International Journal of Emerging Markets

Applicability of theory of planned behavior in predicting intention to trade online:

Some evidence from a developing country
M. Gopi T. Ramayah
Article information:
To cite this document:
M. Gopi T. Ramayah, (2007),"Applicability of theory of planned behavior in predicting intention to trade
online", International Journal of Emerging Markets, Vol. 2 Iss 4 pp. 348 - 360
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IJOEM
2,4 Applicability of theory of planned
behavior in predicting intention
to trade online
348
Some evidence from a developing country
M. Gopi and T. Ramayah
School of Management, Universiti Sains Malaysia, Penang, Malaysia

Abstract
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Purpose – The purpose of this paper is to identify factors that influence the intention to use internet
stock trading among investors in Malaysia.
Design/methodology/approach – A structured questionnaire was used to collect data from
investors who are aware of internet stock trading in Malayisa. Out of 300 questionnaire only 144 were
usable.
Findings – Findings show that attitude, subjective norm and perceived behavioral control has a
direct positive relationship towards behavioral intention to use internet stock trading. The theory of
planned behavior can be used to explain variation in behavioral intention and actual usage.
Research limitations/implications – More variations of results could be gained through a wider
coverage of respondents. Other factors such as descriptive norm and perceived usefulness should be
used to increase the explanatory power of the dependent variable. A comparison of the same study of
explanatory power between other intention-based model could give another valuable contribution.
Practical implications – This study will provide information on factors that influence and affect
investor’s intention to use online stock trading. In addition, the result of the study could serve as a
guideline by online stock broking organizations in understanding the factors and program that need to
be instilled to increase online stock trading among current retail investors and future investors.
Originality/value – Not much has been written on understanding intention to use internet stock
trading in a developing country.
Keywords Internet, Stocks, Individual behaviour, Developing countries, Malaysia
Paper type Research paper

Introduction
Internet, the new medium that has emerged as a result of convergence between
telecommunication and computers, is revolutionizing the way business is done and is
making inroads into every conceivable area of business activity. The online financial
services offered by banks and financial firms have been changed with the emergent of
internet. Internet-based stock trading is where the issuers of securities, intermediaries,
service providers and investors are selling and dealing securities services on the
internet. Investors would now be able to acquire or sell shares or stocks from anywhere
by just using internet-based order submission protocols.
International Journal of Emerging When K. Aufhauser & Co. executed the first internet stock trade in 1994, there was
Markets little excitment witnessed from the public (Gasparino and Buckman, 1999). Far from it
Vol. 2 No. 4, 2007
pp. 348-360 being deemed as a hype catering to only a small segment of investors, its potential
q Emerald Group Publishing Limited
1746-8809
benefits of low transaction cost, high accesibility, real time to market information and
DOI 10.1108/17468800710824509 having total control over ones financial state have revolutionized the securities market.
 Online stock trading was embraced in Malaysia in 1995, when Bursa Malaysia Applicability of
(Malaysian Stock Exchange) launched the Electronic Client Ordering System (ECOS). theory of
ECOS is an electronic means for stock broking firms to route orders from clients
through proprietary or open system to the Malaysian stock exchange. Although online planned behavior
stock trading has been available in Malaysia for the past ten years, only 2 percent of
the total retail securities trading in Malaysian Stock Exchange comes through the
internet (Sani, 2005). This is way below the turnover from internet stock trading in 349
other major stock exchanges in the Asia Pacific such as South Korea and Japan where
the internet stock trading constitutes around 80 percent of the total retail securities
eventhough online stock trading was introduced in South Korea only in the mid-1997
and in Japan during late 1998. Our closest neighbors also have higher turnover, with
Singapore and Hong Kong whose total turnover on the respective stock exchange done
through online is around 8-10 percent with the time of introduction of internet stock
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trading in Singapore Stock Exchange in 1996 and Hong Kong in the late 2000.
With the increase in online offerings, the need to predict behavioral intentions of
consumers has also increased. This study will provide information on factors that
influence and affect investor’s intention to use online stock trading. In addition, the
result of the study could serve as a guideline for online stock broking organizations in
understanding the factors and programs that needs to be instilled to increase online
stock trading among current retail investors and future investors.

