The role of social-media in shaping financial market dynamics: key insights and effects

Purpose This study examines the role of social media (SM) in shaping financial market (FM) dynamics, focusing on its influence on investor behavior, market sentiment, and volatility. It aims to map the intellectual landscape, identify research trends, and highlight gaps through a comprehensive review. Design/methodology/approach A bibliometric and systematic literature review was conducted using Web of Science and Scopus, analyzing 217 articles from 2005–2024. The methodology followed PRISMA guidelines, integrating bibliometric mapping with VOSviewer, thematic clustering, and qualitative content analysis to address four research questions on publication trends, keyword patterns, and thematic clusters. Findings The analysis reveals exponential research growth since 2017, with three thematic clusters: (1) stock market prediction using SM sentiment and machine learning, (2) SM’s broader influence on market volatility and investor behavior, and (3) text mining for cryptocurrency volatility. Emerging themes include disinformation, behavioral finance, and global market perspectives. Originality/value This study provides the first integrative bibliometric and systematic review of SM’s impact on FMs, synthesizing fragmented literature across finance, economics, and computer science. It identifies critical gaps, such as disinformation and emerging market studies, offering a roadmap for future research and practical applications.