The use of Internet has radically transformed financial reporting and investor relations
(IR). More recently, the diffusion of social media (SM) as crucial information channels has opened
new avenues for companies‟ dialogue with capital markets, with
considerable implications for
accounting studies. This paper provides a critical review of the literature on SM in the accounting
domain in order to shed light on the ongoing debates in the field with two main objectives. First, it
aims to support future
research by identifying possible directions to deepen our understanding of
this emerging phenomenon. Second, it addresses some crucial issues that are particularly relevant
also for companies considering how to participate in SM for IR purposes. Overall, e
mpirical
evidence highlights several benefits for companies especially if adopting a proactive approach to
SM. Further research might offer even stronger contributions if accepting the challenge to
encompass the complexity and distinctive features of these
media.