Intention in Using Internet Stock Trading
By: Rayenda Brahmana
After Ajzen and Fishben formulated the Theory of Reasoned Action (TRA) in 1980, much research explores the intention attitude of human being. Ajzen and Fishbein formulated the TRA after trying to estimate the discrepancy between attitude and behavior. This TRA was related to voluntary behavior. Later on behavior appeared not to be 100% voluntary and under control, this resulted in the addition of perceived behavioral control. With this addition the theory was called the theory of planned behavior (TPB). The theory of planned behavior is a theory which predicts deliberate behavior, because behavior can be deliberative and planned1.
There is indeed many research contemplates TPB/TRA as the underlying theory in explaining the intention of behaviour. It is gauged in explaining AIDS prevention (see Fisher et al., 1995, Health Psychology Journal), Entrepreneurship (see Segal, Bargia & Schoenfeld, 1995, International Journal of Entrepreneurial Behaviour and Research), Drugs and Alcohol Use (see Laflin et al., 1994, Substance Use and Misuse journal), and other related research. Interestingly, it can be used also in Finance.
Actually, my main point here is to introduce TRA as a theory that can be used in finance. There is one paper from my collegue (Gary Rangel, PhD) examining the intention in using internet stock trading among Malaysian Investor. It is a very interesting study. I give you in brief what the paper is.
First of all, the paper was published in impact factor journal (1.3 impact factor) namely “Computer in Human Behaviour”. This paper is also the winner of USM Sanggar Sanjung Award for Best Journal Publication Category. Indeed, he collaborated with other scholars, including T. Ramayah (For the profile of Prof. Ramayah, you can check it from http://www.ramayah.com).
The paper studied factors influencing the intention to use internet stock trading. They chose decomposed theory of reasoned action as the theoretical explanation in intention to use. The study collected 144 investors who are aware of internet stock trading in Malaysia. The findings show that attitude and subjective norm have a direct positive relationship towards behavioral intention to use Internet stock trading. Attitude was significantly influenced by perceived ease of use and perceived usefulness whereas subjective norm was significantly influenced by injunctive norm and descriptive norm which were proposed as antecedents. In addition the results of the study could serve as a guideline for online stock broking organizations in understanding the factors and programs that need to be initiated to increase online stock trading among current and potential retail investors. As not much has been written on decomposed theory of reasoned action, particularly in Internet stock trading, this study adds to the literature of understanding intention to use a technology in a developing country.
For the complete version of this study, you can download it from http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6VDC-4WXB50T-2&_user=4187955&_coverDate=11%2F30%2F2009&_rdoc=1&_fmt=high&_orig=search&_origin=search&_sort=d&_docanchor=&view=c&_searchStrId=1582003703&_rerunOrigin=scholar.google&_acct=C000012438&_version=1&_urlVersion=0&_userid=4187955&md5=8f7e6a71c41b9be4c53b16a34dfb5207&searchtype=a