The Impact of YouTube on Present and Future Firm Value: Using Unstructured Text Analysis

Abstract

This study aims to provide research results through empirical analysis on how customers’ reactions on social media affect the present and future value of a company. This research selected Korean KOSPI-listed companies that actually own and operate YouTube channels, and collected data through text mining the comments on YouTube videos with high views. In addition, the TF-IDF value was calculated, keywords were extracted, and keywords were classified into three groups through topic modeling. The characteristics of the three groups could be transformed into a “current-oriented topic” as advertising promotion content focused on fun or interest; a “future-oriented topic” as critical content pointing out problems, and a “neutral topic” as content of a neutral attitude toward companies. This study uses a regression analysis model to perform an empirical analysis by setting a company’s YouTube-related variable as an independent variable and setting a company’s current value and future value-related variable as a dependent variable. The results of this research are as follows. First, this paper found that companies that directly operate and manage YouTube accounts currently have lower corporate value than those that do not. Second, this study also found that companies which directly operate and manage YouTube accounts have higher future corporate value than those that do not. Third, the results showed that if a customer simply mentions interesting content or advertising/promotion-related content through corporate YouTube comments, the current corporate value may be improved in the short term, but in the long term, it has a negative effect on future corporate value. Fourth, the results of this research also presented that if a customer criticizes a company or points out a company’s problems through YouTube comments, the current corporate value decreases due to damage to the company’s image, but it was found that the future corporate value increases. Fifth, this paper found that neutral content, not just for fun and interest, nor for constructive criticism or dissatisfaction with the company, was not related to the company’s current and future corporate value. The contributions and expected effects of this paper are as follows. First of all, this paper provides useful information through research results which shows that companies are more advantageous in improving future corporate value from a long-term perspective by strategically operating social media directly. In addition, the research results of this study objectively demonstrated through YouTube channels that it is more helpful for companies in the long run to respond well to customer complaints and negative opinions, and to implement policies that continuously manage customer opinions. Finally, the research method used in this paper, that is, the research methodology that conducted empirical analysis through quantification of unstructured tax data, is expected to provide guidelines for many scholars to expand the scope of data available for empirical research in the future.