The Effect of Information Sources on Trust and Investment: Evidence from Economic Experimentation

Abstract

This study aims to provide evidence from an economic experiment that explores the effect of different financial information sources on people’s trust and investment decisions. Research participants consisted of 128 individuals aged between 18 and 30. An experiment design divided participants into three treatment groups and a control group. The participants in each treatment group were assigned to receive different presentations of financial information, namely, an official styled fact sheet (T1), a post on social media (T2), and in-person advising (T3). The study measured the level of participants’ trust and investment in each treatment and compared it with the control group. The findings demonstrated that participants in T1 trusted their information and made significant investment, while those in T2 did not trust and invest. The participants in T3 trusted their information but did not decide to invest. These results suggest that traditional channels remain essential in communicating financial information, and financial institutions must take this into account when considering their communication strategies.