Literature review
Theory of planned behavior
The theoretical model employed in this research is based on theory of planned behavior
(TPB) (Ajzen, 1991). The TPB (Ajzen, 1991) is an extension of theory of reasoned action
(TRA) and was established to answer the limitation in the TRA (Fishbein and Ajzen,
1975; Ajzen and Fishbein, 1980). TPB deals with behavior where individual have
incomplete faculty of using one’s will or situation where they have incomplete control of
their behavior (Ajzen, 1985, 1991, 2002). An extension of TRA, TPB is composed of
attitude towards the behavior, social factor called subjective norm and an added variable
which is the degree of perceived behavioral control (PBC) (Ajzen, 1985, 1991, 2002). PBC
is the additional construct that was added to solve the limitations in TRA (Ajzen, 1985,
1991, 2002). The TPB model developed by Ajzen (1985) is shown in Figure 1.

Hypotheses development
Perceived behavioral control. The control belief in TPB is represented by PBC. The
construct of PBC was added into the model to answer the limitations of TRA (Fishbein
and Ajzen, 1975; Ajzen and Fishbein, 1980), in an effort to deal with situations where
individuals may lack complete volitional control over the behavior (Ajzen, 1991, 2002).
PBC is defined as, given the presence or absence of requisite resources and opportunities,
the individual’s perception of the ease or difficulty in performing the behavior of interest
(Ajzen, 1991). In summary, the performance of a particular behavior is correlated to the
confidence of the individual in his/her ability of performing the behavior (Ajzen, 1991).
PBC is based partly on past experience and partly from second hand information
through the exchange of information by family, friends and factors that may control the
level of perceived difficulty of performing the behavior of interest (Ajzen, 1991). Given the
increase in resources (time, computer, network and money) and opportunities, the greater
 IJOEM
2,4 Attitude

Subjective Behavioral Actual

Norm Intention Usage
350

Perceived
Behavioral
Figure 1. Control
Theory of planned
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behavior
Source: Ajzen (1985, 1991, 2002)

