preparation of measurement tools of the effective factors for the acceptance of online stock trading

European Journal of Economics, Finance and Administrative Sciences
ISSN 1450-2887 Issue 19 (2010)
© EuroJournals, Inc. 2010


Preparation of Measurement Tools of the Effective Factors for
the Acceptance of Online Stock Trading


Alireza Abroud
Faculty of Management, Multimedia University, Jalan Multimedia
63100 Cyberjaya, Selangor, Malaysia
E-mail:
Tel:+60173423578.

Yap Voon Choong
Faculty of Management, Multimedia University, Jalan Multimedia
63100 Cyberjaya, Selangor, Malaysia
E-mail:
Tel: +603-83125785

Saravanan Muthaiyah
Faculty of Management, Multimedia University, Jalan Multimedia
63100 Cyberjaya, and Selangor, Malaysia
E-mail:
Tel: +603- 83125768


Abstract
The purpose of this research is to prepare valid and reliable tools for the measurement of
effective factors in the electronic technology to participate in stock trading and to evaluate

a model proposed to initiate stock investors to use internet as a medium for trading. A pilot
study was planned and carried out employing a questionnaire based on theory planned
behavior and a technology acceptance model. Subsequent to designing the questionnaire
and performing reliability tests by means of Cronbach Alpha and Richardson, statistical
analysis was performed and the examination of the predictor and dependent variables of a
relational model by standard and hierarchical regression methods were carried out on 34
investors at Tehran stock exchange. The results of this research showed that the variable,
namely attitude, subjective norms, usefulness, knowledge, and self-efficiency had strong
relationship with intention and other related variables. Furthermore, the risk variable had a
negative relationship with attitude. Besides, the perceived behavioral control, social
demography, and ease of use had weak relationship and proved to possess no effect on the
intention of the investors to engage in internet stock trading at Tehran stock exchange.


Keywords: Online stock trading, investor perspective, TPB, Iran stock market, Securities.

1. Introduction
In the past two decades, the effects of technological development, especially in information technology
on organization management, administration methods and modes of financial services in the world has
been significant. These effects are considered a fundamental axis for economical development as a
35 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

service provider to other economical and managerial sectors. Also, there has been ever-increasing
development of information technology via the internet which has proven to be an effective factor in
financial sectors and their related services. As a result, there has been a surge in electronic financial
services.
The internet can be appropriately named as one of the most important human inventions in
history. It has been one of the most effective, essential and indispensable technologies so far. Its multi-
purpose use and potential profitability has influenced not only social development, health and
economic programs but also stock exchange markets that drew a lot of investors, as a result. The extent

of this phenomenon is not limited only to industrial countries and developed or emerging markets. This
is due to the fact that even countries with undeveloped financial systems have taken a giant leap in
their progress by merely taking advantage of electronic financing methods to compensate for their
backwardness.
With the introduction of electronically financial services, the sectors that were mostly affected
were the investors' services and securities exchange agencies. Therefore, these agencies, by taking
advantage of new markets expanded their businesses to several world financial centers. These
electronic investment markets were also able to help investors by the enhancement of information
transparency and speed in economic transactions. Brails found that the results obtained from internet
stock, simultaneously increased the transactions and information exchanges by 77%(Brail sford 1999) .
The development of the Internet in stock exchanges has created an explosion in the rate of
exchanges at the world level in such countries such as the U.S.A, Hong Kong, South Korea, Thailand,
Singapore, Taiwan, and other developed or developing countries. Most of the stockholders and
investors unanimously confirm that internet stock exchanges are in fact one of the best and important
sectors for the implementation of electronic commerce if the differences in duties and type of
electronic activities were overlooked.
Maybe, one of the most significant and exciting examples in recent growth of electronic
commerce was in the U.S.A securities exchanges. It was estimated that 15% of private investors'
accounts were performed through internet, and the number of the accounts through which exchanges
performed by internet was more than 4.5 million people by the end of 1999 (Hong 2000). In 2007, the
rate of public stock value exchanged amounted to 19.95 trillion dollars (CIA 2008) the total value of
the stock exchanged through internet in U.S.A securities exchange in 2004 amounted to 64%
(Kennickell 2000).
With reference to the report by J.R., the number of the world internet accounts reached to
900,000 accounts in 6 mostly European countries by 1999. This figure increased to more than 8.3
million accounts by 2000 with a 20% increase for every 4 months (Hong 2000). Furthermore, the
Internet stock exchange grew amazingly in Asia. For example, the value of stock exchanges in Cyber
Space increased by about 234% for the first 7 months of 2000 in South Korea (Hong 2000). In 2008,
South Korea ranked 18 among the world countries with a value of 623 billion dollars of stock
exchanges (CIA 2008). In the same way, the rate of internet stock exchange in Hong Kong in 2005 had

reached 46% (Adela and patrick 2001)and this figure was 40% for Singapore in 2003 (Lee. and Ho
2002)and 35% for Thailand in 2005 (Piotr and K 2005). Also, it is worth mentioning that the speed of
internet exchanges performances has improved so significantly that stock purchase and sale is
performed just by a ‘click’ throughout the world.
Although it has been commonly accepted that the online stock exchange is an inevitable
solution for economic development and improvement of new systems throughout the world, some
investors and stock brokers avoid performing online transactions. They are doubtful whether this
system will satisfy their needs in stock exchanges or not(Shi-Ming and H. Yu-Chung 2005).Some are
undetermined as to whether stock electronic commerce can provide competitive advantages and
commercial opportunities for them.
36 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

