Unveiling The Determinants And The Effects Of Online Social Networks (OSNs) On The Capital Market Investment Decisions:Individual,Institutional Investors’ And Virtual Communities Context

The channel for information dissemination has expanded due to the prompt advancement of information and communication technology.Previously,traditional media,personal connections,and trade-related publications were the basis of investment decisions in the capital market.Recently,the active users of social media have increased tremendously,that represents 45%(3.85 billion)of the world’s total population.Due to the rapid emergence of online social networks(OSNs),virtual communities have evolved profusely as popular forums for communication and entertainment,and increasingly affected the users’ particularly the capital market investors’ investment decision.Subsequently,OSNs have been evolved effusively as emerging information dissemination platform around the world.The insinuation of OSNs for investors(individual and institutional)investment decisions in the capital market cannot elude in today’s world.To date,scholars have not widely examined the adoption of this platform among the investors for capital market investment decisions as well as a distinctive model for decision making in the virtual environment is scarce.This thesis attempts to identify the determinants leading to the adoption of OSNs and the extent of the effect of each antecedent on investors’ investment decisions in the capital market along with the development of the virtual community’s decision model(VCDM).For study 1 and 3,510 data collected from individual capital market investors using online and offline structured questionnaires,and for study2,285 data collected from institutional investors through online questionnaires in Bangladesh.Structural Equation Modeling(SEM)is used for data analysis.The first study developed a conceptual model for behavioural finance integrating technology acceptance model(TAM)and valence framework from information systems and marketing discipline respectively and added some persuasive constructs from social capital and diffusion innovation theory.The study determined that the proposed integrated model with additional constructs outperforms other models.Perceived usefulness,perceived enjoyment,trust,and personal innovativeness in IT(PIIT)have a substantial effect on the investor’s intention to use OSNs for a capital market investment decision.Utilitarian value is a more robust predictor of intention to use OSNs than Hedonic value.Intention to use OSNs properly mediates the relationships and has a robust impact on investor’s investment decisions.A strong association explored between OSNs use and investment decision.However,perceived ease of use and perceived risk have no significant direct effect on the intention to use OSNs.Gender moderates the relationships of different constructs with the intention to use OSNs.The second study proposed a comprehensive framework for institutional investors based on TAM,Valence framework,Institutional theory,Resource-based view,FASB framework,and Transaction cost theory.The mixed-method approach,consisting of expert interviews and field surveys,is put forward.The study determined that the proposed comprehensive model outperforms other models.The result of the structural model identifies proposed determinants(e.g.,institutional pressure and costbenefit dimension)along with perceived usefulness are strong predictors of OSNs and significantly affect the institutional investors’ capital market investment decision.Another proposed construct(e.g.,situational context)and perceived ease of use are indirect determinants of intention to use OSNs.Intention to use OSNs actively leads to the capital market investment decision.Interestingly,it explores that the proposed path between situational context and perceived usefulness are strongly significant.Stimulatingly suggested moderator,namely organizational IS capability,significantly moderates the different relationships of the unified model.Surprisingly,perceived risk has not a substantial impact on OSNs adoption.These two studies indicated that both types of investors accept the OSNs as an information dissemination platform and use the disseminated information over the OSNs for their investment decision in the capital market.The third study examined 16 well-established theories/models of information technology,social science,marketing,and behavioural finance and extracted nine constructs from 58 identified constructs considering theoretical cohesiveness along with the three-stage method proposed by Moore and Benbasat(1991).The virtual communities’ decision model(VCDM)is developed and validated using the collected data.The upshot implies that VCDM outperforms the majority of the theoretical models and explain the maximum variances in intention to decision and investment decision.The acceptance levels of fit indices and all significant relationships among different constructs are also empirically validated.The moderating effect of virtual group use experience is also confirmed.The VCDM is parsimonious,and expediencies model for virtual environment context whereas existing models/ theories seemed to be inapt for this setting.This thesis provides reliable insights for OSNs service providers,regulatory authorities,decisionmakers,and virtual community’s users.It will significantly enrich MIS,behavioural finance,social media,marketing,and information systems knowledge and researchers.