Analyzing the Influence of Social Media on Individual Investment Decision

Analyzing the Influence of Social Media on Individual Investment Decision

Aman Kumar Gupta , S. Chitradevi

ABSTRACT

This study examines the complex relationship between social media platforms and individual investment decision-making in the contemporary digital financial landscape. Through a comprehensive analysis of 400 retail investors using a stratified random sampling approach, the research investigates how different social media platforms, content formats, and engagement patterns influence investment Behavior, risk perception, and portfolio management decisions. The study employs an integrated theoretical framework combining the Technology Acceptance Model (TAM), Social Cognitive Theory (SCT), and Theory of Planned Behavior (TPB). Key findings reveal that while social media plays a significant role in investment information dissemination, its influence is strongly moderated by educational background, platform choice, and investment experience. Notably, LinkedIn emerged as the preferred platform (30%) for investment information, challenging assumptions about video-based content's dominance. The research also found that higher education levels correlate significantly with increased skepticism toward social media investment advice (r = 0.62, p < 0.01). The findings contribute to behavioral finance literature and offer practical implications for investment platforms, regulators, and individual investors in navigating the intersection of social media and investment decision-making in the digital age.

Keywords: Social media investment, financial decision-making, digital financial markets, behavioral finance, investment education