is the perceived control of the particular behavior (Ajzen, 1991) and thus the more likely is
the performance of the behavior, in this case online stock trading transactions.
Researches have shown that PBC accounted for considerable variance in intention and
behavior and there is a positive relationship between PBC and intention (Mathieson,
1991; Taylor and Todd, 1995; Lee and Ho, 2002; Teo and Pok, 2003; Shih and Fang, 2004;
Yulihasri, 2004; Ing-Long and Jian-Liang, 2005; May, 2005; Jen-Ruei et al., 2006). Thus,
with the given resources the higher the confidence of his/her ability, the more likely and
individual is in buying stocks through the internet. Hence, the hypotheses formulated are:
H1. PBC will be positively related to intention to use.
H2. PBC will influence usage.
Subjective norm. Subjective norm is an original construct from TRA, that deals with
the influence of social environment or social pressure on the individuals and thus on
behavioral intention (Fishbein and Ajzen, 1975). Subjective norm is defined as the
individual’s perception of the likelihood that the potential referent group or individuals
approve or disapprove of performing the given behavior (Fieshbein and Ajzen, 1975;
Ajzen, 1991). Subjective norm is shown as a direct determinant of behavioral intention
in TRA (Fishbein and Ajzen, 1975), TPB (Ajzen, 1991) and DTPB (Taylor and Todd,
1995). The rationale to this, under significant social influence and social pressure, an
individual would perform the behavior eventhough the individual is not in favor of
performing the behavior (Venkatesh and Davis, 2000).
Studies have shown mixed result regarding subjective norm as a predictor of
intention. Studies have shown no significant relationship between subjective norm and
intention (Davis et al., 1989; Mathieson, 1991; Chau and Hu, 2001; Lewis et al., 2003)
and some studies have shown significant relationship between subjective norm and
intention (Taylor and Todd, 1995; Venkatesh and Davis, 2000; Teo and Pok, 2003;
Ramayah et al., 2003, 2004; Ma’ruf et al., 2003; Yulihasri, 2004; Chan and Lu, 2004; May,
2005; Jen-Ruei et al., 2006).
Apart from TAM, model using the TRA, TPB and DTPB framework has shown
subjective norm to have significant relationship with intention. Hence, it can be said
subjective norm to have significant effect on intention to use internet stock trading.
Thus, the hypothesis proposed is:
 H3. Subjective norm will be positively related to intention to use. Applicability of
Attitude. Attitude have long been identified as a construct that guides future behavior theory of
or the cause of intention that ultimately leads to a particular behavior. In TRA, attitude planned behavior
is referred as the evaluative effect of positive or negative feeling of individuals in
performing a particular behavior (Fishbein and Ajzen, 1975). The more recent
definition of attitude is the degree of favorableness and unfavorableness of an
individuals feeling towards a psychological object (Ajzen and Fishbein, 2000). 351
The two components of attitude is attitude towards physical object (internet,
computer) and attitude towards behavior or performing particular action (using
internet for stock trading) (Ajzen, 1987, Ajzen and Fishbein, 2005). In the field of
internet stock trading the more positive the attitude an individual has towards the
object and behavior, the more likely is the behavioral intention and performance of the
behavior. Many studies have shown the significant effect of attitude towards intention
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(Davis et al., 1989; Mathieson, 1991; Taylor and Todd, 1995; Lu et al., 2003; Shih and
Fang, 2004; Rhodes and Courneya, 2003; Ma’ruf et al., 2003; Ramayah et al., 2003; Teo
and Pok, 2003; Ramayah et al., 2004; Eri, 2004; Ramayah et al., 2005; Ing-Long and
Jian-Liang, 2005; May, 2005; Ramayah and Mohd. Suki, 2006). Hence, the proposed
hypotheses is:
H4. Attitudes towards using internet stock trading will be positively related to
intention to use.
Behavioral intention. Intention is defined as the perception of an individual towards
performance of a particular behavior (Fishbein and Ajzen, 1975). In TRA, Fishbein and
Ajzen (1975, pp. 288) intention is defined, “as a persons location on a subjective
probability dimension involving a relation between himself and some action”. In TRA
(Fishbein and Ajzen, 1975; Ajzen and Fishbein, 1980), intention is predicted by attitude
and subjective norm. Later in the extension of TRA, the TPB (Ajzen, 1985, 1991, 2002)
and the DTPB (Taylor and Todd, 1995) the antecedent of intention are attitude towards
the behavior, subjective norm and the degree of PBC. Meanwhile in TAM (Davis, 1986,
1989; Davis et al., 1989) the antecedent of intention are perceived usefulness, perceived
ease of use and attitude and for the integrated DTPB (Chau and Hu, 2001) the
antecedents of intentions are perceived usefulness, perceived ease of use, attitude
towards behavior, subjective norm and PBC.
When behavior is under the individual’s control, intention can predict actual
behavior with significant accuracy (Ajzen, 1988) but this does not mean that the
measure of intention and behavior is in perfect correlation (Fishbein and Ajzen, 1975).
There always exists strong biasness for individuals to overestimate the likelihood of
performing desired behavior and underestimate the likelihood of not performing
undesired behavior. In turn this overestimates and underestimates is believed to cause
inconsistencies between intention and the actual action (Ajzen et al., 2004). Behavior
and intention shows high correlation if the interval time between the intention and the
behavior is low (Fishbein and Ajzen, 1981).
Studies also show that the interval period between intention and behavior correlates
with the variance explained by the intention based model, like voting for presidential
candidate (Fishbein and Ajzen, 1981), choice of feeding method for newborn babies
(Manstead et al., 1983), reaction to system used in trial basis (Davis et al., 1989), perceived
near-term usefulness (Chau, 1996) and condom use (Sheeran and Orbell, 1998;
 IJOEM Albarracin et al., 2001). Intention is known to change overtime, the greater the interval
2,4 period between intention and behavior, the greater the likelihood of changes in intention
(Ajzen, 1985). The last hypothesis was formulated as follows:
H5. Intention to use will lead to actual usage.
Behavior. Behavior in the intention-based model is referred as a manifestation which is
352 observable, single-act criterion which is performed (not-performed) with respect to a
specific target in a given situation at a given point of time (Fishbein and Ajzen, 1975).
How hard individuals are willing to try, the effort the individuals are planning to exert
to perform the particular behavior is the motivational factor captured in intention that
subsequently influence behavior (Ajzen, 1991). Behaviors leading up to the attainment
of goal are made up of intermediate goals with their own problem of executions (Ajzen,
2002).
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As stated earlier the accuracy of behavior prediction will usually decline with the
increase in time that intervenes between measurement of intention and observation of
behavior (Ajzen, 1985). Ajzen and Fishbein (2005) has identified four factors that leads
to poor correlation between intention and behavior or the factors that influence the
strength of behavior:
(1) low intention-behavior relation;
(2) stability of intention;
(3) intention-behavior compatibility; and
(4) literal inconsistency.