With the technological revolution and development in information exchanges, Iran also had
partaken the arena in electronic commerce sectors such as stock exchanges and securities. Iran has
created suitable conditions for the investors by providing the required substructures such as technical
facilities and telecommunications, an electronic banking penetration expansion, strengthening of laws
and regulations, educating and supporting investors for the use of internet in stock exchanges. On the
basis of recent reports, the value of stock exchanges in Iran was 45 billion dollars in 2007 with an
internet penetration rate of 34% raking 57 among the world countries for the value of stock exchanges
(CIA 2008). But the electronic stock exchange rate was only 7% of the total stock exchanges in 2006
in Iran (Bagherian 2007). This figure was very low compared to other developing countries which
necessitated the study of important and decision-making factors in stock exchanges in Iran.
Due to the fact that online transactions were imperative and the growing need for the support of
economic policy-makers for its increased use in financial transactions, especially in stock exchanges
and securities, it is necessary that focus is given to the improvement and development of the above-
mentioned substructures. Thus, the study of behavioral factors such as the attitude of the investors,
subjective norms, knowledge, perceive behavioral control, risk, ease of use as well as simple
understanding of the usefulness of modern technology by the investors and brokers are all inevitable.
For this purpose, one of the theories and the models employed by the researchers in the previous
related studies to help the acceptance of modern systems by the users is the theory acceptance model

(TAM),theory reason action (TRA) and theory of planned behavior (TPB).


2. Literature Reviews
The research models of technology adoption have thus been extensively used in the study of online
customer behavior. (Christy and Gloria WW 2005)found that most authors depended heavily on
theories from the TRA family; including the theory of reasoned action (TRA), the technology
acceptance model (TAM) and the theory of planned behavior (TPB).

2.1. Theory of Reasoned Action
Fishbein and Ajzen (1975) developed the TRA, which examines attitudinal and normative influences
on behavior. According to TRA, a person’s performance of a specified behavior is determined by his
behavioral intention (BI) to perform the behavior. Behavioral intention (BI) is jointly determined by the
individual’s attitude (A) and subjective norm (SN) concerning the behavior .They also assign weights
(w) to these attitude (A) and subjective norm (SN) determinants. The weights are indicative of the
relative importance of each determinant and can vary with each situation and each person. They are
typically estimated via linear regression. The relationships among behavior, intention, attitude, and
subjective norm are depicted as:
BI=W1 (A) +W2 (SN) (1)
Where w1and w2 are the relative weights given to each component by (Ajzen and Fishbein
1980).

2.2. Technology Acceptance Model
The Technology Acceptance Model (TAM), introduced by (Davis 1989), is an adaptation of the
Theory of Reasoned Action (TRA) specifically modified for modeling user acceptance of information
technology (Davis, 1986; Davis, 1989).TAM suggests that attitudes predict intentions, and intentions
predict behavior. According to the TAM, adoption behavior is determined by the intention to use a
particular system and the intention is determined by the attitude, which in turn is determined by the
perceived usefulness and perceived ease of use of the system (Davis 1989). Davis stated that the main
goal of TAM is to explain the determinants of IT acceptance across a broad range of information

37 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

technologies and user populations. Moreover, Davis proposed that acceptance of IT can be determined
by two primary constructs: perceived usefulness and perceived ease of use of the technology.

2.3. Theory of Planned Behavior
Ajzen (1991) refined and added an additional element to an earlier theory of reasoned action (Ajzen &
Fishbein, 1975) to propose a new theory he termed theory of planned behavior. Theory of planned
behavior describes an important fourth element of behavioral decision-making as the perception of
behavioral control (PBC). A perceived behavioral control is defined as behavioral controls are
perceptions of one's beliefs in their ability to perform a given behavior. They are defined operationally
as the rate to the extent to which an individual has the ability to perform (how much the behavior is
under their control) a specific behavior (Ajzen 2002).
TPB defines intentions in terms of three belief structures: attitude (predisposition toward a
particular object, event, or act, that is subsequently manifested in actual behavior), subjective norm
(perceptions about social forces influencing a behavior), and behavioral control (perceptions of internal
or external constraints affecting the behavior). These constructs are, in turn, determined by three sets of
perceptual beliefs: attitudinal beliefs (Cognitive beliefs regarding the instrumentality of the intended
behavior), normative beliefs (beliefs about the social desirability of that behavior), and control beliefs
(beliefs about behavioral constraints affecting behavioral performance).

2.4. Conceptual Model for this Study
Christy, Lei et al. (2003) identified the theories that are used by the authors of the 351 papers surveyed.
Findings show that the Theory of Reasoned Action (TRA) and its family theories including the
Technology Acceptance Model (TAM) and the Theory of Planned Behavior (TPB) are the dominant
theories in this area (online trading). The findings show Researchers, therefore, should try to extend
theories and modified new models also new frameworks and investigate online customer behavior from
different perspectives. Many studies also tested the TRA, TAM and TPB and found that TPB provided
the better explanation to online customer behavior than what TAM and TRA did (Hansen et al. 2004,
Hung and Chang, 2005).

