The rise of social media has transformed Key Opinion Leaders (KOLs) into significant influencers of financial markets. This study examines how KOLs on platforms like Twitter shape investor sentiment and impact stock market performance. The research employs a mixed-methods approach, analyzing social media data and market indicators to map the relationship between KOL statements and market reactions based on the real cases. It explores the psychological mechanisms, such as herding behavior, that amplify these effects. Findings suggest that KOLs can trigger rapid, short-term market movements, particularly among retail investors, leading to increased volatility and potential market inefficiencies. However, the long-term impact of KOL influence on market fundamentals remains less clear. This research highlights the need for updated regulatory frameworks and improved financial literacy to address the challenges posed by social medias growing role in financial markets. By addressing these issues, both regulators and investors can better navigate the increasingly complex landscape shaped by social media-driven financial activity.
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