Financial Decision-Making In The Social Media Era: How Social Media Affects Investment Decisions Among University Students

Abstract

With growing interest in investing among young adults, this study examines the impact of exposure to investment-related content, particularly through TikTok, on university students' investment decisions and risk attitudes. Participants are randomly assigned to one of three conditions: a neutral control, a TikTok video with investment advice, or a text-based excerpt. A realistic investment task and psychological measures assess changes in investment intention, overconfidence, and risk tolerance. The study also explores whether financial literacy moderates these effects. The findings of this study reveal that exposure to influencer-based TikTok videos significantly increases students' investment intentions and risk tolerance. Contrary to expectations, however, financial literacy does not moderate these effects, suggesting that even financially literate students remain prone to persuasive digital content. These results highlight the need for financial education programs to adapt specifically to address the power of social media content, rather than relying solely on traditional literacy approaches.