There would be very low correlation between intention and behavior, if the time
interval (stability of intention) between intention and behavior is high, there is lack of
compatibility between measures of intention and behavior (intention-behavior
compatibility), when individuals do not act on their stated intention (literal
inconsistency) and there is low intention-behavior relation (Ajzen and Fishbein,
1980, 2005).

Research model
Based on the above literature and discussion the research framework and the
hypotheses generated are shown in Figure 2.

Attitude H4

Subjective H3 Behavioral H5 Actual

Norm Intention Usage

H1

Figure 2. Perceived H2
Research model and Behavioral
hypotheses Control
 The TPB asserts that intention is jointly determined by one’s attitude, which reflects Applicability of
positive feelings towards performing behavior, subjective norm which reflects theory of
perceptions that other people desire the individual to perform a particular way; PBC
which reflects internal and external constraints on the act of performing the behavior planned behavior
(Jen-Ruei et al., 2006). In this study, we also posit that users will be more willing to trade
online if they have a positive attitude towards online trading, they also want to comply
witht the wishes of those close to them and they perceive that they have all the 353
resources required to perform online trading.

Methodology
Sample and procedure
Data for this study was collected through structured questionnaires. The
questionnaires were distributed to remisiers and dealers and subsequently passed
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on to investors who are aware of internet stock trading. A total of 150 responses were
obtained from 300 questionnaires. From the 150, six were discarded due to incomplete
data giving the final response rate of 48 percent.

Variables and measurement

All instruments were adapted from various literatures and were modified for the
adaptation to the internet stock trading context. The dependent variable, behavioral
intention was measured using four items derived from Shih and Fang (2004).
Responses were measured using seven-point Likert type scale anchored by “very
unlikely” (1) to “very likely” (7) with “neutral” (4) as middle point. Meanwhile for the
independent variable items with seven-point Likert type scale was used to measure,
with scale ranging from “strongly disagree” (1) to “strongly agree” (7). Items for
attitude towards behavior were derived from Shih and Fang (2004). The item
for subjective norm and PBC measurement were derived from Shih and Fang (2004).
For the measurement of usage we used a dichotomous measure of use/do not use as
this is a new way of trading. As this is a new technology, the usage level is still not
very high as such asking usage level on a scale would not be viable as most would be
reporting not using or use at a very low level.

