The Impact of Mobile Trading Technology on Individual Investors' Trading Behaviors: the "Two-Edged Sword" effect
نویسندگان
چکیده
As the evolvement of financial trading technology with wireless network infrastructure, mobile trading technology has emerged to meet investors’ requirements to access the financial markets regardless of time and place. However, being like a “two-edged sword”, mobile trading technology may affect investors’ irrational trading behaviors negatively. This research investigates both the positive and negative effect of mobile trading technology on investors’ behaviors including rational disciplined trading and irrational overtrading. According to the nature of mobile trading technology, this study suggests mobile trading platform improves investors trading perceptions in terms of perceived efficiency and perceived informativeness. Then, the influence of mobile trading platform usage on investors’ disciplined trading is examined. Meanwhile, from the perspectives of behavioral finance and impulse control disorder, the study explores how mobile trading technology impacts investors’ overtrading with the presence of cognitive biases or psychiatric disorder. In the future work, a survey will be conducted to test the hypotheses.
منابع مشابه
Will Stock Investors Use Mobile Stock Trading? a Benefit-risk Assessment Based on a Modified Utaut Model
The purpose of this study is to investigate the determinants of stock investors’ intention towards using mobile stock trading. Based on a modified UTAUT (unified theory of acceptance and use of technology) with risk perceptions, a comprehensive research model was proposed. An empirical survey with a valid sample of 329 stock investors was conducted in Taiwan to test the research model. The anal...
متن کاملCosts of Stock Trading by Study on Commitment Components
In this paper, we are examining the relationship between stock trading costs and commitment components and find both abnormal and normal commitments associated with these costs are associated. Moreover, stock trading costs have a greater influence by both abnormal and normal negative commitments more than positive commitments. Further analysis has shown that in general, investors are unable to ...
متن کاملAn Analysis of the Stock Price Impact on the TSE and Accrual Management
This study examined the role of positive and negative discretionary accrual management in the stock price impact. A sample of 66 firms listed in Tehran Stock Exchange was selected for a ten-year period (2008-2017). Accrual management was found to lead to significant changes in stock prices, and uninformed investors incur trading costs caused by the stock price impact. The results showed two key...
متن کاملIs It Necessary to Restrict Forex Financial Trading? A Modified Model
The Central Bank of Iran banned online currency trading through Forex brokers in November 2016. However, some Iranian speculators still trade in the online Forex market. Is this prohibition on Forex trading reasonable? According to reports, the majority of Forex day traders fail and leave the market within six months to a year. Some scholars attribute this failure to the changeable characterist...
متن کاملThe Relationship between the Disposition Effect and Herding Behavior: Evidence from Taiwan’s Information Technology Stocks
This study aims to explore the relationship between the disposition effect and herding behavior of investors trading Taiwanese information technology stocks. This study differs from previous literature in two aspects. First, in contrast with the earlier studies that focused on investigating investors’ herding behavior, this study explores the possibility that the disposition effect drives inves...
متن کامل