2.5. Major Antecedents to Online Stock Trading
Most researches done in the last decade on online investor behavior attempted to identify major
antecedent factors to determine online investors behavior (Lee. and Ho 2002; KhaliL 2005),.this is due
to the fact, previous studies portaged large numbers of antecedents on online stock trading. The factors
of online trading consist primarily of personality, type of product, online service quality, website
quality, investor experience, computer experience, related advantage, price sensitivity, and so on .since
it is not feasible to consider all antecedents in one research model, in accordance with the principles of
parsimony, researchers normally select a minimum of three constructs which are capable of evolving
empirical results of high validity and reliability.
38 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

Figure 1: The proposed framework on the basis of TPB

Perceived
usefulness
Perceived Risk

Perceived
Ease of use

Self-efficacy
K
nowledge
Attitude
toward
behavior

Subjective

norms

Perceived

behavioral
control

Intention to
adopt online
stock
exchange

Online stock
exchange

Demographi
c control
Variables



Based on previous studies, it has been noted that three precluding factors namely, perceived
risk, investment knowledge and demographic control variables which were not emphatically identified
and empirically examined in priors’ stock market studies are conspicuously integrated and included in
this research model.
Since no study has been done so far on the recognition of behavioral and attitudinal factors in
the securities stock exchanges of Iran, the aim of this research is therefore, to study the effective and
decision-making factors for the acceptance and use of internet in the stock exchanges of Iran by the
investors, while evaluating their attitudes . This research as a pilot study is a research which will be
carried out on all subsets of the groups related to stock commerce including investors and brokers in

the future. In addition to this, a questionnaire was prepared and verified its validity for the final
research.


3. Methodology
This is a pilot study based on the theory of planned behavior (TPB). The expected behavior under
study in our research was the acceptance of the application of information technology within the
framework of electronic commerce in the stock market by the people involved in this commerce. The
measurement tools for the identification of the effective factors in the selection or the decisions made
for the application of this technology was studied by the investors in the stock market.
The population target study comprised of Tehran stock market investors and the time required
for the study was a 4-month period as of May 2009. The unit under study was each of the people
working as an investor at Tehran stock market within the specified period. The study comprised of two
major stages; the first stage comprised all the activities leading to the planning of valid measurement
tools for the execution of the research and the second stage comprised of reliable tests along with
preliminary analysis of the behavioral model of the acceptance of electronic technology in the
commerce of stock market performed on the small group of the population under study.
In the first stage, a valid questionnaire was planned for the research. We had to divide our
questionnaire into different sections so that each section was devoted to one of the main predictor
variables or outcome variable in the planned behavior theories and in the technology acceptance.
Therefore, the attached questionnaire (Appendix 1) is composed of 9 parts. Section 1 included
information related to socio-demographic variables (including age, gender, education, etc.) and other
sections were devoted to the study of behavioral variables. Since the structure of behavioral variables
employed in this research was in the form of hidden variables and were not directly observable, we
39 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

therefore used the 5- type scale Likert variables for this study(Adela and patrick 2001).Because
responses are graded, this method is more flexible and can be more useful than other methods in
contrast to other one-section evaluation methods used for the variables. The behavioral variables
related to our study were attitude, subjective norm, self-efficacy, risk and ease of use, perceived

usefulness, perceived knowledge, and intention, respectively. Our standard for the measurement of the
socio-demographic variables were nominal, but all the behavioral variables were calculated by interval
standard. (Table 1)

Table 1: Summary of the sample of questions use in this study

Sections Constructs Sample questions/Items Definition No
1
Demographics
variables
How old are you?
The socio-demographic determinants which
can affect the relation between different
constructs in behavioral model of adoption of
online stock trading
6
2 Attitude
I feel using Internet stock trading is a
wise idea.
General evaluation of a person is related to an
action or a phenomenon
6
3
Subjective
Norm
Most people who are important to me
would think that using the Internet
stock trading is a wise idea.
The study of personal perception against social
pressures for the performance of a definite

behavior
3
4 Self-Efficacy
I could conduct my stock trading
transactions using the Internet stock
trading system if I had the system
manuals for reference.
Is a person’s beliefs in her capabilities and
cognitive resources required to cope with
given events, Ajzen (2001)
8
5 Perceived Risk
I am not confident over the security
aspects of Internet stock trading in
Iran.
Is belief about the likelihoods of gains or
losses outside of considerations that involve
the relationship with the particular trustee?
8
6
Perceived Ease of
Use
My interaction with the Internet stock
trading system is clear and
understandable.
Is the degree to which the person thinks that
using the IS will be free of effort.
5
7
Perceived

Usefulness
Using Internet stock trading system
would save time.
Is the degree to which a person believes that
using a particular system would enhance his or
her job performance?
5
8
Perceived
Knowledge
I think I have the proper knowledge
of doing online stock trading.
Investors' and Brokers' feeling of having the
knowledge and ability of using online stock
trading
6
9
Behavioral
Intention
I intend to use/continue using
Internet stock trading in the next six
month future.
A measure of the strength of intention to
perform a specific action.
6
10
Perceive
behavioral
control
I would be able to operate Internet

stock trading
The perception of the availability of skills,
resource and opportunities
4

