Aesthetics in Stock Investments: the Mediating Role of Investor's Attitude towards Investor Relation Websites
Test Engineering and Management, Volume 83, Page No:11595-11611, May-June 2020
17 Pages Posted: 10 Jul 2020
Date Written: January 27, 2020
Purpose: The purpose of this paper is to contribute to the existing literature in behavioral finance by investigating the role played by company's investor relations website/webpage in inducing the individual investor's intention to invest in the company. The study investigates the role of aesthetics and emotions in individual‟s investment behavior.
Design/ Methodology/Approach: A set of hypotheses was developed, based on theory, and survey data were obtained from 357 retail investors in Delhi-NCR region in order to test the hypotheses. The data pertained to the individual‟s attitude towards the company's investor relations website/webpage and their willingness to invest. Structural Equation Modeling was used to test the proposed hypotheses.
Findings: Results highlight the positive influence of relative advantage, credibility, ease of use, and trust on investor's attitude towards the investor relations website. The mediating influence of attitude towards investor relations website was influenced in some proposed relationships. It was also evidenced that credibility and trust have a greater influence on attitude towards website for low internet using experience investors as compared to investors with high internet using experience.
Originality/Value: The study provides theoretical grounding and empirical evidence of the positive influence of individual‟s favourable attitude towards investor relations website on individuals' willingness to invest in company's shares. It is one of the pioneer studies in the Indian financial context and provides valuable insights to the companies to strategically design their investor relations website/webpage that deals with both functional and aesthetic aspect of information sharing and is emotionally appealing.
Research limitations: The study pertains to attitudes and behavior of individual investors only. Institutional and professional investors are beyond the scope of the paper.
Keywords: Investor Psychology, Individual Investor; Investor Relations; Attitude Towards Website; Structural Equation Modeling
JEL Classification: M49, G39
Suggested Citation: Suggested Citation