Socially Responsible Investing: Is Social Media an Influencer?

Mindy Joseph (), Congrong Ouyang and Joanne DeVille
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Mindy Joseph: Department of Financial Planning, College of Health and Human Sciences, Kansas State University, Manhattan, KS 66502, USA
Congrong Ouyang: Department of Agricultural Economics, Texas A&M University, 600 John Kimbrough Blvd, TAMU 2124, College Station, TX 77843, USA
Joanne DeVille: Department of Financial Planning, College of Health and Human Sciences, Kansas State University, Manhattan, KS 66502, USA

JRFM, 2025, vol. 18, issue 7, 1-16

Abstract: As digital connectivity transforms financial decision-making, this study offers one of the first empirical investigations into the relationship between social media use and socially responsible investing (SRI). Using data from the 2021 National Financial Capability Study, multinomial regression analysis was used to explore whether people who rely on social media for investment decisions were more likely to invest in ways that reflect their values. The results show that investors who use social media for investment information are more likely to value being socially responsible as an important reason for investing. Younger, less experienced, and more risk-tolerant investors were especially likely to follow SRI strategies, and certain platforms like Twitter were more associated with SRI interest than others. These findings suggest that social media is not just a platform for sharing information; it may also shape how people think about investing and the role their money can play in making a societal difference. As online platforms continue to influence financial behavior, understanding their impact on values-based investing becomes increasingly important. This research contributes novel insights to the emerging intersection of social media, behavioral finance, and values-driven investing.

Keywords: social media; socially responsible investing; herding behavior; confirmation bias (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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