Effect of IT Trading Platform on Financial Risk-Taking and Portfolio Performance

Author

Abu El Fadl, Moustafa ; Abbey, Boris ; Choi, Kyungsub Stephen

Author_Institution

Sch. of Bus., Ithaca Coll., Ithaca, NY, USA

fYear

2015

fDate

5-8 Jan. 2015

Firstpage

3298

Lastpage

3306

Abstract

As a fast growing area in Finance, Information technology (IT) plays an important role in how traders trade online. Investigating whether online trading has a significant effect on financial returns and risks is central to this inquiry. This study, using perceived usefulness and satisfaction categories, addresses how the IT trading platform affects the trader´s trading risk-taking behavior and stock portfolio performance. We examined two unique data sets: 2,726 proprietary online trading accounts and 178 professional investors´ field survey. The results revealed that while the perceived usefulness category presented significant differences between the risk-taking groups and significant impact on stock portfolio performance, the satisfaction category showed no significant results.

Keywords

electronic commerce; human factors; investment; risk management; IT trading platform; financial returns; financial risk-taking; information technology; online trading; perceived usefulness category; professional investors; risk-taking groups; satisfaction category; stock portfolio performance; trading risk-taking behavior; Biological system modeling; Computers; Customer satisfaction; Finance; Portfolios; Security;

fLanguage

English

Publisher

ieee

Conference_Titel

System Sciences (HICSS), 2015 48th Hawaii International Conference on

Conference_Location

Kauai, HI

ISSN

1530-1605

Type

conf

DOI

10.1109/HICSS.2015.398

Filename

7070213