Does Online Trading Affect Investors’ Trading Intention?

Abstract

The purpose of this study is to investigate the relationships and effects of online trading, the illusion of knowledge and control, information processing cost, trading intention, and expected performance. The research findings’ show that online trading itself will increase investors’ trading intentions, information processing cost, and illusion of knowledge and control. Also, the information processing cost and the illusion of knowledge and control will further raise investors’ expectations about future performance directly and indirectly via trading intention, meaning that online trading tends to make investors become overconfident about their future expected performance.

Keywords: Online Trading, Illusion of Knowledge, Illusion of Control, Information Processing Cost

JEL Classification: D83, G02, G11