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Measuring the Effects of Risk and Cultural Dimensions on the Adoption of Online Stock Trading: A Developing Country Perspective

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  • Safeer Ullah Khan

    (Donlinks School of Economics and Management, University of Science and Technology Beijing, Beijing, China)

  • Xiangdong Liu

    (Donlinks School of Economics and Management, University of Science and Technology Beijing, Beijing, China)

  • Ikram Ullah Khan

    (Institute of Management Sciences, University of Science and Technology Bannu, KP, Pakistan)

  • Cheng Liu

    (Donlinks School of Economics and Management, University of Science and Technology Beijing, Beijing, China)

  • Zahid Hameed

    (Department of Management, Khwaja Fareed University of Engineering & IT, Rahim Yar Khan, Pakistan)

Abstract

Online stock trading (OST) is a growing phenomenon across countries, yet there is a sparse literature focusing on the negative utilities (risks) that causing the low adoption. Drawing from perceived risk theory, this article attempts to fill the gap by identifying the influential risk factors that impede the acceptance of OST in a developing country, Pakistan. The study also applies the Hofstede cultural theory to ascertain the effects of cultural moderators on investors' usage behavior (UB). Based on structured questionnaire, 443 valid responses were received from current and potential investors. The model was tested using structural equation modeling through Smart-PLS. The results validate a negative and significant relationship between risk dimensions and investors' behavioral intentions (BI) to use OST. Especially time, financial, performance, privacy and opportunity cost risks are found having a negative impact on investors' BI. Moreover, the study finds that cultural dimensions, collectivism, and uncertainty avoidance, moderate the relationship between BI and UB.

Suggested Citation

  • Safeer Ullah Khan & Xiangdong Liu & Ikram Ullah Khan & Cheng Liu & Zahid Hameed, 2018. "Measuring the Effects of Risk and Cultural Dimensions on the Adoption of Online Stock Trading: A Developing Country Perspective," International Journal of Enterprise Information Systems (IJEIS), IGI Global, vol. 14(3), pages 106-127, July.
    • Handle: RePEc:igg:jeis00:v:14:y:2018:i:3:p:106-127
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    Citations

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    Cited by:

    1. Safeer Ullah Khan & Mansi Wang & Ikram Ullah Khan & Xiang‐dong Liu, 2022. "Evaluating stock trading behaviour: Information sources nexus through intrinsic and extrinsic motivation," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 2965-2976, July.
    2. Naeem, Muhammad & Ozuem, Wilson, 2021. "The role of social media in internet banking transition during COVID-19 pandemic: Using multiple methods and sources in qualitative research," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    3. Dongxiao Gu & Salman Khan & Ikram Ullah Khan & Safeer Ullah Khan & Yi Xie & Xingguo Li & Gongrang Zhang, 2021. "Assessing the Adoption of e-Health Technology in a Developing Country: An Extension of the UTAUT Model," SAGE Open, , vol. 11(3), pages 21582440211, August.

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