HOW FRAMING AFFECT AN INDIVIDUAL FINANCIAL DECISION MAKING
Abstract
This study investigates the impact of framing, specifically gain versus loss and emotional framing, on individuals' financial risk perception and decision-making. Drawing on Prospect Theory and principles of behavioural economics, the research examines how the presentation of financial choices influences individuals' tendencies to adopt risk-averse or risk-seeking behaviours. A structured survey was conducted with 80 participants, and the data were analysed using descriptive statistics, chi-square tests, t-tests, ANOVA, and regression. The results show that participants are significantly more risk-seeking when financial decisions are framed as losses or when the emotional tone is negative. In contrast, demographic variables such as age, gender, and education level had minimal influence. These findings highlight the psychological effects of framing and underscore the need for ethical financial communication and improved decision-making literacy.
FINANCIAL BEHAVIOURS IN THE SOCIAL MEDIA ERA: A SECONADARY STUDY ON INFLUNENCER MARKETING
Abstract
The rise of financial influencers, or "influencer’s," has fundamentally transformed financial communication and investment behaviour, particularly among Gen Z and Millennials. This secondary study synthesizes research from behavioural finance, psychology, law, and marketing to analyse this new paradigm. Finfluencers' persuasive power stems from emotional and social-psychological mechanisms, such as cultivating Para social relationships and leveraging community validation. These interactions amplify inherent cognitive biases like herding, anchoring, and the fear of missing out (FOMO), often leading to impulsive and speculative financial decisions. While finfluencers can democratize access to financial knowledge and build supportive communities, their unregulated status poses significant risks. This includes contributing to market volatility, spreading misinformation, and causing financial harm to inexperienced investors. The analysis reveals that existing legal and regulatory frameworks, designed for traditional financial advice, are ill-equipped to address the subtle nature of social-media-driven influence. The conclusion is that the Finfluencers phenomenon is a complex, technologically mediated ecosystem that challenges the very foundation of financial market theory. Addressing these challenges requires a multi-faceted approach, including updating regulations to account for psychological manipulation, enhancing consumer education, and establishing new ethical standards for digital financial services to protect individual autonomy and financial well-being.
Beyond the Hype: A Conditional Framework for Cryptocurrency Contagion and Portfolio Risk
Abstract
This report introduces a novel conditional framework to address a critical gap in the existing
financial literature: the failure to account for the dynamic, state-dependent nature of
cryptocurrency market contagion. The analysis moves beyond a static view of cryptocurrencies
as either a "safe haven" or a correlated risk asset, arguing instead that their behaviour is highly
sensitive to traditional market conditions. A core finding is that crypto-market dynamics are
driven by a disproportionately large "noise component" and the predictable behaviour of
uninformed retail investors. This structural immaturity creates a fertile environment for
unidirectional spillover effects from traditional markets to intensify during periods of crisis.
The report provides a robust, meta-analytical conclusion that reinforces this perspective.
Building on these findings, the paper offers actionable recommendations for key stakeholders,
including a conditional portfolio strategy for investors and a concrete regulatory roadmap for
policymakers, thereby distinguishing its contribution from a standard academic review.