INFLUENCE OF FINANCIAL INFLUENCERS ON INVESTMENT CHOICES: THE MEDIATING ROLE OF TRUST AND FINANCIAL LITERACY

Abstract

The rapid growth of social media has transformed the financial information ecosystem, giving rise to financial influencers who significantly shape retail investors’ perceptions and decision-making. This study examines the influence of financial influencers on individual investment choices, with a particular focus on the mediating roles of trust and financial literacy. Drawing on Source Credibility Theory and Behavioral Finance principles, the study proposes that exposure to financial influencers affects investment decisions both directly and indirectly, through the development of trust and the enhancement of financial literacy. Primary data were collected from retail investors using a structured questionnaire based on a five-point Likert scale. The study employs reliability analysis, correlation analysis, regression analysis, and mediation analysis using the PROCESS macro in SPSS to test the proposed relationships. The findings are expected to reveal that trust in financial influencers significantly mediates the relationship between influencer exposure and investment choice, while financial literacy further strengthens informed decision-making. The results contribute to the growing literature on digital financial communication, investor behavior, and social media influence. The study offers practical implications for regulators, financial educators, and investors by highlighting the importance of credibility and literacy in mitigating irrational investment behavior driven by online influence.