Financial blogging, retail investor sentiment and their participation in the securities market: Evidence from emerging and frontier markets

Abstract

The rapid growth of digital media has changed how retail investors behave, especially in emerging and frontier markets. This systematic review examined how financial blogging shapes investor sentiment and its implications for retail investors' participation in securities market. Following the PRISMA guidelines, this review analysed 28 empirical and theoretical studies published between 2016 and 2025 from developed, emerging, and frontier markets. The review focused on three main themes: the intermediary role of financial blogs, the influence of blog information on investor sentiment, and the effect of sentiment (positive or negative) on retail securities trading activity. Empirical evidence indicates that the tone, content, and frequency of financial blogs significantly shape retail investor sentiment toward securities market opportunities. Further, positive sentiment increases the likelihood of retail investors purchasing securities, whereas negative sentiment reduces such likelihood. Additionally, while financial blogging increases access to securities market information, it may also amplify behavioural biases among retail investors. The effect of financial blogs on sentiment formation and subsequent retail investment behaviour is more pronounced in emerging and frontier markets because of information gaps, insufficient capital market reach, and a significant number of retail investors. Even with these findings, there are still gaps in quantitative sentiment analysis, standardised investor participation measurement, and comparisons across markets. Additionally, there is a need for studies examining the role of financial blogging within the broader digital financial ecosystem. Nevertheless, these findings provide practical and theoretical insights into retail investor behaviour in an increasingly digital and interconnected securities market landscape.