Employee’s Business Outlook Disclosed Through Social Media And Employment Growth: The Case of Jobplanet

Abstract

The recent expansion of the use of social media has served as an opportunity to express users' opinions in real time in various fields such as society, economy, politics, and culture, and brought many platforms that provide various information about companies. Among them, Glassdoor.com which started 2008 in US provides users with evaluations of the current and the former employees of their companies and also provides a outlooks for the company's growth Such a platform has the utility of providing necessary information to whom want to find a job or change jobs. In addition to this, variable studies have shown that the company information provided through these platforms is useful for investors as well. In this study, it was tested whether the corporate growth prospects of employees provided by Jobplanet, a platform with a typical function similar to Glassdoor.com in Korea, have predictive power to predict actual corporate growth. The forecast provided by Jobplanet and the company's financial indicator data received from FnGuide were collected and composed of panel data and analyzed using fixed effect model regression analysis. As a result, it was found that companies with positive prospects had higher employment growth than companies with negative prospects. When the outlook was neutral, the employment growth rate was higher than that of companies with a negative outlook.