After the preparation of the preliminary questionnaire, it was examined by 5 persons for
transparency and clarity of the questions and the items were evaluated. It was also evaluated for its
sentence structures and comprehensibility of the words. On the basis of the collected comments at this
stage, a number of the questions were rewritten and some words were replaced with more
unambiguous and more comprehensible words.
In the second stage, 50 persons were chosen by simple random selection from the investors of
Tehran stock market to complete the questionnaire. Besides that, the first two pages of the
questionnaire were devoted to the information sheet and the consent of the company 34 out of 50
persons referred announced their readiness for participation with a response rate of 68% which was a
good rate. To increase the response rate when referring to them, the questionnaire was completed in
their free time and they were informed that the information they provided were to be kept confidential
and only the statistical analysis of the completed questionnaire would be used for the improvement of
practical policies of the stock market. In addition to that, a book under the title of, "An Introduction to
40 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

Electronic Commerce" was given to each participant as a gift for their cooperation. After collecting the
complementary questionnaires and at the reliability analysis stage of measurement tools, sections of the
questionnaire related to the dependent variable and predictor variables including attitude, subjective
norm, PBC, self-efficacy, ease of use, usefulness, and perceived risk were examined by internal
consistency through Cornbach Alpha for their reliability. The perceived knowledge variables were
tested for their reliability with regard to Dichotomous variable through a special state of Cornbach
Alpha named Kuder Richardson Test. The results of the reliability test on the variables are presented in
Table 2.

Table 2: The results of the reliability test on the questionnaire

NO Construct Cronbach's Alpha (Number of Items) Action Cronbach's Alpha (Final)
1 Attitude .865 (7) No action 0.865
2 Subjective norm .651 (4) Item 1 deleted 0.742
3 Self-efficacy .915 (8) No action 0.915
4 (PBC) .798 (4) No action 0.798
5 Ease of use .709 (5) No action 0.709
6 Usefulness .823 (5) No action 0.823
7 Perceived risk .801 (7) No action 0.801
8 Perceived knowledge .899 (6) No action 0.899
9 Intention .845 (6) No action 0.845

After the reliability analysis, depending on the description of the collected statistical samples
and analysis of the results obtained from the completion of the questionnaires, standard regression
models and hierarchical regression were performed by SPSS Version 17 and through correlation tests.


4. Research Findings
After a descriptive review and analysis of the data of the 34 cases under study, the following results
were obtained. The descriptive statistics showed that the majority of the participants taking part in this
study were males (88.2%) with an age average of 38.12 years (S.D. 11.31) from 24 to 62. According to
Table 3, all the participants were educated with a minimum degree of high school diplomas and most
of them were university graduates (79.4%)

Table 3: Educational level frequency distribution of the investors at Tehran Stock market

Frequency Percent Valid Percent Cumulative Percent
Diploma
7 20.6 20.6 20.6
Bachelor

18 52.9 52.9 73.5
Master or PhD
9 26.5 26.5 100.0
Valid
Total
34 100.0 100.0

In the study of the situation of the use of internet in stock exchanges, it was observed that the
majority of these investors had never used internet for this purpose (Table 4).

Table 4: Past record for the use of internet (years) in stock exchanges by the investors at Tehran stock market

Frequency Percent Valid Percent Cumulative Percent
Never 23 67.6 67.6 67.6
<3 8 23.5 23.5 91.2
>5 3 8.8 8.8 100.0
Valid
Total 34 100.0 100.0

41 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

Statistical analysis performed by Student T-test showed that there was no difference between
the average age of the adapter and non-adapters (t=.42, p<.05). Taking this into consideration, the
sample under study was small; the performance of a valid statistical analysis to observe the relationship
between the educational level of the group of adapters and the non-adapters was not possible.
According to the proposed framework for the study, 4 regression models were considered
among the variables under study. In these 4 models, the variables of intention, attitude and PBC, and
intention were respectively set forth as the dependent variables which were tested as follows:

4.1. The First Model

It included 3 variables of attitude, subjective norm, and PBC as well as the dependent variable of
intention. The results of the standard regression analysis showed that the set of the three variables of
predictors of this model could explain 49.7% of the variance in the intention variable. Because of the
small volume of the sample, after adjusting the score was 44.7%, and still acceptable. The regression
analysis showed that the above set of the three variables along with the intention variable were
significant in the regression model (F=9.9, df=3, p<.001). In the next step, the Slope Hypothesis was
tested to determine the presence or absence of each of the predictor variables and their power in the
model. The results showed that the presence of the attitude variable (p<.01) and to some extent the
subjective norm variable (p=.05) was significant, but there was not significant PBC variable in this
model (table 5).

Table 5: The results of the examination of Slope Hypothesis for the determination of the presence and the
power of the presence of predictor variables in regression model No. 1

Non standardized Coefficients Standardized Coefficients

B Std. Error Beta
t Sig.
(Constant) 5.574 4.337 1.285 0.209
Total attitude 0.513 0.168 0.541 3.064 .005*
Total subjective norms 0.564 0.281 0.303 2.008 .054*
1
Total PBC -0.105 0.306 -0.058 -0.344 0.734
Dependent Variable: Total intention
* significant at the .05 level (p < .05)
** significant at the .01 level (p < .01).

