In January 2013, ASX-listed Whitehaven Coal suffered a 9% share price fall that wiped $314 million off its market capitalisation.

A trading halt was called to restore order and establish that the press release was a hoax before the share price recovered.

The alleged perpetrator of the hoax email, Jonathan Moylan, was this week charged by the Australian Securities and Investments Commission for misleading the market.

However, Coe said the onus was on company directors to monitor information broadcast across all channels to ensure its market capitalisation and reputation did not go into freefall.

“ASX’s latest Guidance Note 8 on continuous disclosure makes it clear that listed companies are obliged to monitor what is being said about them on social media,” he said.

“The ASX says companies do not have to respond to every rumour but ASX does require them to respond in a timely manner if the rumour appears to contain credible facts and is having a material impact on a company’s share price or traded volume.

“However, savvy companies are realising that they can do more than just be reactive. They can use social media to lead conversations and minimise trouble before and after it strikes.”

Other Australian resources companies, such as rare earths group Lynas, have come under reputational attack through social media.

“Thousands of anti-Lynas videos have been posted onto YouTube by Malaysian protestors who – rightly or wrongly – fear nuclear waste from its proposed plant,” Coe said.

Coe recommends that companies proactively monitor and seed relevant corporate messages and values through social media channels to build a profile robust enough to deal with attacks on reputation.

Australasian Investor Relations Association chief executive Ian Matheson also advises listed companies to consider introducing a company-driven social media presence so they can establish themselves as a credible information source to avoid being a victim of wrong info from third parties.