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Social media engagement and retail investors’ short-termism

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  • Kim, Hohyun

Abstract

This study examines whether and how social media use influences retail investors’ short-termism in investment. Using data from the 2021 National Financial Capability Study, social media use to obtain investment information is found to be associated with short-termism. The relationship is supported by various robustness tests. The effect is particularly pronounced among younger investors and those exhibiting overconfidence in investment knowledge. These findings identify social media as a key behavioral channel shaping investor time horizons, with implications for investment behavior, market dynamics, and policy design.

Suggested Citation

  • Kim, Hohyun, 2025. "Social media engagement and retail investors’ short-termism," Finance Research Letters, Elsevier, vol. 85(PE).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pe:s154461232501503x
    DOI: 10.1016/j.frl.2025.108249
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    References listed on IDEAS

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    Cited by:

    1. Koutmos, Dimitrios & Gunay, Samet & Payne, James E., 2025. "Market expectations and the holding behaviors of bitcoin whales, dolphins, and minnows," Finance Research Letters, Elsevier, vol. 86(PE).

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    More about this item

    Keywords

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    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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