Influencer and digital investment decision : the mechanism of financial knowledge and artificial intelligence literacy

Chan, Sze Min and Koay, Zhi Xuan and Lin, Lai Kee and Yap, Wan Yi (2026) Influencer and digital investment decision : the mechanism of financial knowledge and artificial intelligence literacy. Final Year Project, UTAR.

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Abstract

The rise of social media has increased exposure to financial influencers (finfluencers) who provide investment-related information. At the same time, the rapid development of artificial intelligence (AI) tools has transformed decision-making processes in various sectors, including digital investments. This study examines how influencer characteristics, specifically exposure, trustworthiness, and credibility influence digital investment decisions among Malaysian investors. Financial knowledge is proposed as a mediating variable, while AI literacy is examined as a moderating variable. This study is grounded in the Theory of Planned Behaviour (TPB) and Social Cognitive Theory (SCT). The data consists of 385 Malaysian adults aged 20 to 49 years and analyzed using the PLS-SEM. The results indicate that influencer exposure significantly influences digital investment decisions, whereas trustworthiness and credibility do not have significant direct effects. Financial knowledge significantly mediates the relationship between influencer characteristics and digital investment decisions, and a significant relationship between financial knowledge and digital investment decisions is also observed. However, AI literacy does not significantly moderate the relationship between financial knowledge and digital investment decisions. These findings suggest that knowledge development plays a more important role than technological literacy in shaping investment behaviour. The study provides practical implications for investors, financial institutions, and regulators in improving financial education and managing social media investment information.

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