HOW DOES ONLINE TRADING TECHNOLOGY AFFECT RISK-TAKING BEHAVIOR IN INVESTORS?

Abstract

Most of the existing research on the impact of technological innovation is aimed at finding out how individuals accept certain technologies and their effects on performance. Meanwhile, research that correlates the existence of technology with economic behavior is still limited. One of the economic activities with a high intensity of technology use is investing in the stock market. With the high intensity of technology use in the stock trading process, economic behavior influenced by technology's existence will naturally be formed. Therefore, this study aims to reveal the effect of technology, especially online trading technology, on the risk-taking behavior of individual investors. The data is analyzed using a statistical method, Structural Equation Modeling (SEM). Empirical results suggest that using online trading technology makes investors' risk-taking behavior more aggressive.

Keywords : risk-taking behavior, online trading