The adoption of Internet-based stock trading: a conceptual framework and empirical results

The adoption and diffusion of innovative technologies have remained critical concerns in information systems research. With the recent advent of electronic commerce, issues in system deployment and user acceptance have become even more crucial. An experimental system, Stocknet, which is a departure from normal practice in the local stock exchange which still uses conventional methods for share transactions, was developed and subjected to a pilot test through a stock trading competition using live stock data. A research framework was developed with the main emphasis on the adoption and deployment of a broad-based Internet stock-trading platform in Singapore. A logistic regression analysis was conducted to predict user acceptance of a new system from a measure of their perceptions, beliefs and attitudes and usage behaviour. The study reveals that users' concerns, expectations, perceived ease of use and the real value added of a new system as well as their trading behaviour are critical determinants to the ultimate adoption of Internet stock trading. In fact, the probability of users accepting a new system is highly dependent on their perceptions of system evaluations and subsequently their usage behaviour. The primary focus of this paper is on users' perspectives with a view towards a subsequent examination of policy as well as regulatory issues. Based on the results, some broad recommendations and implications are subsequently drawn with regard to the future adoption and deployment of real-time, Internet-based stock trading.

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