group