THE PHENOMENON OF SOCIAL MEDIA AND INFLUENCERS IN FINANCIAL MARKETS: A REVIEW OF SCIENTIFIC RESEARCH

Abstract

The transformation of information dissemination, driven by the growth of social media in recent decades, has encouraged intensive development of scientific research. To reveal the mechanisms of the impact of social networks on financial markets, a systematic analysis of scientific publications is applied, supplemented by elements of bibliometric analysis. Over time, academic attention has shifted from a generalized assessment of the role of social media to deeper interpretations of investor behavior and sentiments as well as research on social influence factors. Analysis of scientific research has revealed that social media is a dominant means of information dissemination and has a more significant influence on financial markets than traditional media, and influencers are gradually taking over the role of traditional financial analysts. The influence of social media content is manifested through certain mechanisms that not only determine short-term changes in investment returns, but also have a significant impact on the behavior of market participants, investment volumes and market volatility, especially during uncertainty periods. Positive sentiments on social networks cause short-term market reactions, while negative emotions have a stronger long-term effect. The emergence of the influencing phenomenon highlights the threats of disinformation, manipulation, fraud, and the importance of financial literacy and regulation. These statements transform the understanding of classical financial theories and contribute to the development of behavioral finance theory. Understanding the phenomenon of social media is important for investors, policymakers, and regulators seeking to manage the constantly changing information environment. Social media is becoming an integral part of the financial markets, requiring further interdisciplinary research.