Technological advancement has played a pivotal role in shaping financial behaviors, including stock market participation (SMP). However, the significance of digital inclusion in altering the significance of social inclusion on SMP is less tapped. Furthermore, this study aims to assess the moderating role of social media usage and challenges in relation to digital inclusion and SMP.
A total of 407 investors with an active interest in the stock market in Karnataka, India, were gathered through a structured questionnaire using a snowball sampling technique. Further, to comprehend the disparity in stock market participation among varied profiles, an independent sample t-test and one-way ANOVA were carried out. Confirmatory factor analysis (CFA) was applied to validate the measurement model, and structural equation modeling (SEM) was then used to test the mediation through digital inclusion.
The results indicated that socially included investors tend to participate more in the stock market directly, and this impact is significantly mediated by digital inclusion. In case of moderating impact, social media usage strengthens and challenges weaken the impact of digital inclusion on stock market participation.
As the research highlighted the strong intervening influence of digital inclusion between social inclusion and stock market participation, financial advisors, Policymakers and financial institutions, App and platform designers, and regulators play a vital role in providing transparent and adequate financial information through digital platforms.
Numerous studies have addressed the relevance of social aspects on stock market participation. Yet, studies have rarely considered digital inclusion as a mediator altogether to assess its impact on SMP.
