Can and do professional investment advisors adjust to the threat of disintermediation caused by social media?
Research Seminar by Dr. Nadia Massoud
Date: 7 April 2025 11:40-12:40
Location: Corvinus University of Budapest, Building E, Institute of Finance, room E.279.1.
The rise of finance-oriented social media platforms like StockTwits empowers retail investors to sidestep professionals for financial guidance. Our investigation into disintermediation in the investment advice industry via StockTwits discovers that professionals (“investment advisors”) actively reclaim control by establishing a robust presence on this platform. Surprisingly, despite a 366% higher likelihood of viral messages from registered investment advisors than that from regular StockTwits members, professionals have scaled back their network activities since early 2017. This reduction is attributable to regulatory constraints enforced by the SEC, signaling a noteworthy shift toward financial disintermediation propelled more by regulatory bodies than social media itself.
Joint work with Nazanin Babolmorad and Peter Bossaerts.
Please note that this Microsoft Teams link is only in case you are unable to join the seminar, however, the meeting will be generally held offline.