Love of Money, FOMO, and Investment: The Role of Social Media Influencers

Abstract

This study examines the influence of Love of Money (LoM), Fear of Missing Out (FOMO), and the moderating role of social media influencers (SMIs) on investment decision. Given the recent surge in capital market participation by millennials and Gen Z, this research aims to identify behavioral factors driving investment decisions. Utilizing a quantitative survey, findings indicate that FOMO significantly impacts investment intentions (p=0.004). Conversely, Love of Money (p=0.430) and the direct influence of SMIs (p=0.712) were not statistically significant predictors. Crucially, a significant interaction was found between SMIs and FOMO (p=0.000), demonstrating that SMIs substantially amplify FOMO's effect on investment intentions. No significant interaction was observed between SMIs and LoM (p=0.204). These results highlight FOMO's potent role, especially when amplified by social media exposure, in shaping young investor behavior. The study recommends enhanced financial literacy and ethical conduct among SMIs to encourage prudent investment practices, mitigating risks from FOMO-driven decisions.