The impact of peer influence on cryptocurrency participation: The moderating role of perceived risks and rewards among financial management students at Pamantasan ng Lungsod ng Maynila

ABSTRACT: Cryptocurrency has emerged as a transformative financial innovation, especially appealing to young investors for its decentralization, high return potential, and digital accessibility. In the Philippines, this trend is evident among students in business-related programs, where exposure to peer influence and social media significantly impacts financial decisions. However, the extent to which peer influence drives cryptocurrency participation, as well as how this relationship is affected by students perceptions of risks and rewards, remains underexplored. This study investigates how peer influence affects cryptocurrency participation among BSBA Financial Management students at Pamantasan ng Lungsod ng Maynila (PLM), and whether perceived risks and rewards moderate this relationship. Grounded in the Theory of Planned Behavior and Prospect Theory, the research examines subjective norms and behavioral perceptions in shaping investment behavior within a high-risk financial context. A quantitative descriptive-correlational design was used, with 138 students randomly selected from a population of 427. Data were collected through a structured online questionnaire using Likert-scale items to assess peer influence, cryptocurrency participation, and perceived risks and rewards. Statistical analysis, including regression and moderation testing via SPSS, was employed. Reliability tests showed strong internal consistency (Cronbach’s alpha: 0.837-0.959). Findings indicate that peer influence significantly predicts cryptocurrency participation, supporting the first hypothesis. Students are more likely to invest when exposed to peer conversations, endorsements, or social media that promote digital asset trading. However, perceived risks and rewards did not significantly moderate this relationship, leading to the rejection of the second hypothesis. This suggests students prioritize social validation over rational evaluation of investment risks. The study concludes that peer influence plays a dominant role in students investment behavior, overshadowing risk-reward considerations. It recommends incorporating peer influence education into university financial literacy programs and calls for collaboration between institutions and regulatory bodies to foster informed, rational investment decisions among youth.

Filipiniana