Social Media's Role in Shaping Equity Investment Decisions: A Demographic and Behavioural Analysis of Investors in Banaskantha, Gujarat

Abstract

In the contemporary financial landscape, social media platforms have emerged as powerful catalysts for stock market trends, transforming financial information into a ubiquitous social commodity. This study conducts a demographic and behavioural analysis of retail equity investors in the Banaskantha district of Gujarat to understand how digital exposure modifies decision-making. Utilising a quantitative descriptive research design with a sample of 100 respondents (N=100), the study employed a structured survey instrument validated with a Cronbach’s Alpha of 0.918, indicating excellent internal consistency. Statistical analysis through Chi-Square tests revealed a well-balanced occupational distribution (p=0.512) but a statistically significant preference for "Moderate" (48%) and "Aggressive" (33%) investment styles (p=0.002). Furthermore, the study examined behavioural constructs such as Fear of Missing Out (FOMO), herd mentality, and finfluencer trust. ANOVA results indicated no statistically significant variance in trust between verified social media personalities and traditional news media (p=0.116). However, a marginal trend (p=0.078) suggests a growing recognition of social media’s power to influence price movements. These findings culminate in the "finfluencer paradox": while social media triggers emotional reactivity and peer influence, regional investors in Banaskantha maintain a sophisticated level of caution, frequently cross-checking digital recommendations with official regulatory filings. This research establishes an empirical baseline for understanding how regional Indian investors balance modern digital pressures with traditional risk management.