The impact of finfluencers, financial literacy, and behavioral factors on investment initiation

Information from the abstract

Financial influencers (“finfluencers”) have reshaped how Generation Z seeks investment advice, yet their behavioral consequences remain under-examined in emerging markets (Espeute & Preece, 2024). This study examines how finfluencers affect investment initiation among Generation Z in Thailand, focusing on the mediating role of trust and the effects of financial literacy, fear of missing out (FOMO), and parasocial relationships. A cross-sectional survey of 401 Generation Z investors was analyzed using logistic regression, negative binomial regression, and bootstrap-based mediation analysis. The frequency of following finfluencers significantly increases the likelihood of investing (odds ratio [OR] = 1.536, p < 0.001), and financial literacy amplifies investment propensity substantially (OR = 3.230, p < 0.001), consistent with its established role in sound financial decision-making (Lusardi & Mitchell, 2014). Unexpectedly, parasocial relationships show a significant negative effect (OR = 0.693, p < 0.05), while FOMO shows no significant direct effect. Trust fully mediates the relationship between influencer expertise/transparency and investment behavior. The findings inform financial literacy programs, influencer certification systems, and governance frameworks for digital financial communication. As the first such study in Thailand, it reveals trust-mediation mechanisms and unexpected parasocial effects that challenge Western-centric models.

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Related topics: FinTech, Crowdfunding, Digital Finance · Media Influence and Health · Impact of Technology on Adolescents