Media-driven Financial Decisions: Evaluating the Long-term Impact of Influencer Advice, Misinformation and Investment Behaviour

Abstract:

People now use digital platforms and social media to access financial information and make investment decisions. The investor behaviour of young and inexperienced investors now receives greater influence from financial influencers and online communities and media platforms which include YouTube and Twitter (X) and Telegram. Investors face two major challenges: these platforms provide access to financial content, yet they also present fake information, unstable emotional trading, and unverified trading guidance. This research study investigates how media- driven financial decision making brings about long-term consequences which stem from financial influencers and misinformation and financial literacy as key factors influencing investment patterns.

The researchers conducted their study using a quantitative method which involved distributing a standardized questionnaire to university students and young retail investors who live in India. The study utilized descriptive and inferential statistical methods to examine how media consumption patterns and information source trust and investment behaviour and long-term financial outcome judgment. The results show that most participants depend on social media platforms for their investment research needs while they display more trust in financial influencers than they do for certified financial professionals. Many study participants made their investment choices based on advice from influencers who they followed without conducting proper fact checking which resulted in them experiencing financial losses or regretting their decisions. The research reveals that people encounter financial false information through various channels which include fake stock recommendations and pump-and-dump scams while emotional drivers like FOMO and herd mentality explain their behaviour patterns.

The study shows that social media provides people with financial information yet social media increases investment risks which affect inexperienced investors the most. The results show that financial literacy programs require development while online financial content needs better regulatory control and investors must learn to assess media-based financial recommendations before committing to their investments.