The standardized coefficient correlation scores related to attitude and subjective norm variables
showed that the attitude variable (Beta=.541) was about twice as much as the power of subjective norm
variable (Beta=.303) in the prediction of the intention. According to table 5, the No. 1 standardized and

non standardized regression equations are as follows:
Intention Score= 5.574 + .541(Attitude Score) + .303(SN Score) - .058(PBC Score) (2)
Intention Score= 5.574 + .513(Attitude Score) + .564(SN Score) - .105(PBC Score) (3)
It is observed in the above model that no significant role was found for PBC, but as it is seen in
table 6 that there is a meaningful relation among each of the attitude and subjective norm variables and
even PBC on the one hand and the intention variable on the other hand.(table 6)
42 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

Table 6: The relation among the variables under study in the regression model No.1


Total intention Total attitude Total subjective norms Total PBC
Total intention 1.000 .656 .549 .409
Total attitude .656 1.000 .498 .628
Total subjective norms .549 .498 1.000 .418
Pearson
Correlation
Total PBC .409 .628 .418 1.000
Total intention . .000 .000 .008
Total attitude .000 . .001 .000
Total subjective norms .000 .001 . .007
Sig. (1-
tailed)
Total PBC .008 .000 .007 .
Total intention 34 34 34 34
Total attitude 34 34 34 34
Total subjective norms 34 34 34 34
N
Total PBC 34 34 34 34

In order to answer the question whether the predictor variables are able to predict intention
variable or not when the effects of age, gender, and educational level variables are deleted, the
Hierarchical Regression Analysis was performed at the next stage. With a view to the fact that gender
is dichotomous and age is continuous, but educational level was ordinal, it is therefore required to
change it to a dichotomous variable (with two states of having higher education and lack of higher
education) before controlling the educational level variable. By placing the mentioned control variables
in a block and placing predictor variables in another block, the results of the regression analysis
showed that by controlling these variables, still the attitude significantly predicts the intention variable,
but the subjective norm variable situation is weaker than before in the model. But, the regression model
was still significant and the set of the three variables of attitude, subjective norm, and PBC were able to
explain 41% of the variance in the intention variable which was significant by deleting the effects of
the control variables.

4.2. The Second Model
This proposed model included the attitude variable as the dependent variable and the variables of ease
of use, usefulness, and risk as the predictor variables. A similar analysis showed that on the whole,
these three predictor variables explained only 26% of the variance in the attitude variable. Both the
standard regression and hierarchical regression analysis showed that these variables were not placed in
the model. However, as it is observed in table 7, the variables of ease of use and usefulness have a
meaningful correlation with the attitude variable and the risk correlation of the attitude is also negative,
but is not statistically at a meaningful level (table 7).
43 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

Table 7: Correlation among the variables of regression model No.2

Total attitude Total Ease of use Total Usefulness Total Risk
Total attitude 1.000 .453 .429 142
Total Ease of use .453 1.000 .520 144
Total Usefulness .429 .520 1.000 348
Pearson

Correlation
Total Risk 142 144 348 1.000
Total attitude . .004 .006 .211
Total Ease of use .004 . .001 .208
Total Usefulness .006 .001 . .022
Sig. (1-tailed)
Total Risk .211 .208 .022 .
Total attitude 34 34 34 34
Total Ease of use 34 34 34 34
Total Usefulness 34 34 34 34
N
Total Risk 34 34 34 34
The regression equations on the basis of standardized and non standardized correlation
coefficients related to the analysis were respectively as the following:
Attitude Score= 15.768 + .366(Ease of use score) + .356(Usefulness Score) - .004(Perceived risk Score) (4)
Attitude Score= 15.768 + .315(Ease of use score) + .264(Usefulness Score) - .005(Perceived risk Score) (5)

4.3. The Third Model
This proposed model included the PBC variables as the dependent variables and the two variables of
self-efficacy and knowledge as the predictor variables. As it is seen in table 8, both of the variables of
perceived knowledge and self-efficacy have good correlations and are statistically significant with PBC
variable.
The regression analysis showed that the self-efficacy and perceived knowledge variables on the
whole explained 50.6% (47.6%, after adjusting the volume of the small sample) of the variance in the
attitude variable and the regression model was significant at (F=16.001, df=2, p<0.001).

Table 8: The Relation Among the Variables in the Regression Model No. 3

Total PBC Total self-efficacy Total knowledge
Total PBC

1.000 .707 .290
Total self-efficacy
.707 1.000 .288
Pearson
Correlation
Total knowledge
.290 .288 1.000
Total PBC
. .000 .048
Total self-efficacy
.000 . .050
Sig. (1-tailed)
Total knowledge
.048 .050 .
Total PBC
34 34 34
Total self-efficacy
34 34 34
N
Total knowledge
34 34 34

However, the Slope Hypothesis test showed that only the self-efficacy variable and the constant
were present in this model if they were statistically meaningful. The regression equation with
standardized and unstandardized correlation coefficients was respectively obtained as follows:
PBC Score= 7.711 + .257(Self-Efficacy score) + .034(Perceived knowledge Score) (6)
PBC Score= 15.768 + .680(Self-Efficacy score) + .095(Perceived knowledge Score) (7)
The results of the regression analysis for the control of the variables of age, gender, and
educational level also showed that after the control of these variables, the regression model was again
significant. Also, the only variable that could meaningfully predict PBC was the self-efficacy.

