The relationship between information and the investor decision making process: an exploratory study

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Date
2019
Authors
Creed, Anthony
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University College Cork
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Abstract
The investment landscape continues to evolve and grow across the globe. The new investor demographic are using new technologies and information sources to invest, while the availability of financial information has decreased the barriers that once existed to individual or retail investors. The advancement in financial technology (FinTech) has created new and unique ways of interacting with investment information and has opened multiple new ways of investing. However, there is uncertainty regarding what the future investing landscape will entail, from the technologies that will be used to the types of information that will be used. Reducing this uncertainty in the future of investing is critical for organisations that are looking to branch into these new emerging technologies. This thesis details research focused on the relationship between the investor and the information these investors use when making financial decisions. Multiple research methods were used throughout this thesis. These methods are Concept Centric Matrix (CCM), RepGrid Analysis, Key Informant Interviews, and Workshops. Each method was chosen to specifically address the relevant research question Looking into the future of the investing landscape involves first establishing a solid foundation on the present. The initial study sought to explore online investor behaviour in online social trading networks. This chapter of the thesis proposes an Investor Engagement Framework (IEF) to model the intention of investors to engage in social trading networks and identify the key information that investors rely on for engagement in copy trading. The next chapter focuses on the modality effect and how it can enhance an investor’s financial decisionmaking process by providing both audible and visual financial information. The Amazon Echo Show was used to develop a Proof-Of-Concept (POC) that enabled the investigation of the modality effect. The final chapter examines the key trust factors of Twitter information when used for making financial decisions by millennial investors. This chapter focuses on the development of trust between an investor and the information they view on Twitter. All research carried out in this thesis was undertaken to investigate the overall relationship between the investor and the information they use to make financial decisions. The findings of this thesis revealed that investors valued transparent and verified financial information the most when making financial decisions and contributes to the body of knowledge in both Finance and IS as to how investors engage with online social investment and copy trading.
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TAM , RepGrid , Investor decision making , Millennial investors , Modality effect , Social media , Copy trading
Citation
Creed, A. 2019. The relationship between information and the investor decision making process: an exploratory study. MRes Thesis, University College Cork.
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