Published July 29, 2025 | Version v1
Journal article Open

ANALYZING THE IMPACT OF SOCIAL MEDIA ON RETAIL INVESTORS' STRATEGIC APPROACHES TO INVESTMENT ANALYSIS

Authors/Creators

  • 1. RESEARCH SCHOLAR (SRF), DEPARTMENT OF ACCOUNTING, FACULTY OF COMMERCE AND MANAGEMENT STUDIES, JAI NARAIN VYAS UNIVERSITY, JODHPUR, 342001, RAJASTHAN, INDIA.
  • 2. PROFESSOR, DEPARTMENT OF ACCOUNTING AND BUSINESS STATISTICS, GOVERNMENT COLLEGE BARMER, RAJASTHAN, INDIA.

Description

Purpose of the Research: With the increasing penetration of digital platforms, social media has become a dominant source of financial information for retail investors in India. This study aims to explore how social media platforms like YouTube, Twitter, Instagram and Telegram influence retail investors’ preference for fundamental and technical analysis in investment decision-making. The research specifically focuses on how tutorials, influencer content, and short-form media affect short-term trading behaviour and analytical choices.

Key Findings and Results: The findings reveal a significant relationship between social media usage and retail investors' preference for technical analysis. Regression analysis confirms that social media platforms significantly influence short-term trading strategies, while logistic regression shows that exposure to social media-based tutorials substantially increases the likelihood of adopting technical indicators. The results indicate a moderate positive relationship between social media engagement and preference for technical analysis, but no significant association with fundamental analysis.

Conclusion and Recommendation: The study concludes that social media platforms play a critical role in shaping the analytical approaches and trading behaviour of retail investors. It is recommended that investor education programs address both the opportunities and risks of relying on social media for financial advice. Regulators and financial institutions should consider creating verified content and fostering financial literacy campaigns to counter misinformation and herd behaviour. Future collaboration between influencers and credible financial bodies could help enhance the quality of retail investor decision-making in India's dynamic capital market.

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2455-295X

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