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1 – 6 of 6Rajdeep Kumar Raut and Santosh Kumar
This paper aims to propose a decision-making framework by investigating the impact of perceived risk and computer self-efficacy on the intention to use online stock trading…
Abstract
Purpose
This paper aims to propose a decision-making framework by investigating the impact of perceived risk and computer self-efficacy on the intention to use online stock trading. Furthermore, it demonstrates the mediation effect of attitude and perceived risk as well as the moderating effect of financial literacy.
Design/methodology/approach
An integration of two popular models, technology acceptance model (TAM) and theory of planned behaviour (TPB), is used to provide a sound theoretical base and enhance the understanding of investors’ behaviour towards online trading platforms. The proposed hypothesised model was examined using structural equation modelling.
Findings
The results obtained from this study indicate that all variables, except subjective norms, had a significant impact on investors’ intention to trade online. Perceived risk was found to be a partial mediator between computer self-efficacy and the intention of investors. Finally, financial literacy was also found as a significant moderator for online trading intention of investors.
Practical implications
This study shows the significance of using the TAM and TPB together to provide a comprehensive understanding of the factors that influence an investor’s behaviour in adopting and using technology for online trading. The hybrid approach of TAM and TPB could be considered for a more nuanced and complete understanding of technology adoption and usage in risky affairs like investment decisions. Again, the significant moderating role of financial literacy provides a lance to look into the scope for improvements in investment decision-makings.
Originality/value
The paper develops an assessment framework for analysing the variables based on the hybrid approach for online trading intention in the context of a developing country.
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Rajdeep Kumar Raut, Rohit Kumar and Niladri Das
Sustainable financial practices are integral to achieving the United Nation’s development goals that necessitates the collaborative efforts of both corporate and investors. This…
Abstract
Purpose
Sustainable financial practices are integral to achieving the United Nation’s development goals that necessitates the collaborative efforts of both corporate and investors. This study focuses on investors’ pro-environmental personal norms (PN) along with hedonic values on socially responsible investment (SRI) intentions, which could help in understanding investors’ responsiveness to corporate Environmental, Social and Governance efforts.
Design/methodology/approach
The sample for this study included 415 responses from young millennial investors, using a cross-sectional research design. A two-step structural equation model was used to analyze construct reliability and validity and to test the hypotheses and overall model predictability. The mediating role of ascribed responsibility (AR) between the awareness of consequence (AOC) and PNs was investigated.
Findings
These results indicate that AOC and AR substantially affect PNs. PNs based on AOC and AR was found to be significant but scored lower than hedonic considerations for SRI. In addition, the relationship between AOC and PNs exhibited a full mediation effect on AR.
Practical implications
These findings suggest that investors are environmentally conscious when aware of the repercussions of their actions. They feel accountable, even when making financial choices. Fund managers might include more environmentally responsible companies in their portfolios and the government could offer tax incentives to attract investors. The active economic participation of an increasing number of pro-environmental investors can improve the macroeconomic climate.
Originality/value
This is the first study to use the norm activation model for pro-environmental behavior in a financial setting. Most previous studies have focused on social norms to showcase individuals’ obligation and responsibility for a good cause. However, this study demonstrates the importance of personal moral obligation in shaping societal norms. Hedonism is a new dimension in the context of responsible investment.
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Rajdeep Kumar Raut, Rohit Kumar and Niladri Das
This study aims to explore and comprehend the reasons behind individual investors’ intention towards socially responsible investment (SRI) in the Indian stock market along with…
Abstract
Purpose
This study aims to explore and comprehend the reasons behind individual investors’ intention towards socially responsible investment (SRI) in the Indian stock market along with examining the validity of the theory of reasoned action (TRA) model to predict such phenomenon in the Indian context.
Design/methodology/approach
The TRA has been used as an underlying framework and has been extended by adding four variables, namely, moral norms, environmental concern, financial literacy and financial performance. The study used a self-administered questionnaire and adopted a convenience sampling method for a survey to collect the data from the individual investors from the capital cities of three states of India. Further, the collected data have been analysed using two-step structural equation modelling.
Findings
Results of this study indicate a significant impact of attitude, subjective norms, moral norms, financial literacy and financial performance on investors’ intention towards SRI; however, no significant relation was found between environmental concern and investors’ SRI intention. The multiple squared correlation (R2) shows that the final model could explain 71% of the variance in investors’ intention towards SRI, which signifies a successful implementation of TRA model along with new additions to predict investors’ decision-making behaviour for SRI. Moreover, investors are found to be highly concerned primarily about their financial goals and then for their personal obligation towards society as far as SRI is concerned.
