UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ NGUYEN PHUC BINH BEHAVIORAL INTENTION TO USE MOBILE STOCK TRADING: EVIDENCE FROM VIETNAM’S SECURITIES INVESTORS MASTER OF BUSINESS (Honours) Ho Chi Minh City – 2015 TIEU LUAN MOI download : skknchat@gmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyen Phuc Binh BEHAVIORAL INTENTION TO USE MOBILE STOCK TRADING: EVIDENCE FROM VIETNAM’S SECURITIES INVESTORS ID: 22130010 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr. TRAN PHUONG THAO Ho Chi Minh City – 2015 TIEU LUAN MOI download : skknchat@gmail.com i ACKNOWLEDGMENTS Firstly, I would like to express my deepest appreciation to my supervisor Dr. Tran Phuong Thao for her professional guidance, valuable advices, continuous encouragement, and support that made this thesis possible. I would like to extend deep senses of gratitude to Prof.
Nguyen Dinh Tho, Dr. Tran Ha Minh Quan, and lecturers who have taught and transferred me valuable knowledge and experiences during my time at the International School of Business, special thanks to all of my dear friends in Mbus4 class who gave me useful materials, responses and experiences to conduct this study. I would also like to express my grateful thanks to my managers, my friends, and my colleagues who participated in filling the questionnaires and/or helped send the questionnaires to their peers; to securities investors, and provided valuable information and comments for this study. Personally, I wish to express my deep gratitude to my colleagues and friends working at Vietcombank Fund Management (VCBF); Saigon Securities Inc.
Ho Chi Minh City, Vietnam, January 27, 2016 Nguyen Phuc Binh TIEU LUAN MOI download : skknchat@gmail.com ii ABSTRACT The purpose of this study is to investigate the determinants of securities investors’ behavioral intention towards using mobile stock trading. Based on a modified UTAUT (Unified Theory of Acceptance and Use of Technology) with multi-facet perceived risks and privacy concerns, a comprehensive research model was proposed. An empirical survey with a valid sample of 244 securities investors was conducted in Vietnam to test the research model. The analysis results of SEM indicated that three enablers of adopting mobile stock trading in Vietnam are UTAUT constructs (i., performance expectancy, effort expectancy and social influence), and the inhibitors are the perceptions of risk (i.
security risk, economic risk) and privacy concerns. This implies that to facilitate the behavioral intention to use mobile stock trading, securities firms need to consider securities investors’ technological perceptions, risk perceptions of this type of trading, and concerns on the disclosure of personal information upon logging in the application. The findings of this study not only have important implications for mobile commerce research, but also provide insights for securities firms and developers of mobile stock trading systems. Keywords: mobile stock trading (m-trading), UTAUT, security risk, economic risk, privacy concerns, behavioral intention to use.
TIEU LUAN MOI download : skknchat@gmail.com iii TABLE OF CONTENTS ACKNOWLEDGMETS. ii TABLE OF CONTENT.iii LIST OF FIGURES. v LIST OF TABLES. vi LIST OF ABBREVIATIONS.
vii CHAPTER 1: INTRODUCTION. Background of the study. Research objectives and research questions. Research methodology and research scope.
5 CHAPTER 2: LITERATURE REVIEW& HYPOTHESES DEVELOPMENT. Unified Theory of Acceptance and Use of Technology (UTAUT). The extended UTAUT. Behavioral intention, risk perceptions and privacy concern.
Hypotheses Derived From UTAUT. Hypotheses Derived From Risk Perceptions. Hypotheses Derived From Privacy Concern. 16 TIEU LUAN MOI download : skknchat@gmail.
Data analysis and interpretation. Validity measure by EFA (Exploratory Factor Analysis). Exploratory factor analysis. 26 CHAPTER 4: RESEARCH FINDINGS.
Confirmatory factor analysis (CFA). Composite reliability and variance extracted. The structural equation model analysis (SEM). 35 CHAPTER 5: CONCLUSION, IMPLICATION& LIMITATIONS.
