The Role of Social Media Influencers in Shaping Investment Choices
Author(s): Subhash Chand, Sunil Kumar
DOI: 10.54660/STMJRD.2026.09.01.01-07
Abstract:
Investors now obtain and comprehend information differently due to the emergence of social media influencers as financial opinion leaders. These individuals, who are sometimes referred to as "finfluencers," provide stock market research, financial education, and investment advice to sizable internet audiences. This review research combines the findings of thirty scholarly articles, working papers, and regulatory reports to examine how social media influencers affect investment choices. In order to understand why investors, pay attention to what influencers have to say, the study examines concepts such as social proof, parasocial interaction, and source trustworthiness. Although its impact on long-term portfolio performance is yet unknown, empirical data shows that influencer-driven content increases trading volume, short-term price volatility, and retail investor engagement. In addition, the analysis examines regulatory solutions aimed at safeguarding investors and discusses the risks of conflict of interest, herd mentality, and misleading information. According to the survey, financial literacy is made more widely available by influencers; nonetheless, in order to lower risks, robust legislative frameworks and guidelines around disclosure are required.
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How to cite this article:
Chand, S., Kumar, S. (2026). The Role of Social Media Influencers in Shaping Investment Choices. The Scholars Time: A Multidisciplinary Journal of Research and Development. 09 (01). 1-07.