CONTRIBUTION OF STUDY
Based on detailed theoretical exposition, the present study will suggest a comprehensive conceptual model, which can offer a broader view on the adoption of online stock trading.
The proposed model places emphasis on the intention of the investors and their acceptance of technology. Furthermore, the influence of some crucial factors in influencing both the investor’s intention and behaviourTable 2. Summary of literature related to online trading and e-finance based on technology acceptance
| Context | Authors & Years | Constructs | Theory of Using |
| stock exchange | Joo Eng Lee et al. 2003 | Experience, security, social factors, Attitude, behavioral, government support, perceived, perplexity, subjective norm, information, quality | DTPB |
| stock exchange | (Siriluck, 2006) | Intention, behavior, attitude, securities, PEU, and PUS, Information quality, accessibility. | TAM |
| stock trading | Kim et al., 2004 | customers’ skills, price sensitivity, transaction capacity, repetition in transactions, intention, environmental conditions, subjective norm, attitude | TPB |
| Adoption online stock trading | Adela, Jerome, et al., 2001 | Intention, Attitude, PUS, PEU, Relative Advantage, SN, PBC, technology for trading, facilitating Condition, Research Facilitating, Conditions | DTPB |
| Online stock trading | Gopi et al., 2007 | BI, AT, SN, PBC | TPB |
| Online stock trading | (Michelle, 2005) | Skills of management and employers, computer knowledge, preparedness for adopt new technology. | TRA |
| Online stock trading | (Seongcheol 2000) | Perceived service quality, overall satisfaction, attitudinal loyalty, actual retention, price sensitivity, access capacity, and frequency of order. | TPB |
| Online stock trading | Ramayah et al., 2009) | BI, AT, SN, PUS, PEU, injunctive norm, descriptive norm. | TRA |
| Online stock trading | (Ming -Chi 2009a) | Perceived benefits, Attitude, PEU, PUS, PBC, SN. | TPB |
| Online stock trading | Thompson et al., 2004 | BI, Attitude, Relative Advantage, Trust, Compatibility, complexity, normative in flounce, facilitating conditions. | TRA |
| Online Banking | Chi-Shing, et al., 2007 | Attitude, PUS, PEU, Presided risk, innovativeness | TAM |
| Online Banking | Tan & Teo, 2000 | Intention, PBC, Attitude, SN, Self-efficacy, Risk., Government support, compatibility and trial ability | DTPB |
| Online Banking | Jeanette-Taft, 2007 | self-efficacy, prior training in electronic banking, perceived ease-of-use of electronic banking technology and locus of control | TAM |
| Online Banking | KhaliL, 2005 | Attitude, Relative advantage, Compatibility, Ease of use, Trial ability, self efficacy, PBC,SN, Intention | TPB |
| Internet Banking | Sohail et al., 2003 | Ease of use, Internet accessibility, Attitude, computer and Internet access costs, Trust in bank, Security concerns and convinces. | TAM |
| Online Financial | Jihyun-Lee, 2003 | Attitude, Intention, PBC, SN, Demographic variables | TPB |
| Online shopping | Vijayasarathy, 2004 | Usefulness, Compatibility, privacy security, normative, Intention, Attitude and self efficacy. | TAM |
| Online Banking | Guriting et al 2006 | PUS, Ease of use, Strong determinants of behavioral intention, computer self-efficacy and experience | TAM |
| Online Trading | Athiyaman 2002 | Attitude, Intention, social factors SN, and perceived behavioral control | TPB |
| E-commerce | Anol-Bhattacherjee, 2000) | Usefulness, Ease of use, interpersonal influences, External influence, Self efficacy, Facilitation conditions, attitude, SN | TPB |
| Online Banking | Ming chi-Lee 2009b | PUS, PEU, Risk, Perceived Benefit, Attitude, SN,PBC and Intention | TAM& TPB |
| Online stock trading | Lee & Kim, 2002) | Loyalty, Satisfaction, Convenience, Delight, firmness. | TPB |
| Online stock trading | Arwinder, et al., 2010 | Intention, Demographic variables (Age, experience, gender, education), attitude. | TPB |
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Table 2.