44 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

4.4. The Fourth Model
With a view to the strong role that the usefulness variable showed in the first model and with regard to
the framework for this variable with its direct relationship with intention, it was decided to test the
three variables of usefulness, attitude, and subjective norm which already showed their power in the
prediction of intention variable, in a new regression model.

Table 9: The results of the Slope Hypothesis Test for regression model No. 4

Unstandardized Coefficients Standardized Coefficients
Model
B Std. Error Beta
t Sig.
(Constant) -3.529 3.200 -1.103 .279
Total attitude .257 .111 .271 2.308 .028*
Total subjective norms .567 .201 .305 2.819 .008*
1
Total Usefulness .696 .133 .544 5.242 .000**
Dependent Variable: Total intention .
* significant at the .05 level (p < .05)
** significant at the .01 level (p < .01).

Therefore, the new model included the intention variable as the dependent variable and the
variables of usefulness, attitude, and subjective norm are independent variables.
Findings showed that the three mentioned predictor variables were able to explain 73.7%
intention variable (71% after the adjustment of the volume of the small sample) which was an ideal
score proposing a strong model. The hypothesis test of the regression model also showed that this
model was significant at (F=27.97, df=3, p<.001). As it is observed in table 9, the three variables are

present in this model with statistically good and meaningful power.
Intention Score= -3.529 + .257(Attitude Score) + .567(SN Score) - .696(Usefulness Score) (8)
Intention Score= -3.529 + .271(Attitude Score) + .305(SN Score) - .544(Usefulness Score) (9)
The results of the analysis of the hierarchical regression for the deletion of the effective
variables of age, gender, and educational level also showed that even after controlling these variables,
the regression model was again significant and the three variables of predictor present in the model
were able to explain 71% of the variance in the intention variable.


5. Discussion and conclusion
This study aimed at preparing and compiling measurement tools which would be implemented in the
above theory in the stock exchange organization. However, the results like those in numerous other
studies in similar domains showed that: Like countless studies in which a meaningful relationship has
been proven to exist between attitude, subjective norm and intention, the same relationships were also
proven to exit in this study. Ajzen and Fishbin proposed that both the attitude and subjective norm had
positive and significant effects on intention. Of course, this theory was later extended in TPB theory
and the PBC variable was later added to it.
Other studies also showed that attitude was one of the very important foundations for the
definition of intention for the performance of new behavior (Fishbein and Ajzen 1975; Ajzen and
Fishbein 2005), . For example, the studies done for the compilation and acceptance of new technology
in the electronic finance showed that the subjective norm had been one of the defining variables for
behavioral intention (Lee. and Ho 2002; Venkatesh and Morris 2003; Gopi and Ramayah 2007), Also,
Barki and Hartwik suggested that the subjective norm has had meaningful effect on the intention of the
staff for the application of the new system (Lee. and Ho. 2002). In a similar study, in Malaysia stock
exchange, the subjective norm has had meaningful effect on the intention of the investors for the
acceptance of online stock trading (Gopi and Ramayah. 2007). Also, in this study there was an
45 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

effective relationship between subjective norm and intention. This relationship showed that the amount
of subjective norms is effective on the investor’s intention for internet transactions.

Numerous studies performed in the domain of internet use in commerce unanimously agreed
that one of the most important variables which could be effective in the continuation or acceptance, and
performance of a modern system was the attitude variable (Ajzen 2002; Ajzen and Fishbein
2005)Therefore, according to these studies, attitude was identified to have a very strong and effective
relationship with the intention of the investors at Tehran stock market.
The two variables of self-efficacy and knowledge also had meaningful relationships with PBC
in the case of the PBC variable. In other words, knowledge and self-efficacy variables had a
meaningful and significant relationship with the PBC variable, the PBC variable did not have a
significant relationship with intention to be used through internet in the population of the investors at
Tehran stock market. These findings are very similar to the results of the studies performed by Adela
Lou in 2001 on the training and implementation of the new technology on stock investors (Adela and
patrick 2001).
Another important point worth mentioning in the findings of this study as it was referred to
before is that in the complementary analysis of the statistical data performed through hierarchical
regression we concluded that by controlling the social demography (age, gender, and education) all the
relationship between the variables of attitude and subjective norm with PBC and intention remained
unaffected and variables of social demography had no effect on the internet stock transactions at
Tehran stock market. Such a statistical analysis was probably predictable for age and gender, but for
educational level it was expected that an increase in educational level as an effective background
variable would take action as a covariate and significantly affect the relation of the dependent variable
predictor by our predictor variables.
One of the important reasons that the background variable of educational level could not disturb
the relation between the main independent and dependent variables of our model was that the majority
of the participants in the study were university graduates at M.S. and Ph.D. levels and the rest were at
least high school graduates. The results obtained from this section are similar to the results of the
previous studies done by Sundarapanidiyan on the investors in Malaysian stock markets
(Sundarapandiyan 2005).
Another significant finding in this study was the influential presence of the usefulness variable
in two of the four models. This variable not only had a good meaningful relationship with attitude (in
spite of its inability to effectively predict attitude inside the model), but it also had a strong and direct

relationship with intention of other tested variables was the variable of ease of use which did not
exhibit a meaningful and notable relationship with attitude. Evidently from the results, a weak
relationship was found in this regard yet not significant enough. To infer that the variables with non-
significant correlation with the dependent variable in the regression model might be statistically
significant if the study is repeated on a greater number of cases even if this correlation is small would
be a weak surmise.
On the basis of the definition and the role of the variables in the definition of intention, the
results obtained from the relationship of the risk variable and attitudes were negative. In other words,
the more the degree of risk taking and lack of confidence in the investors in the modern system (online
stock trading), the less was the tendency. Therefore, this relationship was also considered to be
negative, in this study.