Analysis and result

The respondents comprised mainly of male, 93 respondents (64.6 percent) and 51 females
(35.4 percent). The ethnicity distribution of the respondents is Chinese, 122
respondents representing 84.7 percent, Malay representation of 6.3 percent and the
Indian and other races representation of 9.0 percent. The ethnicity distribution of the
respondents correlates with the data from the remisiers who indicates the distribution of
investors are 80 percent Chinese, and the rest 20 percent represented by Malay, Indian,
other races and foreigners. This data is obtained through informal interview as the data
is seen as a very sensitive issue by the Malaysian Government. The mean (average) age
of the respondents is 39.2 years with standard deviation of 9.95 years. In the educational
level analysis, bachelor degree holders comprise of 71 (49.3 percent) respondents,
diploma holders and secondary school leavers with 28 (19.4 percent) respondents each
and master degree holders and higher with 13 (9 percent) respondents. In terms of
income, most were earning RM1,501 to 3,000 per month with 47 percent. Most of the
 IJOEM respondents are attached to the private sectors (73.6 percent), government sectors were
2,4 7.6 percent and the rest 18.8 percent are those who are self employed or retiree.
In the internet usage analysis, 89.6 percent of the respondents are owners of
personal computers and 10.4 percent of respondents do not own personal computer. In
analysis about the awareness of internet stock trading, all of the respondents are aware
of internet stock trading. With the high percentage of awareness, only 34.7 percent of
354 the respondents are users of internet stock trading systems meanwhile 65.30 percent
are not the users of internet stock trading system. Internet stock trading usage in a
month averages about 4.3 times with the number of transaction made per time of usage
are 1.3 transactions.

Goodness of measure
Factor analysis is a data reduction technique and also used to determine whether items
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are tapping into the same construct. During factor analysis, factors with eigenvalue of
less than one would be rejected and factors with eigenvalue of more than one would be
retained for further analysis (Hair et al., 2006). Furthermore, during factor analysis, if
the eigenvalue is close to 1 than the factor could be considered for inclusion (Hair et al.,
2006). To reduce the problem of cross loading, if the differences of loadings of any item
across factors were less than 0.10 than the items will be deleted (Snell and Dean, 1992).
Next reliability testing was applied, to determine the degree to which measures are
free from random errors. Cronbach’s a reliability analysis was applied to identify how
well the items grouped are positively correlated to one another. Cronbach’s a value of
0.70 and above is considered to be reliable (Nunnally and Bernstein, 1994). An a value
of 0.70 and above indicates items are homogenous and measuring the same construct.
Hair et al. (2006) suggested that a value of 0.60 would be deemed the lower value of
acceptability. The result of the factor and reliability analysis is presented in Table I.
Factor analysis was conducted on items from attitude, subjective norm and PBC.
The percentage of variance criterion is an approach based on achieveing a specified
cumulative percentage of total variance extracted by successive factors (Hair et al.,
2006). The purpose is to ensure practical significance for the derived factors by
ensuring that they explain at least a specified amount of varaince although there is no
absolute threshold, in social science research where the measurements are less
imprecise solutions that account for 60 percent of the total varaince or even less is
sometimes considered satisfactory (Hair et al., 2006). Based on the above criterion, from
the 13 items, 11 items loaded on three factors. Five items which form subjective norm
was loaded in factor 1 with a variance of 59.252 percent, two items from attitude loaded
on factor 3 with 7.207 percent and four items from PBC loaded on factor 2 with a
variance of 18.048 percent. The total variance achieved is 84.507 percent. Furthermore,
all the Cronbach’s a values were above 0.90.

Research findings
Multiple regression
Multiple regression analysis was conducted to test the relationship between attitude
towards behavior, subjective norm and PBC toward behavioral intention in using
internet stock trading. The first stage multiple regression analysis will also be testing
H1, H3 and H4.
 Applicability of
Items Loading Communality a
theory of
F1 – subjective norm planned behavior
Most people who are important to me would think
that using the internet stock trading is a wise idea 0.683 0.743
Most people who are important to me would think I
should use internet stock trading 0.841 0.836 355
My family who are important to me would think that
using the internet stock trading is a wise idea 0.876 0.857
My family who are important to me would think that
using the internet stock trading is a good idea 0.909 0.897
My family who are important to me would think I
should use internet stock trading 0.897 0.863
(Eigenvalue ¼ 7.703; variance ¼ 59.252 percent) 0.945
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F2 – attitude towards behavior

