Impact of Social Media-Induced Cognitive Biases on Millennial Investment Behavior: The Moderating Role of Perceived Risk

Abstract: The article argues that millennial investment decision making is driven by generational bias, an investment bias shared by millennials. In the conventional financial framework, individuals are assumed to make decisions based on logic and reason. The research seeks to examine the influence of moderating factor of perceived risk in the connection between cognitive distortions and investment decisions. Investment managers can comprehend financial abnormalities at the population level by using generational theories of behavioral biases. According to the survey, managers should provide millennials with investment options that assist them in avoiding the risk of missing opportunities. To attract millennials interest in socially responsible investing managers must build a reputation for corporate social responsibility. Although cognitive biases were modelled as second-order factors in investor decision-making, data analysis revealed a stronger link between decision making and outcomes. Keywords: Cognitive, Bias, Behavioral biases, Investment intention, Millennials JEL Classification Number: G41, D83