A STUDY ON THE IMPACT OF SOCIAL MEDIA ON INVESTMENT DECISIONS WITH REFERNCE TO HYDERABAD CITY

finance

Finance has been studied extensively over the years, but behavioural finance—a field that examines how psychological influences affect market outcomes—is still relatively new and ripe for further exploration. With the rapid growth of social media, now an integral part of daily life, it has become a key tool for predicting future outcomes, prompting numerous studies in this area. However, there remains a scarcity of research on how social media content impacts other real-life, time-dependent events. This study addresses that gap while also delving into the field of behavioural finance. The research investigates the impact of social media on investment decisions, with a focus on the Swedish stock market. Employing a quantitative approach, data was collected through questionnaires designed using Google Forms and subsequently analyzed using Microsoft Excel. To better understand the extent to which social media influences investment decisions and to dissect the elements of online social media and their depth of involvement, the study examines three dimensions: information from social media, online community behavior, and firm image. The findings of this study establish a relationship between social media and investment dependent variable, investment decision. In essence, the results confirm that social media does impact investment decisions. This study aims to contribute to the literature for future financial research by exploring a pertinent topic that examines the effect of social networks on movements in capital markets.

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