Social Media and Financial Influencers: Their Impact on Investment Decision-Making Among Young Investors

The increasing integration of social media into everyday life has significantly transformed investment decision-making among young investors. Financial influencers have emerged as key sources of financial education by simplifying complex investment concepts and making financial information more accessible. As a result, social media has contributed to increased financial awareness, greater market participation, and improved access to investment opportunities. However, the findings also demonstrate that reliance on social media without adequate financial knowledge may expose investors to misinformation, speculative investment behavior, and psychological biases. The credibility of financial influencers and the financial literacy of investors are critical factors influencing the quality of investment decisions. Investors with higher levels of financial literacy are better equipped to evaluate online information objectively and make informed financial choices. The empirical findings of this study confirm that social media exposure, financial influencer credibility, financial literacy, and behavioral biases significantly influence investment decision-making among young investors. These results are consistent with the theoretical foundations of Behavioral Finance Theory, Social Learning Theory, Information Asymmetry Theory, and the Theory of Planned Behavior, all of which explain how digital information and social interactions shape financial behavior. The study concludes that social media should be viewed as a valuable supplementary source of financial information rather than a substitute for independent research or professional financial advice. Responsible investing requires critical evaluation of information, diversification of investment portfolios, and continuous financial education. Furthermore, regulatory authorities and financial institutions must work together to promote transparency, strengthen investor protection, and encourage ethical financial communication in the digital environment. As digital finance continues to evolve, the influence of financial influencers is expected to increase further. Therefore, fostering financial literacy, enhancing regulatory oversight, and encouraging evidence-based investment practices will be essential for supporting sustainable investment decisions among young investors.

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