Bragging On Twitter Is So Annoying: How CEOs’ Social Media Self-Presentation Strategy, Auditor Thinking Style, and Auditor Experience Influence Auditor Judgment

Following the SEC formally adopting Twitter and Facebook as disclosure outlets, existing research shows that investors respond positively to CEOs’ use of social media such that CEOs can strategically use social media to influence stakeholder behavior. While such strategies may be intended for investors and customers, auditors could voluntarily or under firm direction, be following clients on social media and thus also be influenced. In an experiment with 359 auditors from a national accounting firm as participants, I examine whether CEOs’ self-presentation strategy of modesty or bragging on social media influences auditors’ inventory obsolescence judgments and whether such effect differs based on an auditors’ disposition towards intuitive or analytical thinking and their experience level. I provide evidence that CEOs who present themselves as modest (brag) elicit positive (negative) feelings from auditors. I show that analytical thinking auditors, more so than intuitive thinkers use those positive (negative) feelings as information in their judgments. However, this impact of emotions on analytical thinking only results in less efficient and lower quality judgments for more experienced auditors. This is because intuitive effectiveness relies on domain relevant knowledge which less experienced auditors lack and thus, their judgments are more influenced by CEOs social media behavior. My results contribute to the emerging auditing literature examining the effects of clients’ social media activity and impact of thinking styles on auditor judgment. My findings have important implications for audit firms and regulators as they consider policies regarding auditors’ use of social media and professional skepticism.

Embargo status: Restricted until 06/2027. To request the author grant access, click on the PDF link to the left.