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8 - Social Media Activism

from The Third Era

Published online by Cambridge University Press:  24 March 2022

Seth C. Oranburg
Affiliation:
Duquesne University, Pittsburgh
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Summary

Social media and other online platforms have had a profound impact on corporate activity because they allow ordinary shareholders to directly communiate with each other and publicly demand changes in corporate governance. This newfound “shareholder democracy,” powered by platforms like Twitter, changed the rules of the games for corporate managers and investors alike. Not only can the shareholder “crowd” respond to current events and impact stock prices directly, such as in the case of GameStop, but these platforms also allow disgruntled investors to organize protests and demand accountability and transparency. This Chapter explores various events in the modern era in which shareholders have wielded social media to impact corporate activity, either intentionally or by accident. Although it is unclear whether this consumer engagement produces a profitable effect on company value in the long run, it is clear that we are in a new age of corporate dealings. In light of these new technologies, the SEC has the opportunity to unlock, legalize, and even promote new, financial technologies.

Type
Chapter
Information
A History of Financial Technology and Regulation
From American Incorporation to Cryptocurrency and Crowdfunding
, pp. 96 - 111
Publisher: Cambridge University Press
Print publication year: 2022

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  • Social Media Activism
  • Seth C. Oranburg, Duquesne University, Pittsburgh
  • Book: A History of Financial Technology and Regulation
  • Online publication: 24 March 2022
  • Chapter DOI: https://doi.org/10.1017/9781316597736.009
Available formats
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  • Social Media Activism
  • Seth C. Oranburg, Duquesne University, Pittsburgh
  • Book: A History of Financial Technology and Regulation
  • Online publication: 24 March 2022
  • Chapter DOI: https://doi.org/10.1017/9781316597736.009
Available formats
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Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Social Media Activism
  • Seth C. Oranburg, Duquesne University, Pittsburgh
  • Book: A History of Financial Technology and Regulation
  • Online publication: 24 March 2022
  • Chapter DOI: https://doi.org/10.1017/9781316597736.009
Available formats
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