LETTERS: Advances in financial technology and digitalisation have been the most important tools in the current times.
The use of social media for getting the latest news has become common in recent times.
Public opinion has become critical information, especially in giving comments on many issues, primarily through social media platforms such as Twitter or YouTube.
Public opinion is the consumers' general view and perspective concerning specific topics, policies, products, brands and issues.
Many studies have found that people's opinions on some issues have essential significance to government policies and businesses.
They observed the community's views, the government and business people's overview of current policies, products and events.
Besides that, financial behaviour theory found that internal and external psychological factors influenced the fluctuations in buying and selling shares and explained investor decisions.
Research findings also found that human autobiographical memory had influenced issues related to investment decisions.
The development of social networking sites allows user data to be easily obtained and opens up space for behavioural science research.
Studies on the behavioural science theory on social networks show a relationship between digital currency and social media with traditional media organisations, such as newspapers and television, using social media channels to convey information to their viewers faster.
Twitter is the primary source of reference for users to find the latest news.
Previous studies have also shown that tweets are a reference for the latest news and are used to make predictions of digital assets (Bitcoin, Ethereum, Litecoin and so on), the stock market and even election results.
The user's behaviour towards something is measured by the user's feelings, whether positive, negative or neutral.
Digitalisation has shown the role of data mining and sentiment analysis in evaluating the effectiveness of consumer opinion on social media.
A study conducted by Paul Tetlock in 2007 was the pioneer study on the relationship between sentiment on social media and the volatility of financial market prices.
His research, using a popular Wall Street Journal column, found that high pessimistic media can reduce stock market prices and vice versa.
There are also other researchers who studied Twitter and Google Trends users' opinions and perceptions to influence investment decisions on digital assets or cryptocurrencies.
Thus, it is clearly shown that social media has been the platform for circulating or giving the latest news and has been the most crucial platform for investors or users to make investment decisions on stock and digital assets markets.
ASSOCIATE PROFESSOR DR FATHIN FAIZAH SAID
Centre for Sustainable and Inclusive Development Studies
Faculty of Economics and Management
Universiti Kebangsaan Malaysia
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times
