Academic journal article Journal of Electronic Commerce Research

Will Stock Investors Use Mobile Stock Trading? a Benefit-Risk Assessment Based on a Modified Utaut Model

Academic journal article Journal of Electronic Commerce Research

Will Stock Investors Use Mobile Stock Trading? a Benefit-Risk Assessment Based on a Modified Utaut Model

Article excerpt

ABSTRACT

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 analysis results of PLS reveal three positive determinants (i.e., performance expectancy, effort expectancy, and social influence) and three negative determinants (i.e., security risk, economic risk, and functional risk) that significantly influence stock investors' behavioral intention to use mobile stock trading. Furthermore, the results of moderating effect analysis indicate that gender differences moderate the effects of social influence on behavioral intention to use mobile stock trading, while age differences moderate the impact of effort expectancy on mobile stock trading use intention. This implies that to facilitate the intention to use mobile stock trading, securities firms need to consider stock investors' technological perceptions and risk perceptions of this type of trading. The findings of this study not only have important implications for m-commerce research, but also provide insights for securities firms and developers of mobile stock trading systems.

Keywords: M-commerce, mobile stock trading, UTAUT, perceived risk, information technology adoption

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1. Introduction

Facing a highly competitive business environment, securities firms have invested heavily in information technology (IT) to enhance their competitive advantage [Allameh & Jafari 2010; Hameed et al. 2010]. Recently, mobile stock trading, an innovative transaction platform allowing stock investors to trade via mobile devices, has been implemented by most securities firms to enhance customer (i.e., stock investor) service. The development of mobile stock trading has followed on from Internet stock trading, which, in turn, followed on from self-service stock trading. While similar in many respects to Internet-based stock trading, mobile stock trading provides stock investors with specific benefits, such as real-time financial market information, account inquiries, and mobile trading without human brokers regardless of the investor's location [Cruz et al. 2010; Koenig-Lewis et al. 2010; Shen et al. 2010].

Despite the tremendous growth and future potential of mobile devices and the mobile Internet, mobile stock trading is still in its infancy, leaving a great deal of room for development. However, the nature of mobile devices2 generates several limitations for the use of the mobile stock trading service. First, mobile device screen size is small with limited display resolution. Second, compared with a computer, data entry via a mobile device is inconvenient. Third, system functions and interfaces are simplified. Fourth, mobile device power is limited, making it difficult for stock investors to monitor stock market for extended periods of time [Bouwman et al. 2007; Kim et al. 2007; Hameed et al. 2010]. These limitations frequently require users to expend more time and effort in completing a task on a mobile device than they do by using a personal computer, such as desktop and laptop. Hence, these limitations mentioned above may prevent users from switching to mobile-based trading [Wang et al. 2009; Lin et al. 2011]. While Internet-based stock trading [e.g., Teo et al. 2004; Ramayah et al. 2009; Singh et al. 2010] and several types of mobile-based financial services [e.g., Bouwman et al. 2007; Kim et al. 2007; Hameed et al. 2010] have been extensively studied, there has been very little research into the factors affecting stock investors' intentions to use mobile stock trading.

A better understanding of stock investors' usage intention would have great practical value, not only for managers of securities firms seeking to manage more effectively the implementation of mobile stock trading, but also for mobile stock trading practitioners who wish to assess stock investors' demands for mobile stock trading and improve their services. …

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