Investigate the rising use of social media

G1 EDDY

BUS707: APPLIED BUSINESS RESEARCH

Submitted by: Shruti Chudal

Student ID: 12300994

Submitted to: Evi Lanasier

ABSTRACT

This study aims to investigate the rising use of social media in the accounting sector and the changes it makes to the way that accounting is now done. It has used theoretical accounting knowledge and expanded to look at the laws governing social media strategy and how businesses are attempting to implement it in the accounting industry. The goal of the study is to understand how the new accounting procedures are impacted by social media sites like Facebook, Twitter, LinkedIn, and others. It also seeks to understand how social media affects the ethical side of accounting by examining the moral dilemmas that this accounting-related social media campaign has brought forth. The study has mostly focused on social issues connected to accounting since social media strategy is often researched on the social difficulties of accounting.

Background of the Study

Social media has become increasingly important in financial accounting and financial reporting as it allows enterprises and customers to communicate online and exchange information. This has been aided by the availability of smartphones and technological advancements in the networking space, as well as the development of 4G and current advancements toward the 5G network (Baisakhi Mitra Mustaphi, 2020).

The social media approach improves accounting’s uniformity and comparability, as stakeholders and other interested parties can obtain firm information, such as financial reports, audit reports, and yearly reports on the statements of financial situations, using social media (2015). The data presented in this report complies with the usefulness factor of the financial reporting standards so that readers may get accurate, timely, and comparable information.

Research Statement

Due to the advent and widespread use of the Internet and the rapidly expanding consumer digital media, several corporate sectors, including the banking industry, have been forced to consider new methods of connecting with their clients (Cheong and Morrison, 2008). Social media is one of the consumer-reaching strategies that is expanding most quickly. It now plays a significant role in people’s lives and stands for publicly published internet material that is accessible to all users; it is a tool for informing clients. This is why the study becomes extremely relevant concerning the effect of social media on accounting strategies.

Significance of the study

Accounting and financial reporting including social media might benefit from the research. Also, how the big ASX firms use social media for financial reporting will be examined. The ability to analyze the strategic implications of the social media plan for accounting and financial reporting is another advantage.

Research Gap

The fundamental gap which makes the topic in question incomplete and a bit unanswered is that the use of social media for accounting functions is still in its infancy. It is a relatively new phenomenon that is still fast developing. The field may still be open for further research in making it a perfect fit regarding accounting techniques.

Research Objectives

The study aims to comprehend the following:

Getting a thorough grasp of how accounting and financial reporting related to social media

Look at how the major ASX companies utilize social media for financial reporting.

analyze the strategic effects of the accounting and financial reporting social media strategy.

Inquire into how accounting businesses feel about how social media is affecting the profession’s ethical and social outlook.

Research Questions

What connection exists between social media and accounting in the workplace?

What view do ASX companies have on the use of social media for financial reporting?

What effects does the accounting social media approach have?

What do accounting companies think about social media strategy?

Review of the Literature

The literature on the usage of social media by companies is condensed to those particular works that address social media as an accounting technique. Social media usage has significantly increased due to the internet and the expansion of social media communities. Major organizations and corporations are now using social media in accounting reports, as is customary. The accounting strategy of large firms includes using social media to disseminate information about the performance of the company. A rough 70% of internet users are active users of one or more of the three most popular social networking sites: Twitter, Facebook, and Linked In.

The size of the firm is decreasing with the use of social media. Social media channels are dominated by big businesses, with Facebook being the most popular platform. LinkedIn is the primary search engine for professional information and accounting data (2018). Companies and their partners are creating connections on social media, and the exchange of information about the company’s financial situation has been made possible due to their facilitation of the interaction between the business and stakeholders. Social media now serves as a forum and platform for the exchange of accounting information in addition to serving as a primary channel for marketing.

Financial statements and yearly reports can be posted in social media forums and used as a debate starter, where experts can weigh in with their views and opinions on the data (Dorminey et al., 2015). This can help the company in its strategic decision-making.

Findings

Review of the Annual Reports from ASX-Listed Businesses

The businesses with Australian Securities Exchange registrations are those with ASX listings. Several of them have chosen to use this method, posting their annual reports online on company websites and other social media channels. Several of them provide links on social media sites that take people to pages where they may download a soft copy of the annual report (Saxton & Guo, 2020). This has facilitated access to data about the company and its financial situation for clients, stakeholders, investors, and other possible business partners. The report simplifies comparisons, and using social media to get more explanation is simple for interested users. The control of social media use, however, presents a dilemma.

Annual report for the year 2018 from Wesfarmers

According to the company’s annual report, it works with the consumer cyclical sector, home sales, and home remodeling. It is a mining corporation that specializes in coal mining and deals with chemicals and fertilizers. It revealed that the business may employ 220,000 people. Together with an internal and external audit report, the financial statements were included in the annual report (Saxton & Guo, 2020). Wesfarmers Company shared the download link for the financial data on all of its social media channels, including Facebook, Linked In, and Twitter. The market value of the company’s securities is $52.4 billion.

The 2018 Macquarie Group Annual Report

According to the company’s annual report, its shares and assets have a $495 billion market valuation. On social media sites, you may get this accounting information on the company’s financial situation. They consist of the Twitter, Linked In, and Facebook platforms (2018). A sustainability report outlining the company’s adherence to environmental regulations is also included in the yearly report. The business operates in the financial sector, and it is an international investment bank with personnel in more than 25 countries and over 14,000 people.

The National Australian Bank’s 2018 Annual Report

This financial institution has embraced the use of social media and can interact with potential customers there. The N.A.B. makes use of its social media presence to share details about social networking sites (2018). Due to the bank’s extensive use of the Internet for financial reporting and other services, information about the bank is present on social media. The bank has a $76.4 market capacity. Links posted by the bank on social networking sites like Twitter, Linked In and Facebook may be used to access such information.

References

Baisakhi Mitra Mustaphi (2020) “Marketing communications strategy through Social Media,” Journal of Modern Accounting and Auditing, 16(12). Available at: https://doi.org/10.17265/1548-6583/2020.12.004.

Dorminey, J.W., Dull, R.B. and Schaupp, L.C. (2015) “The effect of SEC approval of social media for information dissemination,” Research in Accounting Regulation, 27(2), pp. 165–173. Available at: https://doi.org/10.1016/j.racreg.2015.09.007.

Saxton, G.D. and Guo, C. (2020) “Social Media Capital: Conceptualizing the Nature, acquisition, and Expenditure of social media-based organizational resources,” International Journal of Accounting Information Systems, 36, p. 100443. Available at: https://doi.org/10.1016/j.accinf.2019.100443.

“Social Media” (2015) The Handbook of Online and Social Media Research, pp. 159–162. Available at: https://doi.org/10.1002/9781119206118.part3.

“What is a social media strategy?” (2018) Social Media Strategy: Tools for Professionals and Organizations, pp. 15–26. Available at: https://doi.org/10.4135/9781071801338.n2.

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