In recent years, retail participation in Indonesia's capital market has grown at an unprecedented rate, mainly driven by Generation Z investors. This digital-native group mainly sources information from social media, leading to the rise of ‘financial influencers’ (finfluencers) as a key source of financial advice. The advice given by finfluencers on social media might represent a new way to improve young adults' financial literacy and support their investment decisions. This trend poses significant challenges especially regarding the potential for decision biases caused by finfluencers rather than fundamental analysis. However, research on the impact of finfluencers is limited, as they are relatively new to social media. Therefore, this study aims to explore the gap between financial influencers and investing intention. This study constructs elements mentioned in Stimulus-Organism-Response Theory by Mehrabian and Russell (1974) as the foundation of this study. A quantitative approach was conducted focusing on the Gen Z population in Indonesia. Multiple Regression Analysis was used to analyze the 221 samples in this study. The study found that all factors in finfluencers’ social media activities have a positive and significant impact on investors towards finfluencers’ attractiveness, expertise, and trustworthiness. Elements in source credibility like expertise and trustworthiness also have a positive and significant impact towards investing intention, while attractiveness of finfluencers do not have a significant impact towards investing intention. These findings offer valuable insight for finfluencers to understand the factors that influence investing intention.

Authors:
Franky Kangharnando, National Quemoy University, Taiwan
Edward Edward, National Quemoy University, Taiwan
Felicia M. Novianne, National Quemoy University, Taiwan
Yu Fang Yen, National Quemoy University, Taiwan

About the Presenter(s)
Franky Kangharnando is currently a Master of Business Administration student in National Quemoy University, Taiwan. Franky has a great interest in finance field and currently doing research regarding the investors behavior in Indonesia.

Connect on Linkedin
https://www.linkedin.com/in/frankykangharnando/

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