Investment Decisions in the Digital Age: Examining the Impact of Social Media-driven Information on Investment Behaviour
DOI:
https://doi.org/10.5281/zenodo.15141965Keywords:
social media, company announcements, technical analysis, market predictions, economic indicators, finfluencer opinions, investment decision makingAbstract
In recent years, social media has emerged as a powerful platform influencing various aspects of daily life, including investment decision-making. This study examines the influence of social media-derived information on investment decisions, focusing on key elements such as company announcements, technical analysis, market predictions, economic indicators, and finfluencer opinions. This research paper explores the role of social media in shaping investment decisions among individuals. The study delves into how various social media such as Twitter, Facebook, YouTube, LinkedIn, Instagram, driven information related to various elements drive investment behaviour. Through a comprehensive survey, individual respondents provided insights into their reactions to these types of information. Participants were asked to complete a detailed questionnaire designed to elicit their opinions and experiences regarding how social media content on various elements affect their investment decisions. The findings suggest that Market Predictions and Technical Analysis are the primary drivers of Investment Decision Making, followed by Company Announcements and Economic Indicators. Finfluencer Opinions have a relatively weaker influence. Thus, social media significantly affects investor behavior, leading to both opportunities and challenges in the financial markets.
Downloads
References
Abu-Taleb, S. K., & Nilsson, F. (2021). Impact of social media on investment decision : A quantitative study which consider s information online, online community behaviour, and firm image (Dissertation). Retrieved from: https://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-184477.
Alrabadi, D. W., et al. (2022). Social media and stock market volatility: A systematic review. Journal of Behavioral and Experimental Finance, 33, 100447.
Bashir, T., Azam, N., Butt, A. A., Javed, A., & Tanvir, A. (2013). Are behavioral biases influenced by demographic characteristics & personality traits? Evidence from Pakistan. European Scientific Journal, 9(29).
Chen, Y., et al. (2022). How social media influences investment decisions: Evidence from Twitter. Journal of Economic Behavior & Organization, 200, 528-542.
Farrell, M., Green, T. C., Jame, R., & Markov, S. (2022). The democratization of investment research and the informativeness of retail investor trading. Journal of Financial Economics, 145(2), 616-641.
Geng, Y., Ye, Q., Jin, Y., & Shi, W. (2022). Crowd wisdom and internet searches: What happens when investors search for stocks?. International Review of Financial Analysis, 82, 102208.
Hassan, M. K., et al. (2022). Social media sentiment and stock market returns: A study of COVID-19 pandemic. Journal of Financial Markets, 60, 100904. https://doi.org/10.1177/09718907241243187.
Jiang, F., et al. (2022). Social media, investor sentiment, and stock price crashes. Journal of Corporate Finance, 72, 102234.
Khan, W., et al. (2022). The impact of social media on investment decisions: A study of individual investors. Journal of Financial Services Research, 61(1), 53-73.
Paniagua, J., & Sapena, J. (2014). Business performance and social media: Love or hate?. Business Horizons, 57(6), 719-728.
Power, D. J., & Phillips-Wren, G. (2011). Impact of social media and Web 2.0 on decision-making. Journal of Decision Systems, 20(3), 249-261.
Raut, Rajdeep & Kumar, Rohit. (2018). Investment Decision-Making Process Between Different Groups of Investors: A Study of Indian Stock Market. Asia-Pacific Journal of Management Research and Innovation, 14(4). doi:10.1177/2319510X1881377.
Singh, S., & Chakraborty, A. (2024). Role of social media in investment decision-making: A comprehensive review and future roadmap. Paradigm, 28(1), 45-64.
Wu, C., Xiong, X., Gao, Y., & Zhang, J. (2022). Does social media distort price discovery? Evidence from rumor clarifications. Research in International Business and Finance, 62, 101749.

Published
How to Cite
Issue
Section
ARK
License
Copyright (c) 2025 Mitul T Parmar, Vishal B Javiya

This work is licensed under a Creative Commons Attribution 4.0 International License.
Research Articles in 'Management Journal for Advanced Research' are Open Access articles published under the Creative Commons CC BY License Creative Commons Attribution 4.0 International License http://creativecommons.org/licenses/by/4.0/. This license allows you to share – copy and redistribute the material in any medium or format. Adapt – remix, transform, and build upon the material for any purpose, even commercially.