I feel using internet stock trading is a wise idea 0.857 0.907
I feel using internet stock trading is a good idea 0.862 0.920
(Eigenvalue ¼ 0.937; variance ¼ 7.207 percent) 0.952
F3 – PBC
I would be able to operate internet stock trading 0.849 0.796
I have the resources to use internet stock trading 0.890 0.835
I have the knowledge to use internet stock trading 0.895 0.873 Table I.
I have the ability to use internet stock trading 0.923 0.895 Factor and reliability
(Eigenvalue ¼ 2.346; variance ¼ 18.048 percent) 0.941 analysis (antecedents of
Total variance ¼ 84.507 percent behavioral intention)

The multiple regression analysis model was significant ( p , 0.01) with F-value of
59.682. The coefficients of determination (R 2) is 0.561, which indicate that 56.1 percent
of the variation in behavioral intention to use internet stock trading is explained by the
independent variables (attitude, subjective norm and PBC). Meanwhile the adjusted R 2
value was 0.552.
The multiple regression analysis in this stage also indicates that the tested variables
are significant at p , 0.05. The b-values (standardized coefficients) for each of the
variables are as follows: PBC (b ¼ 0.215), subjective norm (b ¼ 0.303) and attitude
(b ¼ 0.357) indicating that the independent variables were all positively related to
behavioral intention to use internet stock trading.
Also from the first stage of the multiple regression analysis, all the hypotheses
tested was supported. H1 (PBC is positively related to behavior intention), H3
(subjective norm is positively related to intention) H4 (attitude is positively related to
intention) were supported. Table II list the result of the multiple regression.
Discriminant analysis was conducted to test the relationship of behavioral intention
and PBC towards actual usage of internet stock trading. This was done as the measure
of usage was “use/don’t use” as such discriminant analysis is the most suitable
technique. From the analysis it was found that the model was significant at p , 0.01
with the value of x 2 of 15.239. From the discriminant analysis it was also found that
the variance in the actual usage of internet stock trading can be explained by the both
constructs, behavioral intention and PBC. Both the variables (intention and PBC) were
significant predictors of actual usage so H2 and H5 were also supported.
 IJOEM
Variable Standardized b
2,4
Model variables
PBC 0.215 * *
Subjective norm 0.303 * *
Attitude 0.357 * *
356 F 59.682 * *
R2 0.561
Table II. Adjusted R 2 0.552
Result of multiple
regression analysis Notes: *p , 0.05, * *p , 0.01

Discussion
This study has shown attitude towards behavior, subjective norm and PBC have direct
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significant positive relationship with behavioral intention to use internet stock trading.
The direct positive relationship of attitude, subjective norm and PBC is in line with
researches conducted by Taylor and Todd (1995), Mathieson (1991), Ajzen (1991, 2002),
Ramayah et al. (2003), Ma’aruf et al. (2003), Yulihasri (2004), May (2005), Ing-Long and
Jian-Liang (2005), Ramayah and Mohd. Suki (2006), and Jen-Ruei et al. (2006)
In the current study attitude is found to be the most important factor in predicting
behavior intention towards internet stock trading. Attitude plays a crucial role in
acceptance of internet stock trading. Favorable attitude could enhance the behavior
intention and thus the actual behavior towards internet stock trading. Real-time stock
prices and monitoring, portfolio management, various kind of financial planning and
information, open for 24 hours a day and investors would able to acquire or sell shares
or stocks from anywhere by just using internet-based order submission protocols are
just a few offerings that increases the favorable attitude towards internet stock trading.
By highlighting the advantages favorable attitude towards internet stock trading
could be formed. And thus with favorable attitude the more likely is the actual usage of
internet stock trading.
Social pressure is accepted as a construct that influences behavior intention towards
internet stock trading in this study. From this study it can be concluded that internet
stock trading could be increased if the investors perceive that most of the people who
are important to him/her want the investor to use internet stock trading. Even though
information about internet stock trading is available, they are incomplete as
the information does not address the security, privacy and many other factors, the
influence of those who are relevant would have a great impact on internet stock trading
usage. With the incomplete information, potential adopters would tend to rely on
information from referent group or individuals as a trusted information source about
internet stock trading. With positive information and social pressure potential
adopters could be influenced by the referent group or individuals, the more likely is the
behavioral intention to use internet stock trading.
PBC is also proven to be an antecedent of behavioral intention to use internet stock
trading. Most of the investors in Malaysia would have some sort of experience in
accessing the internet for the latest share/stock information, foreign stock market and
Malaysia market condition, internet banking, online bill payment, online purchasing
and many other forms of internet transactions. Thus, with the experience the investors
have, they would feel that internet stock trading is a matter that is within their own
 boundary of control. Thus, with high- PBC the more likely is the actual usage of Applicability of
internet stock trading. theory of
planned behavior
Managerial implications
Given the importance of attitude in predicting behavioral intention towards internet
stock trading, stock brokerage house could provide all the relevant information
towards enhancing favorable attitude. Organizations can focus on advantages of 357
performing internet stock trading such as easy access to performing stock transaction,
low fees, up to date market report and 24-hours accessibility from anywhere.
Organization can also provide special market reports, trends of the market and stocks
to increase the advantages of performing internet stock trading. Furthermore, with a
system that is easy and effective, it could increase the favorableness in attitude
towards behavior that is performing stock transaction through the internet.
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Information by the relevant others also could influence behavioral intention

