A Study on Factors involving the Usage of Social Media on Investment Decision Making with Reference to Investors of Selected Stock Broking Houses in Coimbatore
Objectives: Nowadays, with the rise of social media, there is possible to get a faster, more talented way of gathering data to persuade investors’ judgements. Hence, this study is trying to analyse the factors, namely Company news, Industry performance, Market updates, Economic factors and Investor sentiment which persuading the social media usage among the equity investors in Coimbatore District, Tami Nadu, India.
Research Methods: For this study, 100 investors who invest in the share market are selected by using stratified proportionate random sampling method. Self designed questionnaire is used to collect the primary data. The collected data has been evaluated with Percentage Analysis, Weighted Average Rank Analysis, Multiple Response Analysis, Correlation Analysis and Multiple Linear Regression Analysis.
Findings/Results: Out of the five independent variables, Company News, Economic Factors and Investor Sentiment have much influenced the dependent variable Investment decision making as it is statistically significant at the 5% level. Finally, the result of the study shows that social media helps to acquire timely information and gain knowledge which helps to formulate better decision by the investors.
Conclusion/Suggestions: Stock broking firms should take appropriate steps to improve the security system of social media to make investors use it effectively. This study helps the stock broker to make the valuable communication with investors, implementation of innovative technology and to promote other financial products.
- Aurangzeb. Factors affecting performance of stock market: evidence from south Asian countries. International Journal of Academic Research in Business and Social Sciences. 2012; 2(9), 1-15.
- Madhavi Dhole. Analytical study of four automobile sector companies in price movement of shares. International Journal of Application or Innovation in Engineering & Management. 2013; 2(6), 131-141.
- Q. Li, T. Wang, P. Li, L. Liu, Q. Gong, Y. Chen. The effect of news and public mood on stock movements. Information Sciences. 2014; 278, 826-840.
- K.S. Venkateswara, V. Rama Devi. Social media in financial services – a theoretical perspective. Procedia Economics and Finance. 2014; 11, 306-313.
- S. Islam, M. Abdus Salam, M. Hasan. Factors affecting the stock price movement: a case study on dhaka stock exchange. International Journal of Business and Management. 2015; 10(10), 253-262.
- F. Khan, F. Afrin, M. Arifur Rahman. Factors influencing investors’ decisions in stock market investment in Bangladesh [A Study on Khulna City]. Journal of Finance and Accounting. 2015; 3(6), 198-204.
- A. Kumudha, S. Thilaga. A study on the impact of social media on millennial consumers’ decision making process. International Journal of Informative and Futuristic Research. 2016; 3(8), 2910-2917.
- S.V. Anusakumar, R. Ali, H. Chee Wooi. The effect of investor sentiment on stock returns: Insight from emerging Asian markets. Asian Academy of Management Journal of Accounting and Finance. 2017; 13(1), 159-178.
Abstract Views: 3
PDF Views: 3