Continued| Context | Authors & Years | Constructs | Theory of Using |
| Online Shopping | Lina Zhou, et al., 2007 | Intention, normative belief, shopping orientation, shopping motivation, Personal traits risk. | TAM& TPB |
| E-Commerce | Davis, et al., 2000 | PUS,PEU, Intended inquiry, Intended purchase | TAM |
| Internet Purchasing | Joey-F-George, 2004 | Attitude, normative structure, Internet trustworthiness beliefs, unauthorized use beliefs, efficacy, PBC, SN and Intention. | TPB |
towards accepting the technology are identified. Experimental evidence was conducted in order to evaluate the relationship among the identified factors and online investor’s intention. Also, the interaction effects of these factors were recognized, with the analysis supporting prior related studies and offering further clarification on conflicting or contradicting findings.
The proposed model is based on the integration of the theory of planned behavior (TPB), technology acceptance model (TAM), and transaction cost theory (TCT). It advances the independent models by conceptualizing a single model, by identifying and modifying the relationships among their constructs. These constructs include the effect of trust perception based on TAM, and the economic value of e-commerce based on TCT and investor’s knowledge based on TPB. Also, the relationship between perceived usefulness and investors’ intention is proposed to be mediated by investor’s attitude. By proposing these constructs, the study has developed a more comprehensive model, which can help in conducting further empirical investigation on the adoption of online stock trading platform.
The proposed model is expected to offer a more comprehensive explanation on the behavioral aspect of online stock trading, by recognizing the multiple effects of the external behavioral beliefs. Accordingly, it will advance understanding on the factors that influence investors to adopt online trading service platform as well as their implications for the investors and e-commerce vendor. The model offers a practice oriented framework for assessing investor’s adoption of online platform and suggests the pertinent factors that are most likely to influence investor’s behavioural intention.
Online Stock Trading and How Trust is Perceived
Trust is one of the most important construct in any business and social relationship, where risk or uncertainty are prevalent (McKnight et al., 2002). To this end, Mayer and Davis (1995) argue that trust exists whenever a person is prepared to be vulnerable to another person. Trust is defined as a person’s willingness to exposure him/herself to risk in the hands of another person, based on the conviction that the other person would sincerely perform his/her role without supervision (Mayer et al., 1995).
Ming-Chi (2009b) demonstrated trust as an antecedent for the conduct of business and sustenance of online transaction by investors. In the absence of trust, business relationship is hampered. Trust is a fundamental factor in building healthy business relationship across diverse domain including stock exchange (Gefen et al., 2003). Consistent with TAM, the present study recognized trust as the set of belief which influence investor’s attitude towards adopting online stock trading. The concept of trust can be considered as the extent to which the investors believe in the adeptness of the online platform in the performance of required transactions as well as the extent to which the transactional information can be safeguarded.
Investors' Knowledge to Online Stock Investment
Scholars have confirmed the existence of a relationship between user’s prior knowledge and experience in online platform and his/her intention to adopt/accept online trading service (Konana et al., 2000; Zeithaml et al., 1983).
According to Li (1999) the actual use of online stock exchange trading application, requires the prior acquisition of knowledge related to the Internet or “Internet literacy.” Basically, two components critical to an investor’s adoption of online platform are his/ her knowledge about Internet trading and online platform (Konana et al., 2000). Accordingly, it is reasonable to expect that the investor will be more likely to use the online trading service platform, when he/she possesses sufficient knowledge on the electronic channels, stock market and trading transactions. Consequently, the construct for investors’ knowledge was operationalized as respondents’ knowledge about stock trading and electronic channels used for in conducting online stock trading.Economic Value for Online Stock Trading
Earlier research in e-finance established cost reduction, time saving and convenience as the main antecedents of customer’s intention to use online platform for transaction (Teo et al., 2004). These factors encompass the significant values which e-commerce offer to the customers (Keeney, 1999). Both cost reduction and time saving are the fundamental elements of transaction cost theory (TCT) in micro-economics, and constitute the economic value of e-finance.
This study offers an initial attempt to integrate TAM; transaction cost theory and service quality into a single research model, so as to empirically investigate the quantifiable advantages of cost reduction and time saving. Liang & Huang (1998) had proven that both variables are positively related to user’s satisfaction with online trading service and thus are important antecedents of consumer’s behaviour to use online platform. Consequently, this study aims to incorporate the effects of cost reduction and time saving, which constitute the economic value of e-finance, in addition to other antecedents of intention to adopt in the TAM model. Thus, the study offers an approach to identify and compare the different individual level antecedents for the adoption of technology. Succinctly, drawing from transaction cost theory (Williamson, 1975), this study suggest economic value of e-finance as a factor, which can influence the adoption of technology and hypothesize the model to test such effect.