IMPACT OF SOCIAL MEDIA INFLUENCERS ON RETAIL INVESTORS' STOCK MARKET DECISIONS: A BEHAVIOURAL FINANCE PERSPECTIVE

Abstract

The study investigates the influence of social media influencers on retail investors' stock market decisions from a behavioral finance perspective. Utilizing a quantitative, cross-sectional survey methodology, data were collected from 300 retail investors in India who actively follow financial influencers on platforms like Instagram, LinkedIn, and Twitter. The study examines the extent of reliance on influencers, the role of influencer credibility, and the emotional triggers such as Fear of Missing Out (FOMO) that shape investment behaviors. Structural Equation Modeling (SEM) via AMOS and descriptive statistics were employed to analyze the data. Findings reveal that social media influencers significantly impact retail investors' decisions, with emotional triggers acting as mediating variables, while influencer credibility has a nuanced, sometimes inverse effect.