towards internet stock trading. Organization could employ incentives programs to the
users of internet stock trading in introducing a non-user to use internet stock trading.
Incentives such as certain amount of free transactions, free opening of secondary
account and increase in credit limits are just a few gimmicks that could be employed to
increase stock transaction through the internet. Social pressure by the peers induced by
the incentives could influence intention to perform online stock transaction.
PBC also influences intention to use internet stock trading. Stock brokerage houses
can employ marketing efforts and training to increase the level of PBC of investors and
thus the likelihood of using internet stock trading can be enhanced. The training
provided could also increase the confidence of investors in his/her ability of performing
stock trading through the internet.

Limitation and suggestion for future research

This empirical study has several limitations. Firstly, investigation on internet stock
trading is relatively new in technology management research especially in Malaysia.
Caution should be exercised in generalizing the implications, findings and the
discussion to other studies in technology and system.
As the scope of this study is confined to the island of Penang, the sample should not
be generalized as the belief and intention towards using internet stock trading of the
whole Malaysian population. Apart from that, the sample is taken from individuals
who have experience in stock transactions and could not be used to represent
individuals who are just deciding to invest in stocks.
Finally, the findings of this study depend largely on the honesty of the respondents.
It is known that individuals would agree more on socially desirable answers and
disagree more towards socially undesirable answers rather than fully and truly
express their feelings and the opinions.

Conclusion
The main objective of this study is to identify the factors that are involved in
influencing intention to use internet stock trading. From the findings it has been
identified that attitude, subjective norm and PBC influence investors intentions
towards internet stock trading.
 IJOEM Results from this study has shed come light on which constructs in the
2,4 intention-based model can be better used to answer the managerial problem of factors
influencing intention to use internet stock trading. The insights provided by this study
could be used by organizations as a foundation to formulate strategies to increase the
usage of internet stock trading.

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About the authors

M. Gopi is an MBA student at School of Management, Universiti Sains Malaysia (USM), Penang,
Malaysia. He earned his BA (Hons) in management from University Sains Malaysia, Malaysia,
Penang, Malaysia. E-mail: gopi_muniandy@yahoo.com
T. Ramayah has an MBA from USM. Currently he is the Head of Department for Operations
Management Section at the School of Management, USM. His current research interest is in the
area of technology management and adoption in business and education. He has published in
several journals such as Information Development, Management Research News, Asian Journal
of Information Technology, Asian Academy of Management Journal, WSEAS Transactions on
Information Science & Applications, International Journal of Learning, The International Journal
of Knowledge, Culture and Change Management, International Journal of Business and Society,
SASIN Journal of Management, International Journal of Services and Technology Management
and International Journal of Services and Operations Management, International Journal of
Information and Operations Management Education, and International Journal of Business
Information Systems (forthcoming). He also serves on the editorial boards and program
committee of several international journals and conferences of repute. T. Ramayah is the
corresponding author and can be contacted at: ramayah@usm.my; ramayah@gmail.com

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