An Investigation of the Relationship Between Privacy Crisis, Public Discourse on Privacy, and Key Performance Indicators at Facebook (2004-2021)
Citation:
Eachempati, P., Muzellec, L., & Jha, A., An Investigation of the Relationship Between Privacy Crisis, Public Discourse on Privacy, and Key Performance Indicators at Facebook (2004-2021), Personal Data Protection and Privacy Law, London, 2022Abstract:
We use Facebook as a case study to investigate the complex relationship between the firm’s
public discourse (and actions) surrounding data privacy and the performance of a business
model based on monetizing user’s data. We do so by looking at the evolution of public
discourse over time (2004–2021) and relate topics to revenue and stock market evolution
Drawing from archival sources like Zuckerberg We use LDA topic modelling algorithm to
reveal 19 topics regrouped in 6 major themes. We first show how, by using persuasive and
convincing language that promises better protection of consumer data usage, but also
emphasizes greater user control over their own data, the privacy issue is being reframed as one
of greater user control and responsibility. Second, we aim to understand and put a value on the
extent to which privacy disclosures have a potential impact on the financial performance of
social media firms. There we found significant relationship between the topics pertaining to
privacy and social media/technology, sentiment score and stock market prices. Revenue is
found to be impacted by topics pertaining to politics and new product and service innovations
while number of active users is not impacted by the topics unless moderated by external control
variables like Return on Assets and Brand Equity.
Author's Homepage:
http://people.tcd.ie/akjha
Author: Jha, Ashish
Other Titles:
Personal Data Protection and Privacy LawType of material:
Conference PaperAvailability:
Full text availableKeywords:
Financial performance, Business model, Topic modelling, Privacy, Social media, Data protection, Public discoursesSubject (TCD):
Digital Engagement , Digital Humanities , Inclusive SocietyMetadata
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