Does Social Media Usage Shape Investor Behavior and Decision -Making?

Abstract

Social media platforms are becoming a vital component of modern communication and are increasingly influencing the investment sector and financial decision-making. Drawing on the foundations of TAM and DOI theory, this study investigates how social media is used to make investment decisions. Additionally, it explores the role of gender, age and education as moderating variable in shaping the investment behavior. Using the qualitative approach, and convenience sampling, the study analyses the data from a sample of 782 retail investors. The analysis employs Structural Equation Modelling (SEM), multi-group analysis, slope analysis, and model fitness assessment to give a thorough Grasp of the connection between the variables, according to the result, perceived risk and perceived utility have a weaker association and there is no substantial correlation between social media and investment decisions, although utilization, compatibility, and simplicity of use are key drivers. Additionally, age has a detrimental impact on using social media to make financial decision, whereas education has a beneficial effect.