Social Media Financial Content and Investment Decision-Making among Young Investors: A Behavioural Finance Perspective

Abstract

The growing influence of social media has transformed the way young investors access financial information and make investment decisions. This study examines the impact of Social Media Financial Content (SMFC) on Investment Decision-Making (IDM) by investigating the roles of Investor Trust (IT) and Financial Self-Efficacy (FSE). Drawing upon Social Cognitive Theory, Source Credibility Theory, and Behavioural Finance Theory, the study proposes a framework explaining the psychological mechanisms through which digital financial content influences investor behaviour. A quantitative research design was adopted, and data were collected from 365 young investors using a structured questionnaire. The proposed model was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that Social Media Financial Content significantly enhances both Investor Trust and Financial Self-Efficacy, which, in turn, positively influence Investment Decision-Making. The study highlights the importance of credible, educational, and relevant financial content in fostering informed investment behaviour among young investors. The research contributes to the literature by conceptualizing Social Media Financial Content as a multidimensional construct encompassing information quality, credibility, educational value, relevance, engagement, timeliness, and usefulness. Furthermore, it offers practical implications for financial educators, fintech firms, policymakers, investment platforms, and financial content creators to promote responsible investing and improve financial literacy in the digital era..