This study applies Oliver’s (1991) theoretical framework on strategic responses to institutional pressures to examine FTSE 350 firms’ financial disclosure decisions on social media from a socio-political perspective. Using corporate financial disclosure on Twitter as the institutional setting, I investigate key institutional determinants influencing firms’ strategic responses to the pressure of disclosing earnings-related information during annual earnings announcement events. The findings reveal that firms with higher levels of public attention in the past are more likely to disclose earnings information on Twitter in response to public pressure. Additionally, the size of a firm’s audience on social media influences its disclosure strategy—firms with larger followings tend to avoid disclosing material information during earnings announcements to manage competing institutional expectations. Industry norms and corporate social media routines further shape firms’ disclosure behaviours. Moreover, the social network among FTSE 350 firms on Twitter serves as a significant institutional force, compelling firms to align with disclosure expectations. This study contributes to institutional theory by demonstrating that corporate financial disclosure on social media is a strategic response to institutional pressures rather than merely a cost-minimization decision, expanding the discourse on corporate social media use within financial communication.

Siwen Liu. Strategic Responses to Institutional Pressures: Evidence from Corporate Financial Disclosure on Social Media. Academic Journal of Business & Management(2025), Vol. 7, Issue 4: 13-20. https://doi.org/10.25236/AJBM.2025.070402.

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