Invest
How ‘gamer investors’ are pushing a new wave of social responsibility
A new generation of younger retail investors are pushing a new social movement, yielding a distributive impact on the markets, most notably through the GameStop saga, two researchers have revealed.

How ‘gamer investors’ are pushing a new wave of social responsibility
A new generation of younger retail investors are pushing a new social movement, yielding a distributive impact on the markets, most notably through the GameStop saga, two researchers have revealed.

A new report drafted by the Monash University and Louisiana State University has revealed the impacts Millennial and Gen Z retail investors – adequately termed the wireless investors – are having on corporate governance by driving a social movement with disruptive effects.
These young investors, who blame the Boomers for a variety of social and environmental problems, are using social media, apps and online forums – like the Reddit subreddits r/WallStreetBets and r/amcstock – to coordinate their actions in a gaming-like fashion and obtain unprecedented results.
But not only are the wireless investors choosing to invest their money directly, overlooking the brokers, they are more inclined to use the voting powers yielded by their investments, the research has shown.
According to Professor Christina Sautter from Louisiana State University, “Unlike in the past when only approximately 30 per cent of retail investors on average have exercised their voting rights, these retail investors appear more inclined to vote.”
“For example, with AMC, retail shareholders are discussing on social media and in online forums how they intend to vote their shares at AMC’s upcoming July shareholders’ meeting, and they are encouraging other retail shareholders to vote their shares as well.”
As such, with Millennials set to inherit up to $68 trillion over the next two decades, Dr Gramitto Ricci, lecturer in the Department of Business Law and Taxation at Monash Business School, explained that wireless investors may be able to push the button to shift corporate behaviour, possibly reducing short-term thinking and increasing corporate focus on ESG goals.
The GameStop saga, which saw wireless investors take aim at Wall Street hedge funds and the global financial hierarchy, was a great example of this power.
Such actions possibly drove the 3,000 per cent surge in US GameStop shares in January 2021, while inflicting losses of almost $20 billion on the hedge funds and other short-sellers.
But the movement is only set to grow, Dr Ricci believes, noting that by engaging with corporate governance, wireless investors are likely to attract other investors by their achievements. This could, in turn, result in the removal of the investing and corporate governance power out of the hands of Wall Street and into the hands of ordinary people.
“More and more people will likely withdraw their money from institutional investors and buy corporate shares directly. This significantly increases the probability that the voice of the ordinary person, expressed via voting, plays a relevant role in corporate governance,” Dr Ricci said.
“If the movement gains traction, investors who initially perceived themselves as powerless with respect to ESG goals would finally realise that their votes count and join the effort.”
Dr Ricci further explained, “This would snowball into a collective power to steer corporations toward ESG goals. Wireless investors and other early adopters will be followed by other retail investors and possibly by institutional investors as well.”
Moreover, Dr Ricci and Professor Sautter believe ESG voting will likely become a new social norm.
“With a plot twist, the paradigm shift that makes corporations serve the interests of a broader range of stakeholders would come at the hands of shareholders,” Dr Ricci concluded.
About the author

About the author


Stock market
Markets succumb to jitters as US CPI maintains strength
Following a slight drop of 0.2 per cent in the United States inflation rate, the latest US April consumer price index (CPI) data indicating higher than expected figures has triggered a fall in the US ...Read more

Stock market
Qantas forecasts return to profitability, announces ultra-long flights
Qantas expects its net debt to condense from $5.5 billion at the end of 2021 to $4.5 billion at the end of April following a period of sustained recovery in travel demand. ...Read more

Stock market
Headwinds to outnumber tailwinds in 2022
Headwinds are likely to outnumber tailwinds in 2022 as the world continues to readjust to the post-pandemic era, one expert has said. ...Read more

Stock market
Aussies can now net frequent flyer points by trading stocks
Superhero is looking to sweeten the deal for traders who are excited for the return of international travel. ...Read more

Stock market
Facebook debuts new name
Zuck gets meta. ...Read more

Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more

Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more

Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Stock market
Markets succumb to jitters as US CPI maintains strength
Following a slight drop of 0.2 per cent in the United States inflation rate, the latest US April consumer price index (CPI) data indicating higher than expected figures has triggered a fall in the US ...Read more

Stock market
Qantas forecasts return to profitability, announces ultra-long flights
Qantas expects its net debt to condense from $5.5 billion at the end of 2021 to $4.5 billion at the end of April following a period of sustained recovery in travel demand. ...Read more

Stock market
Headwinds to outnumber tailwinds in 2022
Headwinds are likely to outnumber tailwinds in 2022 as the world continues to readjust to the post-pandemic era, one expert has said. ...Read more

Stock market
Aussies can now net frequent flyer points by trading stocks
Superhero is looking to sweeten the deal for traders who are excited for the return of international travel. ...Read more

Stock market
Facebook debuts new name
Zuck gets meta. ...Read more

Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more

Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more

Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more