Use of social networks in stock investment
International Journal of Bank Marketing
ISSN: 0265-2323
Article publication date: 21 September 2021
Issue publication date: 1 February 2022
Abstract
Purpose
Drawing on the literature regarding the social network and stock investment, this paper aims to focus on the use of the social network on stock ownership decisions at individual levels. This paper also attempts to shed light on potential mediators of the relationship between the social network and stock ownership.
Design/methodology/approach
To determine the relationship between stock ownership and using the social network, logistic regression was used. In order to isolate the effect of using hs on stock ownership, a decomposing method was adopted.
Findings
The findings provide evidence of the positive contribution of the use of social networks in stock ownership. Personal characteristics, such as household net worth, homeownership, education level and risk tolerance, may play a vital role in influencing individuals' decisions regarding stock investment. In addition, this study contributes to our understanding of income's mediating role in stock investment decisions.
Originality/value
First, the authors contribute theoretically by drawing from the assumptions of social networking contagion theory, social influence theory, and social capital theory. Second, we explored potential mediators of the relationship between the social network and stock ownership. Third, this study complements the literature in incorporating the social network in business, financial professionals to be exact.
Keywords
Citation
Lei, S. and Ramos Salazar, L. (2022), "Use of social networks in stock investment", International Journal of Bank Marketing, Vol. 40 No. 1, pp. 110-127. https://doi.org/10.1108/IJBM-04-2021-0158
Publisher
:Emerald Publishing Limited
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