The influence of social media financial influencers on Gen Z investment decisions

Abstract

In emerging markets, many Generation Z individuals increasingly rely on social media financial influencers for investment advice, creating a risk of uninformed and potentially harmful financial decisions. However, there is limited empirical evidence on how these influencers shape Gen Z’s investment behaviour, particularly in African contexts. This study examines the influence of psychological, relational, and platform-related factors on Gen Z’s investment decisions. A quantitative cross-sectional design was employed using data from 364 digitally active Gen Z respondents in Tanzania. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to test the relationships among perceived credibility, engagement frequency, platform trust, perceived similarity, social proof, and fear of missing out (FOMO). The findings indicate that engagement frequency, perceived credibility, platform trust, and FOMO significantly influence investment decisions, while perceived similarity has a weaker but significant effect. Social proof cues were found to be insignificant. The study recommends strengthening ethical influencer practices to support informed investment decisions among Gen Z in emerging markets.

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Keywords

Platform trust
,
Perceived credibility
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Engagement frequency
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Investment behaviour
,
FOMO

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DOI: https://doi.org/10.58548/2026jciaf11....
Submitted:
Published: June 19, 2026