6. Limitation and Suggestion for Future Research
Some limitations faced in this study which need to be taken into consideration in related studies in
future are; first, the number of the samples in this pilot study was 34 investors and this sample had
noticeable effects on the relationship among the variables. It is therefore, suggested that in future
studies a greater number of subjects be used as the sample. But, with regards to the existing limitations,
46 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

the reason we chose the regression model for the analysis of the findings of the plan was that the
regression model when compared with other methods of statistical analysis of behavioral models such
as Structural Equation Model (SEM) can provide solutions for a pilot study with a limited number of
findings.
Second, this study only covered the investors in the stock market. With regard to the important
roles of the brokers in stock transactions, it is suggested that in future they also be evaluated in this
regard.
Third, this study only covered investors in Tehran. It is suggested that this study be extended to
the whole country. One of the reasons for such a suggestion might be that other stock markets of the
country are distinctly different from the investors at Tehran stock market for their level of education

(all enjoy either equal or a higher level of education). In addition, it is predicted that in other stock
markets of the country, there might be significant differences pertaining to the intensity of access to
internet, knowledge, awareness, and attitudes towards the internet and even the norms related to the
acceptance of internet technology in stock market transactions. Extending the size of the population
under study to the entire stock markets in Iran can illuminate the different aspects of the relationship
between the dependent and independent variables as well as the background and disconcerting role of
variables such as age, gender, and especially education within such models.


7. Conclusion
The main purpose of this study was to prepare and plan measurement tools as well as test the tools
within a pilot framework that aimed at high reliability. The study dealt with the factors that are
effective in the attitude of stock market investors to accept a new behavior (acceptance of online stock
trading). The statistical analysis on the set of 9 independent variables of which the 5 variables of
attitude, subjective norm, usefulness, knowledge, and self-efficacy, showed effective relationships
while the other 4 variables were identified as the factors with predicted power that was absent in the
model or were identified to have negative effects.
To sum up, among the effective variables, the variables of attitude and usefulness had the most
effect on the definition of intention, respectively. It is proposed that this study be extended to other
stock markets in Iran and at the same time, in addition to the investors at the stock markets it should be
carried out on the brokers. This is to maximize the volume of our study as much as possible in a way
that first, the relational models between the variables expose themselves more clearly. And second, the
hidden correlations can be identified if they are statistically significant.
47 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

References
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48 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

Appendix 1: Questionnare
Section 1: Demographic Information
Please answer the following questions about yourself and your internet activities. Your responses
will be used for classification purposes only.

1- What is your gender? □ Male □ Female
2-What is your age?
3- What do you do in SE? □ Investors □ Brokers □ Brokers and investor
4- Do you use internet as a tool to stock tra
d
□ yes □ No
5- How long have you been online? □ Never □ 1-5year
s
□ >5year
s

6-What is your highest level education? □ High School □ Diplom
a
□ Bachel
o
□ master or PhD

Section 2: Please indicate your answer by circling the number that reflects the degree to which each statement
applies to you according to the following scale (1=strongly disagree …….5= strongly agree).

No Statement
Strongly
disagree
disagree
Neither agree
Nor disagree
Agree
Strongly
agree
1 I feel using Internet stock trading is a wise idea. 1 2 3 4 5
2
I like to use Internet stock trading in Iran stock
market.
1 2 3 4 5
3
Conducting Internet stock trading is interesting and
exciting for me
1 2 3 4 5
4
I get pleasure if I can conduct Internet stock trading

electronically
1 2 3 4 5
5
I believe that conducting Internet stock trading is a
good and effective idea
1 2 3 4 5
6
I think these days; using internet for stock trading is
a necessity.
1 2 3 4 5

Section 3: Please indicate your answer by circling the number that reflects the degree to which each statement
applies to you according to the following scale (1=strongly disagree …….5= strongly agree).

No Statement
Strongly
disagree
disagree
Neither agree
Nor disagree
Agree
Strongly
agree
1
Most people who are important to me would think
that using the internet stock trading is a wise idea
1 2 3 4 5
2
It is expected of me that I use internet for stock
trading…

1 2 3 4 5
3
The view of close friends is very effective for me
when they think that the use of internet is useful and
necessary…
1 2 3 4 5
49 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

Section 4: Pleas tick(/) the response that best reflects your beliefs with respect to Internet stock trading
between 1 and 5 (1=strongly disagree 5=strongly agree).


Section 5: The following statements measure your beliefs related to Attitude toward behavioral. Please indicate
the response that best reflects your beliefs.

