Impact of Social Media on Impulsive Investment Behavior Among Young Retail Investors

Social media platforms have experienced rapid growth which has caused major changes in how young retail investors obtain financial information and make investment choices. The research investigates how social media platforms spread financial information which results in impulsive investment behaviour among investors through their various exposure levels and their investment decisions. Researchers conducted primary data collection through a structured questionnaire which included 131 respondents and they performed statistical analysis using descriptive statistics and regression techniques with Microsoft Excel. The results demonstrate that investors find moderate exposure to financial content on social media platforms but they exhibit higher rates of behavioural bias together with impulsive investment behaviour. The study demonstrates that social media exposure leads to increased behavioural bias which results in higher rates of impulsive investment behaviour. The findings demonstrate that psychological factors determine how investors respond to financial information which they find on social media platforms. The research establishes three requirements which include better understanding of human behaviour through research studies and enhanced financial knowledge and responsible management of online financial resources which enables investors to make better investment decisions based on rational thinking.