Applicability of theory of planned behavior in predicting intention to trade online

Abstract

PurposeThe purpose of this paper is to identify factors that influence the intention to use internet stock trading among investors in Malaysia.Design/methodology/approachA structured questionnaire was used to collect data from investors who are aware of internet stock trading in Malayisa. Out of 300 questionnaire only 144 were usable.FindingsFindings show that attitude, subjective norm and perceived behavioral control has a direct positive relationship towards behavioral intention to use internet stock trading. The theory of planned behavior can be used to explain variation in behavioral intention and actual usage.Research limitations/implicationsMore variations of results could be gained through a wider coverage of respondents. Other factors such as descriptive norm and perceived usefulness should be used to increase the explanatory power of the dependent variable. A comparison of the same study of explanatory power between other intention‐based model could give another valuable contribution.Practical implicationsThis study will provide information on factors that influence and affect investor's intention to use online stock trading. In addition, the result of the study could serve as a guideline by online stock broking organizations in understanding the factors and program that need to be instilled to increase online stock trading among current retail investors and future investors.Originality/valueNot much has been written on understanding intention to use internet stock trading in a developing country.