The Effect of Interactive Social Media Platforms on Stock Market Participation During the COVID-19 Pandemic in Indonesia: Case Study in the Java Island

Abstract

This paper aims to examine the effect of learning from interactive social media platforms on stock market participation of domestic retail investors during the COVID-19 pandemic in the Java Island, Indonesia. The upsurge of retail investors and active social media users and also the detrimental effect of COVID-19 pandemic on Indonesia stock market became the urgent opportunity to increase the stock market participation. Analysing a survey data consists of 362 respondents, we find that the increase in number of social networking sites and online stock communities promote stock market participation. Furthermore, Instagram, Twitter, and YouTube are proven to increase stock market participation for social networking sites and for online stock communities, Telegram is also proven to increase stock market participation. On the other hand, there is no enough evidence that Facebook significantly promote stock market participation. Our findings suggest policymakers should consider social media platforms that promote stock market participation when developing financial education program. Therefore, it is hoped that the increase in stock market participation will lead to a better economic condition for Indonesia.