Limitation and further study. 44 TIEU LUAN MOI download : skknchat@gmail.com v APPENDICES Appendix A: List of in-depth interview participants. 52 Appendix B: In-depth interview’s refinement measurement scale. 61 Appendix E: Discriptive Statistics.
64 Appendix F: CFA results. 65 Appendix G: In-depth interview for “security risk” and “privacy concerns”. 66 TIEU LUAN MOI download : skknchat@gmail.com vi LIST OF FIGURES Figure Name Page 2.1 The UTAUT model 7 2.2 Basically generalized UTAUT model of extant researches 8 2.3 Basically generalized extended UTAUT model of extant researches 8 2.4 Conceptual framework model 15 3 Research process 17 4.1 The saturated model (standardized) 28 4.2 SEM & path analysis 30 4.3 The research results estimated by SEM 31 TIEU LUAN MOI download : skknchat@gmail.com vii LIST OF TABLES Table Name Page 3.1 Final measurement scales 20 3.2 Cronbach’s Alpha test 23 3.3 EFA – KMO and Bartlett’s Test 25 3.4 EFA – Total Variance Explained 25 3.5 EFA – Pattern matrix 25 4.2 The results for reliability and variance extracted test 29 4.2 Summary of results of testing hypotheses by SEM 32 TIEU LUAN MOI download : skknchat@gmail.com viii LIST OF ABBREVIATIONS No. Abbreviation Name 1 PE Performance expectancy 3 EE Effort expectancy 4 SI Social influence 5 SR Security risk 6 FR Functional risk 7 ER Economic risk 8 PC Privacy concern 9 BI Behavioral intention 10 ICT Information communication technology 11 UTAUT Unified theory of acceptance and use of technology 12 TAM Technology acceptance model 13 TFSA Toronto Financial Services Alliance 14 SEM Structural Equation Model 15 EFA Exploratory Factors Analysis 16 CFA Comfirmatory Factors Analysis 17 PDAs Personal Digital Assistants 18 PC Personal Computer 19 MOIT Ministry of Industry & Trade 20 M-Trading Mobile Stock Trading TIEU LUAN MOI download : skknchat@gmail.com 1 CHAPTER 1: INTRODUCTION 1.
Research Background “Information technology is not the cause of the changes we are living through. But without new information and communication technologies none of what is changing our lives would be possible” (Castells, 1999, p. In the most recent decades, we have witnessed mobile technology, an important and most innovated component information communication technology (ICT), has achieved a virtual revolution. It has transformed a pure means of communication through a full set of mobile services in finance, shopping, payment, social networking, remote diagnostics, tourism, and etc., which added billions of dollars to the world economy.
Therefore, bringing new technologies to improve life and business performance seems not new at all (Chong et al. Actually, mobile technology has helped many financial institutions in various economic sectors with many opportunities to reach new and potential markets, and customers. The development of mobile applications has provided financial service providers with new channels of reaching their customers and in turn its customers have more chance to access their financial information than ever before (TFSA, 2013). One of the outstanding advantages of mobile technology is its ability to give users instant, new, and useful information at appropriate time regardless of locations (Liang & Yeh, 2009).
Without being so, mobile commerce will lose its significant economic value. As mobile-commerce uninterruptedly grows, brick-and-mortar or online financial services will be demanded to be available in mobile devices by the consumers (TFSA, 2013). Typically, securities trading, a component of financial service has also been sharply changed since first taking shape in the world due to the widespread adoption of ICT. Since introduced in 1995, online trading which is a newly innovated mode of securities trading has increased dramatically (Li, Lee & Cude, 2002).
Upon implementation of online trading, no longer do securities investors need to get out of their houses to the trading floors located at busy streets in big cities thanks to the Internet-based trading systems that covered every corner of the world. Online securities trading opened a new chapter in the establishment and development of global securities market, and it is expected to continue being a valued choice for investors (American Banker, as cited in Li et al. website-based trading and mobile-based trading) as a substitute to the traditional trading (i. direct trading at floors, phone-based trading) has unique characteristics which help the investors handle their portfolio without or less being contingent on brokers as well as preserve the personal privacy.