No Statement
Strongly
disagree
disagree
Neither agree
Nor disagree
Agree
Strongly
agree
1
I am not confident over the security aspects of
internet stock trading in Iran….
1 2 3 4 5
2
Other will know information concerning my Internet

stock trading transaction…
1 2 3 4 5
3 The security of online stock trading not guaranteed. 1 2 3 4 5
4
There are no strict laws and order to supervise over
Internet violation…
1 2 3 4 5
5
Advances in Internet security technology provide for
safer Internet stock trading ….
1 2 3 4 5
6
The government interference in Internet affairs in
Iran leads to distrust in electronic transaction
1 2 3 4 5
7
There is significant risk in the decision to transact in
Internet stock trading ….
1 2 3 4 5
8
There is high potential for loss in the decision to buy
stock using Internet stock trading …
1 2 3 4 5

Section 6: Pleas tick(/) the response that best reflects your beliefs with respect to Internet stock trading
between 1 and 5 (1=strongly disagree 5=strongly agree).

No Statement
Strongly
disagree

disagree
Neither agree
Nor disagree
Agree
Strongly
agree
1
My interaction with the internet stock trading
system is clear and understandable…
1 2 3 4 5
2
I believe learning to use the internet stock trading
system is easy for me…
1 2 3 4 5
3
It would be easy for me to become skillful at
using internet stock trading…
1 2 3 4 5
4
I am willing to learn internet stock trading
transactions because of its being easy to learn
and its facility to use
1 2 3 4 5
5
I believe that is no important complexity in
conducting online stock trading….
1 2 3 4 5
No Statement
Strongly
disagree

disagree
Neither agree
Nor disagree
Agree
Strongl
y agree
1 I would be able to operate internet stock trading 1 2 3 4 5
2
I think I have the required potentials to use internet
stock trading…
1 2 3 4 5
3
Before deciding on whether or not to use internet
stock trading, I want to be able to use it on a trial
basis to see what it can do…
1 2 3 4 5
4
I want online stock trading to be available to me to
adequately test run its services before deciding on
whether or not to use it…
1 2 3 4 5
50 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

Section 7: Please indicate your answer by circling the number that reflects the degree to which each statement
applies to you according to the following scale (1=strongly disagree …….5=.strongly agree).

No Statement Strongly
disagree
disagree
Neither agree

Nor disagree
Agre
e
Strongl
y agree
1 I think the use of internet stock trading transaction
would save time for me…
1 2 3 4 5
2 Using internet stock trading system makes it easer for
me to conducting my stock trading transaction.
1 2 3 4 5
3 I fell the use of Internet in stock trading transactions
can be very effective and useful …
1 2 3 4 5
4 I think online stock trading enable me to complete my
transaction activities more quickly conveniently …
1 2 3 4 5
5 The use of Internet in stock trading transactions would
reduce expenses investors and stock brokers.
1 2 3 4 5

Section 8: Plese indicate your answer by circling the number that reflects the degree to which each statement
applies to you according to the following scale (1=strongly disagree …….5=.strongly agree).

No Statement
Strongly
disagree
disagree
Neither agree
Nor disagree

Agree
Strongl
y agree
1
I think I have the potential of conducting Internet
stock transactions if the required facilities are
available…
1 2 3 4 5
2
I could conduct my stock trading system if I had
seen someone else using it before trying it myself….
1 2 3 4 5
3
I could conduct my stock trading transactions using
the Internet stock trading If someone helps me….
1 2 3 4 5
4
I think I can complete Internet transactions if
someone helps me get started
1 2 3 4 5
5
I am confident of using Internet stock trading even if
I have never used it before…
1 2 3 4 5
6
If I have only the online instructions for reference I
am confident of using internet stock trading….
1 2 3 4 5
7
I think I conduct Internet stock trading when it is

necessary and obligatory
1 2 3 4 5
8
I think if I decide for use internet stock trading, I am
confident can do it…
1 2 3 4 5
51 European Journal of Economics, Finance And Administrative Sciences - Issue 19 (2010)

Section 9: The following statements measure your beliefs related to self-efficacy and knowledge. Please
indicate the response that best reflects your beliefs between 1 and 5(1=strongly disagree .5=.strongly
agree).

No Statement
Strongly
disagree
disagree
Neither agree
Nor disagree
Agree
Strongly
agree
1
I believe I have enough recognition to conduct
Internet stock trading transaction
1 2 3 4 5
2
I believe the process of conducting electronic
transactions are understandable and quit clear
1 2 3 4 5
3

I believe my previous learning is enough to
conduct internet stock trading…
1 2 3 4 5
4
I believe I know all the present challenges well for
the performance of internet transaction
1 2 3 4 5
5
I Think that I am completely aware of all the
dangers and problems for performing internet
transaction…
1 2 3 4 5
6
I believe, I have enough knowledge for conduct
internet stock trading.
1 2 3 4 5

Section 10: Please indicate the response best reflecting your intention to use online stock trading (or intention to
continue using internet stock transaction, for those who have used it). 1=strongly disagree .5=
strongly agree).

No Statement
Strongly
disagree
disagree
Neither agree
Nor disagree
Agree
Strongly
agree

1
I intend to use/continue using Internet stock
trading in the future…
1 2 3 4 5
2
I am prepared to conduct internet transaction if
apposite conditions for electronic transactions are
provided in my country
1 2 3 4 5
3
I will add internet stock trading to my favorite
links…
1 2 3 4 5
4
Given that I have access to Internet stock trading,
I predict I would use it…
1 2 3 4 5
5
I plan for conducting Internet stock trading in
future…
1 2 3 4 5
6
I believe that the performance of internet
transactions will become an obligation in near
future
1 2 3 4 5