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Social media exposure and its influence on individual investment decisions

Riefel, Daan (2024) Social media exposure and its influence on individual investment decisions.

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Abstract:In today's digital age, social media has become not only a central communication tool. Behavioural finance suggests that personality traits may determine how exposure to social media influences investment decisions. While previous research has examined this connection, no studies have focused on Dutch investors, and none have examined the moderating effects of two variables: tie strength - the degree of connectedness between individuals on social media - and the role of financial influencers, individuals who specialise in financial content on social platforms. This study seeks to assess the influence of social media exposure on investment decisions among Dutch investors, considering the moderating role of tie strength and financial influencers. Data was collected from 142 respondents through a questionnaire measuring their perceptions of the influence of social media exposure on investment behaviour. Results show that exposure to social media has a significant impact on investors' propensity to invest and the amount they are willing to allocate to investments. Respondents feel that other investors are more influenced by social media exposure than themselves, a phenomenon known as the third-person effect. This study offers valuable insights for investors and financial advisers who want to understand the role of social media in investment behaviour.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:01 general works
Programme:Business Administration MSc (60644)
Link to this item:https://purl.utwente.nl/essays/104604
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