Exploring the Role of Social Media in Investment Decision-Making Among Indian Youth Professionals

Authors

  • Ms. Anumol M V Assistant Professor, Amity Global Business School, Kochi, Kerala, INDIA Author
  • Ms. Mariya N P Territory Sales Manager, Vodafone Idea Ltd. Kerala, INDIA Author

DOI:

https://doi.org/10.31305/rrjss.2025.v05.n01.005

Keywords:

Social media influence, financial capability, investment decisions, digital behavior, financial literacy, behavioral finance

Abstract

This study investigates the impact of social media on individual investment decision making and examines whether financial capability moderates this relationship. A quantitative, cross-sectional survey was conducted among recently employed individuals in Kochi, India, using structured questionnaires. The results reveal that both social media influence and financial capability significantly and positively affect investment decision making. However, financial capability does not significantly moderate the effect of social media’s impact. These findings highlight the influential role of social media in contemporary investment behavior, irrespective of financial capability levels.

Author Biographies

  • Ms. Anumol M V , Assistant Professor, Amity Global Business School, Kochi, Kerala, INDIA

    Ms. Anumol M.V. is currently serving as Assistant Professor (Finance) at Amity Global Business School, Kochi. With over 15 years of academic experience and a year in industry, she brings a strong foundation in finance, accounting, and entrepreneurship education. She holds an MBA in Finance and Human Resources and is pursuing her Ph.D. in Entrepreneurship at Rajagiri College of Social Sciences (Mahatma Gandhi University). She has previously worked with reputed institutions such as Kochi Business School and Mar Athanasius College. Her research interests include entrepreneurial finance, fintech adoption, and behavioural finance, with several national and international publications. A university rank holder in B.Com. and a life member of ISTD, Kochi, she is committed to blending theoretical knowledge with practical insights for impactful teaching.

  • Ms. Mariya N P, Territory Sales Manager, Vodafone Idea Ltd. Kerala, INDIA

    Mariya N. P holds a Master of Business Administration (MBA) with a specialization in Finance and Marketing from Amity University, and a Bachelor of Business Administration (BBA) from Dr. C.V. Raman University. She completed her internship at Nergy India Pvt. Ltd., where she conducted a research project on the factors influencing brand image. Her academic background is complemented by strong analytical and research skills, with proficiency in SPSS, SAP, and MS Excel (Associate). With a keen interest in Finance and Marketing, she combines theoretical knowledge with practical application. She received an immediate placement offer as a Territory Sales Manager at Vodafone Idea Ltd., recognizing her professional competence and academic excellence. Her research orientation and industry exposure position her as a promising contributor in the fields of business and management.

References

Banerjee, A. V. (1992). A simple model of herd behavior. The Quarterly Journal of Economics, 107(3), 797–817. https://doi.org/10.2307/2118364 DOI: https://doi.org/10.2307/2118364

Bandura, A. (1986). Social foundations of thought and action: A social cognitive theory. Englewood Cliffs, NJ: Prentice-Hall.

Bushra, A., & Mir, S. (2024). Role of online reviews and trust in digital investment platforms. Journal of Financial Technology, 12(2), 88–105.

Da, Z., Engelberg, J., & Gao, P. (2015). The sum of all FEARS: Investor sentiment and asset prices. Review of Financial Studies, 28(1), 1–32. https://doi.org/10.1093/rfs/hhu072 DOI: https://doi.org/10.1093/rfs/hhu072

Fernandes, D., Lynch, J. G., & Netemeyer, R. G. (2019). Financial literacy, financial education, and downstream financial behaviors. Management Science, 65(9), 4461–4483. https://doi.org/10.1287/mnsc.2017.3046

Florendo, J., & Estelami, H. (2024). Cognitive bias and influencer persuasion in digital finance. Journal of Consumer Affairs, 58(1), 102–119.

Fong, C. L., Zhang, Y., & Lee, D. (2024). Financial capability in the digital era. Journal of Consumer Finance, 39(1), 45–63.

