A Study on Impact of Social Media Financial Influencers on Retail Investors’ Decision-Making
Nidhi Paliwal1, Usha Soren2 and Shailak Jani3
1,2Research Scholar, Parul Institute of Management and Research, Parul University, Vadodara, Gujarat, India. Email: ushakiransoren25@gmail.com
3Assistant Professor, Parul Institute of Management and Research, Parul University, Vadodara, Gujarat, India. Email: 93janisra@gmail.com
Abstract: The rapid growth of social media has significantly transformed the way retail investors access financial information, leading to the emergence of financial influencers (finfluencers) as key sources of investment guidance. This study examines the impact of social media financial influencers on retail investors’ decision-making in India. The research focuses on key factors such as influencer impact, trust, and perceived credibility to understand their influence on investment decisions. The study is based on primary data collected from a sample of 320 respondents using a structured questionnaire measured on a five-point Likert scale. Descriptive statistics, correlation analysis, and simple linear regression were employed using IBM SPSS Statistics to analyze the data. The findings reveal that financial influencers have a significant impact on retail investors’ decision-making, with influencer content emerging as a strong determinant of investment behavior. Trust and perceived credibility of influencers also play a crucial role, indicating that investors are more likely to rely on influencers they perceive as reliable and knowledgeable. The results suggest that while social media platforms have democratized access to financial information and increased investor participation, they have also introduced risks related to misinformation, herd behavior, and overconfidence. The study contributes to the existing literature in Behavioral Finance by providing an integrated analysis of the role of financial influencers in shaping investment decisions. It offers practical implications for investors, influencers, and regulators by emphasizing the need for critical evaluation of information, ethical content creation, and appropriate regulatory oversight. The findings highlight the growing importance of digital platforms in influencing financial behavior and underscore the need for informed and responsible investment decision-making.
Keywords: Financial Influencers, Social Media, Retail Investors, Investment Decision-Making, Trust, Credibility, Behavioral Finance, Digital Finance.