Online trading helps brokerage firms reduce costs by eliminating human interaction TIEU LUAN MOI download : skknchat@gmail.com 2 (Bakos et al. With online trading, buying or selling securities is only a single click on a computer mouse (Li et al. Although the Vietnamese financial market in general; and specifically the securities market have not been significantly developed, it was categorized as an attractive emerging market. Obviously, more and more foreign prominent financial institutions such as Citibank, HSBC, ANZ bank, Commonwealth bank, Bank of Tokyo, Franklin Templeton, Blackhorse, AIG, Prudential, Manulife, ….
have made entry in Vietnam market and have found success. This proves the true potential of the Vietnam’s financial market. In the integration with global playground, the Vietnamese financial institutions have been also adopting and developing online services for years. Currently there is a very limited number of financial institutions in Vietnam (only banks develop mobile banking and securities brokerage firms develop mobile securities trading) conducting their services on the basis of mobile technology.
There are some reasons that people believe in the wide and rapid adoption of mobile commerce in Vietnam. According to MOIT (2014), Vietnam is in the group of countries having high rate of mobile purchase, and the potential for mobile shopping has been realized and has great opportunities for growth. Ngo et al. (2015) indicated that researches into mobile shopping in Vietnam too few to profoundly understand the determinants of usage adoption.
Despite the benefits of mobile technology in contemporary finance, there are potential risks in association with financial transactions via mobile devices, such as hacking, misusage, and privacy concerns. Those disadvantages of mobile devices that are vulnerable to lose consumers’ money and prestige are why the usage of e-finance (i. e-banking and electronic securities trading) has not widely adopted yet. That is why behavioral intention to use mobile technology, the antecedent of actual usage, in financial service is widely studied over the world recently in tandem with the striking development of smart-phones and its applications.
Research gap Since Vietnam is still in search of its solution for the future of cashless payments (Internation Finance Corporate, 2014), mobile securities trading (hereinafter referred to as “M-Trading”) as same as other types of mobile and electronic commerce in Vietnam is still in its infancy (Ngo et al. Indeed, since 2008, as encouraged by Vietnamese government, all of Vietnam’s securities firms develop its own website, in which website-based trading is always available for the investors to execute their trading orders. Some well-known securities firms (i. Saigon Securities Inc., Hochiminh City Securities Corp., VNDirect Securities TIEU LUAN MOI download : skknchat@gmail., FPT Securities Corp., MB Securities Corp., VPbank Securities Corp., BaoViet Securities Corp., etc), even developed smart-phone-based application for its clients to conduct securities trading everywhere.
However, there are some limitations while carrying out mobile-based transactions due to its nature (Tai & Ku, 2013) as well as careful consideration of customers with regard to the risk assessment (Zhou, 2012), thus only few Vietnamese securities investors actually use M-Trading. In other words, the questions on rationales of securities investors willing or reluctant to use M-Trading and factors influencing their behavioral intention to use M-Trading in Vietnam have received increasing concerns of researchers. In the literature, many prior studies on ICT’s adoption in financial industry has been conducted up to now such as internet banking (Wang & Shan, 2012; Chong et al., 2010; Kim et al., 2007; Laforet & Li, 2005), mobile banking (Yu, 2012; Aboelmaged & Gebba, 2013), internet securities trading (Teo et al. 2004, Ramayah et al.
2009, Singh et al. 2010), online securities trading (Abroud, Choong & Muthaiya, 2010); M-Trading (Tai & Ku, 2013). Remarkably, in Vietnam’s context, there have been also many researches online banking (Chong et al., 2010); e-banking (Nguyen Duy Thanh & Cao Hao Thi, 2011; Nguyen et al., 2014); e-payment (Nguyen & Lin, 2011), mobile transfer of money (Le Van Huy & Tran Nguyen Phuong Minh, 2011); mobile-learning (Ngo & Gwangyong, 2014), personal internet banking (Hoang, 2015), mobile payment (Pham & Liu, 2015), mobile shopping (Ngo et al., 2015), but only few on e-trading of securities were conducted.