Intention to Use Voluntary Disclosure Information on Social Media for Investment Decisions: Analysis Using Perceived Ease of Use and Perceived Usefulness

Gunawan Wibisono,Soon Yong Ang

doi:10.28992/ijsam.v3i2.90

Abstract

This study analyzes investor behavior when using voluntary disclosure information posted on social media pages in their investment decision-making. To measure the relationship between belief constructs and behavioral intention, the technology acceptance model was used. To this end, two belief constructs were employed: 1) perceived ease of use and 2) perceived usefulness. These constructs were applied to the intention to use voluntary disclosure information posted on social media pages in the investment decision-making process. The study examined 150 employees as respondents, using structural equation modeling for hypothesis testing. The findings showed that investors in Indonesia viewed voluntary disclosure information posted on social media pages as affecting their intention to use such information in the process of investment decision-making. Both perceived ease of use and perceived usefulness affected the aforementioned intention. The study also found that perceived ease of use had both a direct and an indirect effect through perceived usefulness.

Highlights

Studies on corporate disclosure found that corporate disclosure can influence the economy of a country, and voluntary disclosure able to minimize the gap that arise from information asymmetry in corporate disclosures (Botosan, 1997; Bushman & Smith, 2003; Ben-Amar & McIlkenny, 2015)
This study found that perceived ease of use of voluntary disclosure information on social media pages has a strong effect to perceived usefulness of voluntary disclosure information on social media pages
This means that investors feel that the less effort needed in using the voluntary disclosure information on social media pages, the more likely it will affect their effectiveness and efficiency in using the voluntary disclosure information in their investment decision making process

Summary

Introduction

Studies on corporate disclosure found that corporate disclosure can influence the economy of a country, and voluntary disclosure able to minimize the gap that arise from information asymmetry in corporate disclosures (Botosan, 1997; Bushman & Smith, 2003; Ben-Amar & McIlkenny, 2015). In the U.S, SEC has allowed the use of social media pages as alternative channels of corporate disclosure (Prokofieva, 2015). This allowed company management to disclose corporate and financial related information through social media pages. ASX in Australia has done the same, allowing corporate disclosure posted on social media pages (Prokofieva, 138 Wibisono and Ang. 2015). The authority in Indonesia has not touch the issue despite the growing usage of social media pages to publish corporate disclosures by Indonesian companies. Zhou et al (2015) mentioned that this age group were the most users to adopt social media

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