Practical implications
This study reports significant and prominent importance of subjective norms in SRI which could be a strategic theme for the government and the policymakers to influence investors through their opinion leaders to promote SRI. The government should also increase its efforts to facilitate financial literacy among citizens.
Originality/value
Using the TRA model and four variables, namely, moral norms, environmental concern, financial literacy and financial performance addition to its original variables, this study extends the understandings of SRI which is perhaps the novelty of this paper because such examination of SRI has not been conducted, especially in the case of developing countries such as India.
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Rajdeep Kumar Raut, Niranjan Shastri, Akshay Kumar Mishra and Aviral Kumar Tiwari
This study aims to investigate factors that influence the attitudes and intentions of investors towards environmental, social and governance (ESG) stocks in the presence of…
Abstract
Purpose
This study aims to investigate factors that influence the attitudes and intentions of investors towards environmental, social and governance (ESG) stocks in the presence of perceived risk as a moderator.
Design/methodology/approach
Data was collected through an online survey method from 341 investors with more than three years of investing experience. Smart PLS was used to analyse the data using two-stage structural equation modelling. First, a measurement model was performed for construct reliability and validity, followed by path analysis (structural model) for hypothesis testing and overall model predictability.
Findings
The findings show that both environmental concern (altruistic value) and economic concern (egoistic value) are crucial for the attitude and intention of investors to invest in ESG-backed stocks; however, environmental concern was found to be a more significant predictor of their behaviour, showing evidence of pro-environmental values in the decision-making of utility-seeking individuals. No significant impact of perceived risk was evident as a moderator of the relationship between attitude and intention towards ESG stocks.
Practical implications
The study's findings have implications for fund managers, policymakers, and the government. Values as antecedents were found to be influential in shaping investors’ attitudes and intentions towards the environmental cause. Fund managers could include more ESG-compliant companies in their portfolios, and the government can play an important role in encouraging investors by providing financial incentives. Corporates should also take strategic steps to adopt green production processes to secure long-term, sustainable capital funding.
Originality/value
To the best of the authors’ knowledge, there has been no research done in the field of ESG investing that takes into account the values (both altruistic and egoistic) of investors as potential antecedents of their attitudes and intentions.
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Rahul Meena, Akshay Kumar Mishra and Rajdeep Kumar Raut
The purpose of this paper is to supplement and update previously published articles about artificial intelligence (AI) instruments and operations in banking sectors with the…
Abstract
Purpose
The purpose of this paper is to supplement and update previously published articles about artificial intelligence (AI) instruments and operations in banking sectors with the following objectives in mind: to understand the role of AI in banking sectors; to explore the themes and context in this area based on keywords, co-citations and co-words; and to identify future research direction by evaluating the trend and direction of previous research.
Design/methodology/approach
This study adopts a semi-inductive approach with the convolution of bibliometrics and literature review. This study used bibliometrics for the identification of literature across multiple databases and systematic literature review on identified articles to explore heterogeneous sectors within AI in banking and finance.
Findings
This study contributes a literature-based model that accounts for both the broadly in AI application in banking and finance: predictive modeling in risk assessment and detection; financial decision-making; client service delivery; and emerging FinTech applications of AI and machine learning.
Originality/value
This study is among the few to address the literature of tools and application of AI in banking through mixed-methods approach and produce a synthesized model for the same.
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This study aims to explore the importance of past behaviour and financial literacy in the investment decision-making of individual investors and examines the validity of the…
Abstract
Purpose
This study aims to explore the importance of past behaviour and financial literacy in the investment decision-making of individual investors and examines the validity of the theory of planned behaviour in this context.
Design/methodology/approach
The study used a self-administered questionnaire and adopted the convenience sampling technique followed by a snowball sampling method for the survey to collect data from the individual investors covering the four distinct states of India. Collected data were analysed on AMOS 20.0 using two-step structural equation modelling (SEM).
Findings
Results indicated a significant effect of all the predictive variables. Past behaviour showed no significant direct impact on investor's intention; however, it had an indirect significant relationship while mediated by the attitude of investors. The multiple squared correlation (R2) showed that the final model could explain 36% of the variance in investors' intention towards stock investment which signified a successful implementation of the TPB model along with external variables added to it. Moreover, Indian investors were found to be highly influenced, primarily, by social pressure which could be curbed through financial literacy.
Practical implications
A significant importance of subjective norms was found on stock market participation which could be a strategic theme for the government and the policymakers to educate investors through their opinion leaders for increasing their participation. Moreover, by doing so investors could control their behaviour and take rational decisions.
Originality/value
This study extended the understandings of investor's decision-making behaviour using TPB by incorporating the two external variables viz., Financial literacy and past behaviour. The addition of past behaviour is perhaps the novelty of this article since such examination has not been conducted empirically especially in the case of developing countries like India.
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