Analysis on Sales Appropriateness for Finfluencer

Abstract

Have you ever been tempted to make an investment in the digital age due to the influence of a convincing financial influencers on platforms like YouTube or TikTok? Finfluencers use TikTok and YouTube to democratise financial knowledge by sharing relatable and engaging content about budgeting, investing, and more. Nevertheless, apprehensions over the trustworthiness, expertise, and possible spread of false information have emerged, leading regulatory authorities to tackle the ambiguous regulatory aspects related to Finfluencers. The principal-agent dilemma, which is inherent in the connection between Finfluencers and consumers, highlights the significance of transparency and disclosure in financial marketing as a means to reduce risks for investors.

Keywords: FinFluencer, Principal-Agent Theory, Regulotary

JEL Classification: G02, G11, G18