Gervais, S., Lynch, A., & Musto, D. K. (2021). Herding behavior in financial networks. Finance Research Letters, 40, 101730. https://doi.org/10.1016/j.frl.2020.101730 DOI: https://doi.org/10.1016/j.frl.2020.101730

Hirshleifer, D. (2022). Behavioral finance and its future. Annual Review of Financial Economics, 14, 155–175. https://doi.org/10.1146/annurev-financial-110221-104931

Hong, H., Kubik, J. D., & Stein, J. C. (2020). Social interaction and stock market participation. Journal of Finance, 75(2), 133–170. https://doi.org/10.1111/jofi.12867 DOI: https://doi.org/10.1111/jofi.12867

Huston, S. J. (2009). Measuring financial literacy. Journal of Consumer Affairs, 44(2), 304–311. https://doi.org/10.1111/j.1745-6606.2009.01137.x DOI: https://doi.org/10.1111/j.1745-6606.2010.01170.x

Joshi, R., & Rawat, S. (2025). Investor sentiment and herding in the Indian stock market. International Journal of Behavioral Finance, 20(1), 25–39.

Karabulut, Y., D'Alessandro, G., & Hasanudin, N. (2024). Systematic review of digital financial behavior. OECD Financial Working Papers, 23, 44–63.

Kaustia, M., & Knüpfer, S. (2023). Peer effects in retail investing. Journal of Financial Economics, 148(1), 32–58. https://doi.org/10.1016/j.jfineco.2022.05.015

Liu, Y., Zhou, M., & Wang, R. (2024). Trust and investment decision in digital platforms. Journal of Economic Psychology, 89, 102648.

Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5–44. https://doi.org/10.1257/jel.52.1.5 DOI: https://doi.org/10.1257/jel.52.1.5

Lusardi, A., & Mitchell, O. S. (2017). The state of financial literacy around the world. Journal of Pension Economics & Finance, 16(3), 337–378. https://doi.org/10.1017/S1474747215000230

Lyons, A. C., Palmer, L., Jayaratne, K. S., & Scherpf, E. M. (2020). Are we making the grade? A national overview of financial education practices. Journal of Financial Counseling and Planning, 31(1), 104–118.

Przybylski, A. K., Murayama, K., DeHaan, C. R., & Gladwell, S. (2013). Motivational, emotional, and behavioral correlates of fear of missing out. Computers in Human Behavior, 29(4), 1841–1848. https://doi.org/10.1016/j.chb.2013.02.014 DOI: https://doi.org/10.1016/j.chb.2013.02.014

Robb, C. A. (2011). Financial knowledge and credit card behavior of college students. Journal of Family and Economic Issues, 32, 690–698. https://doi.org/10.1007/s10834-011-9259-y DOI: https://doi.org/10.1007/s10834-011-9259-y

Shah, K., Thomas, A., & Rane, P. (2024). Social media and investment decisions: An emerging behavioral finance framework. Greenation International Journal of Economics and Accounting, 11(2), 112–125.

Singh, R., & Chakraborty, A. (2024). Influence of Twitter and Instagram on equity trading behavior. Journal of Digital Finance, 8(1), 44–61.

Sivaramakrishnan, S., Srivastava, M., & Rastogi, A. (2017). Attitudinal factors, financial literacy, and stock market participation. International Journal of Bank Marketing, 35(5), 818–841. DOI: https://doi.org/10.1108/IJBM-01-2016-0012

Tversky, A., & Kahneman, D. (1974). Judgment under uncertainty: Heuristics and biases. Science, 185(4157), 1124–1131. https://doi.org/10.1126/science.185.4157.1124 DOI: https://doi.org/10.1126/science.185.4157.1124

Van Rooij, M., Lusardi, A., & Alessie, R. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449–472. DOI: https://doi.org/10.1016/j.jfineco.2011.03.006

Wang, F., & Hanna, S. (1997). Does risk tolerance decrease with age? Financial Counseling and Planning, 8(2), 27–32.

Xiao, J. J. (2008). Applying behavior theories to financial behavior. In J. J. Xiao (Ed.), Handbook of consumer finance research (pp. 69–81). Springer. DOI: https://doi.org/10.1007/978-0-387-75734-6_5

Xiao, J. J., & Meng, K. (2024). Financial capability and financial anxiety: comparison before and during the COVID-19 pandemic. International Journal of Bank Marketing, 42(6), 1348-1369. DOI: https://doi.org/10.1108/IJBM-03-2023-0140

Zhou, M., & Lee, H. (2024). Digital literacy, trust, and financial behavior. Journal of Consumer Policy, 47(2).

Downloads

Published

2025-06-30

How to Cite

Anumol, M. V., & Mariya, N. P. (2025). Exploring the Role of Social Media in Investment Decision-Making Among Indian Youth Professionals. Research Review Journal of Social Science , 5(1), 34-41. https://doi.org/10.31305/rrjss.2025.v05.n01.005