Determinants of mobile apps adoption by retail investors for online trading in emerging financial markets

• Published in: Benchmarking : an international journal Vol. 30; no. 5; pp. 1623 - 1648
• Main Authors: Nair, Parvathy S., Shiva, Atul, Yadav, Nikhil, Tandon, Priyanka
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Publishing Limited 11.05.2023; Emerald Group Publishing Limited
• Subjects: Abnormal returns; Applications programs; Behavior; Behavioral economics; Data analysis; Decisions; Emerging markets; Financial services; Financing; Heterogeneity; Hypotheses; Information technology; Internet; Investments; Mobile commerce; Mobile computing; Online securities trading; Portable computers; Research methodology; Risk perception; Securities markets; Social networks; Software; Technology; Technology Acceptance Model; Technology adoption; Technology utilization; Information and market efficiency; O330; O310; Portfolio choice; General financial markets; Financial instruments; G410; Investment decisions
• ISSN: 1463-5771; 1758-4094
• DOI: 10.1108/BIJ-01-2022-0019

PurposeThe purpose of this study is to investigate the influence of mobile applications on investment decisions by retail investors in stocks and mutual funds. This study focuses on how mobile technologies are applied on mobile apps by retail investors for e-trading in emerging financial markets.Design/methodology/approachThe study explored predictive relevance for the adoption behavior of retail investors under the Unified Theory of Acceptance and Use of Technology (UTAUT) framework. Further, goal contagion theory was applied to investigate the adoption behavior of investors towards e-trading. An adapted questionnaire was used to collect the date from April to June 2021 and data analysis was performed on 507 usable responses. The methodology adopted in this study is variance based partial least square structural equational modelling (PLS-SEM). Additionally, the study explains important and performing constructs based on the response of retail investors towards mobile app usage for investment decisions.FindingsThe study shows that effort expectancy, performance expectancy followed by perceived return were the primary determinants of behavioral intentions to use mobile applications by retail investors for e-trading. Further, habit of investors determined the adoption behavior of investors towards mobile apps. Additionally, the study revealed that perceived risk is not an important aspect for retail investors in comparison to perceived return.Research limitations/implicationsThe study in future can address to the aspect of personality traits of retail investors for technology adoption for investment decisions. Further investigation is required on addressing unobserved heterogeneity of retail investors towards technology adoption process in emerging financial markets.Practical implicationsThe study provides theoretical and practical implications for retail investors, financial advisors and technology companies to understand the behavioral pattern and mobile apps adoption behavior of retail investors in emerging financial market. The findings in the study will help broking firms to sensitize their clients for effective use of their respective mobile apps for e-trading purposes. The study will strengthen the knowledge of financial advisors to understand investment behavior of retail investors in emerging financial markets.Originality/valueThis study unfolds a novel framework of research to understand the technology adoption pattern of retail investors for e-trading by mobile applications in emerging financial markets. The present study provides significant understanding in the domain of technology adoption by retail investors under behavioral finance environment.