The Power of Social Media: Shaping Risk Perception and Investment Decisions Among Young Equity Investors
Purpose: This research study examines the pivotal role of social media in shaping risk perception and investment behavior among young equity investors. It focuses on the impact of social media content on their attitudes toward risk and the decision-making process in investments. Design/Methodology:...
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| Format: | Article |
| Language: | English |
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Universitas Islam Negeri Fatmawati Sukarno Bengkulu
2025-03-01
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| Series: | Al-Intaj |
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| Online Access: | https://ejournal.uinfasbengkulu.ac.id/index.php/Al-Intaj/article/view/5205 |
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| author | Ika Yoga Rina Hastuti Wahyu Pramesti Anim Rahmayati |
| author_facet | Ika Yoga Rina Hastuti Wahyu Pramesti Anim Rahmayati |
| author_sort | Ika Yoga |
| collection | DOAJ |
| description | Purpose: This research study examines the pivotal role of social media in shaping risk perception and investment behavior among young equity investors. It focuses on the impact of social media content on their attitudes toward risk and the decision-making process in investments.
Design/Methodology: This study applied the quantitative method using the survey technique to extract data from 250 young stock investors. The data was collected via questionnaires based on a semantic differential scale and analyzed using the SEM-PLS method in order to get complex relationships between the variables unraveled.
Findings: Social media significantly shapes young investors' risk perceptions and investment behavior. It not only directly influences investment decisions but also mediates risk perception, leading to changes in investment behavior.
Practical implications: This is crucial evidence that informs the place for social media in integrating financial literacy into education. The fact that young investors are supposed to make a critical analysis of any information brought to them is important for these programs of financial literacy. The potential biases and misguidance in the information that can be found on social media should be made known to the young investors in order to raise their level of decision-making.
Originality/Value: This paper offers new insights into the impact of social media on young investors' behavior, highlighting risk perception as a key mediator. It also emphasizes financial literacy programs—such as workshops and gamified learning—to counter social media biases. Additionally, this study fills gaps in the literature by exploring how social media shapes risk perception and investment decisions |
| format | Article |
| id | doaj-art-dca57b52d90843b6b35a083f772a70b8 |
| institution | Kabale University |
| issn | 2476-8774 2621-668X |
| language | English |
| publishDate | 2025-03-01 |
| publisher | Universitas Islam Negeri Fatmawati Sukarno Bengkulu |
| record_format | Article |
| series | Al-Intaj |
| spelling | doaj-art-dca57b52d90843b6b35a083f772a70b82025-08-22T05:03:59ZengUniversitas Islam Negeri Fatmawati Sukarno BengkuluAl-Intaj2476-87742621-668X2025-03-0111118720310.29300/aij.v11i1.52054620The Power of Social Media: Shaping Risk Perception and Investment Decisions Among Young Equity InvestorsIka Yoga0Rina Hastuti1Wahyu Pramesti2Anim Rahmayati3Department of Sharia Business Management, Faculty of Economics and Islamic Business, UIN Raden Mas Said Surakarta, Central JavaDepartment of Sharia Business Management, Faculty of Economics and Islamic Business, UIN Raden Mas Said Surakarta, Central JavaDepartment of Sharia Accounting, Faculty of Economics and Islamic Business, UIN Raden Mas Said Surakarta, Central JavaDepartment of Sharia Accounting, Faculty of Economics and Islamic Business, UIN Raden Mas Said Surakarta, Central JavaPurpose: This research study examines the pivotal role of social media in shaping risk perception and investment behavior among young equity investors. It focuses on the impact of social media content on their attitudes toward risk and the decision-making process in investments. Design/Methodology: This study applied the quantitative method using the survey technique to extract data from 250 young stock investors. The data was collected via questionnaires based on a semantic differential scale and analyzed using the SEM-PLS method in order to get complex relationships between the variables unraveled. Findings: Social media significantly shapes young investors' risk perceptions and investment behavior. It not only directly influences investment decisions but also mediates risk perception, leading to changes in investment behavior. Practical implications: This is crucial evidence that informs the place for social media in integrating financial literacy into education. The fact that young investors are supposed to make a critical analysis of any information brought to them is important for these programs of financial literacy. The potential biases and misguidance in the information that can be found on social media should be made known to the young investors in order to raise their level of decision-making. Originality/Value: This paper offers new insights into the impact of social media on young investors' behavior, highlighting risk perception as a key mediator. It also emphasizes financial literacy programs—such as workshops and gamified learning—to counter social media biases. Additionally, this study fills gaps in the literature by exploring how social media shapes risk perception and investment decisionshttps://ejournal.uinfasbengkulu.ac.id/index.php/Al-Intaj/article/view/5205social mediarisk perceptioninvestment behavioryoung investors |
| spellingShingle | Ika Yoga Rina Hastuti Wahyu Pramesti Anim Rahmayati The Power of Social Media: Shaping Risk Perception and Investment Decisions Among Young Equity Investors Al-Intaj social media risk perception investment behavior young investors |
| title | The Power of Social Media: Shaping Risk Perception and Investment Decisions Among Young Equity Investors |
| title_full | The Power of Social Media: Shaping Risk Perception and Investment Decisions Among Young Equity Investors |
| title_fullStr | The Power of Social Media: Shaping Risk Perception and Investment Decisions Among Young Equity Investors |
| title_full_unstemmed | The Power of Social Media: Shaping Risk Perception and Investment Decisions Among Young Equity Investors |
| title_short | The Power of Social Media: Shaping Risk Perception and Investment Decisions Among Young Equity Investors |
| title_sort | power of social media shaping risk perception and investment decisions among young equity investors |
| topic | social media risk perception investment behavior young investors |
| url | https://ejournal.uinfasbengkulu.ac.id/index.php/Al-Intaj/article/view/5205 |
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