The effect of lockup and persuasion on online investment decisions: An experimental study in ICOs

2023 | Electronic Markets | Citations: 0

Authors: Bruckner, Moritz T.; Steininger, Dennis M.; Thatcher, Jason Bennett; Veit, Daniel J.

Abstract: Many firms use social media (SM) to solicit online investments. In this study, w ... Expand

Abstract: Many firms use social media (SM) to solicit online investments. In this study, we examine the interaction between SM attributes and online-investment attributes to determine how this interaction shapes users’ investment decisions. Specifically, we investigate initial coin offerings (ICOs) as an application domain of distributed ledger technology for peer-to-peer investment. We use signaling theory to develop a context-specific explanation for how the interplay of persuasion signals found in SM and technology-enforced lockups shapes individuals’ ICO investment decisions. To evaluate this interplay, we conducted a 2 × 2 factorial experiment with 473 participants. The results show that when an investment does not require a technology-enforced lockup, persuasion signals encourage investments in ICOs; however, when an investment requires a technology-enforced lockup, persuasion signals do not affect investments in ICOs. Furthermore, our analyses suggest that combining a technology-enforced lockup and persuasion signals reduces the ICO’s plausibility. This is the first study to investigate how the willingness to invest in ICOs is influenced by the relationship between technology-enforced lockups and persuasion signals. The findings have practical implications for individuals attempting to make sound decisions on ICO investments, policymakers regulating online investments, and firms seeking to attract investors. Collapse

Topics: internet technology crowdfunding crowdsourcing Facebook blockchain

Methods: experimental group parametric test repeated measures ANOVA experimental design cross sectional research

Theories: signaling theory

Cognitive Absorption and Trust for Workplace Collaboration in Virtual Worlds: An Information Processing Decision Making Perspective

2012 | Journal of the Association for Information Systems | Citations: 42

Authors: Chandra, Shalini; Srivastava, Shirish C.; Yin-Leng Theng

Abstract: Virtual worlds (VWs) are media-rich cognitively engaging technologies that geogr ... Expand

Abstract: Virtual worlds (VWs) are media-rich cognitively engaging technologies that geographically dispersed organizations can use as a cost effective workplace collaboration tool. Using an information processing decision making perspective and building on unique characteristics of VWs, this paper proposes a nomological net for adaptive use intention (AUI) of VWs for workplace collaborations. AUI implies intention to use a technology in a setting different from the one for which it was initially designed. We study the AUI of VWs as a workplace collaboration tool which were originally conceived as recreational gaming platforms. Decision-making literature directs us to reduction of perceived cognitive burden and minimization of risk as the two key motivations for VWs' AUI. Building on these motivations, the paper identifies cognitive absorption and user trust in VWs as the mechanisms leading to individual-level AUI decision. Drawing on social cognitive theory and literature on trust, the proposed model not only re-specifies the concept of cognitive absorption in the context of VWs but also relates it to the level of trust and usage intention for VWs. We empirically tested the proposed model via data collected from 197 VW users in Singapore. Results demonstrate the significant roles that cognitive absorption' and user trust play in VW's usage as a collaboration tool. Further, through a series of post-hoc analyses, we demonstrate the imperative need for considering both cognitive absorption and user trust together in the proposed research model for theoretical parsimony. We also discuss implications for research and practice emerging out of this study. Collapse

Topics: usage intention decision making cognitive absorption virtual world individual characteristic

Methods: survey partial least squares regression theory development mediation analysis post-hoc analysis

Theories: social cognitive theory technology acceptance model theory of reasoned action theory of planned behavior institutional theory

Decision Factors for the Adoption of E-Finance and other E-Commerce Systems

2008 | Americas Conference on Information Systems | Citations: 0

Authors: He, Fang; Mykytyn, Peter P

Abstract: The development of e-commerce relies upon customer usage intentions, and IS rese ... Expand

Abstract: The development of e-commerce relies upon customer usage intentions, and IS researchers have examined usage intentions toward various online e-commerce systems. However, these systems have been studied in prior works independently rather than comprehensively. In order to pursue better measures for predicting and explaining B2C e-finance and some other major e-commerce adoptions for customers, we conducted a comparison analysis across different online systems to advance the understanding of the adoption factors and their linkage to customer behavior. Refining from Perceived Risk Theory and existing studies, specific risk facets, customer characteristics and system characteristics were operationalized and integrated within the Technology Acceptance Model (TAM) resulting in a proposed e-finance and other e-commerce system adoption model. Collapse

Topics: electronic commerce internet technology online banking electronic finance privacy

Theories: technology acceptance model

An Empirical Investigation into the Moderating Relationship of Computer Self-Efficacy on Performance in a Computer-Supported Task

2007 | Americas Conference on Information Systems | Citations: 0

Authors: Aguirre-Urreta, Miguel

Abstract: Computers and related technologies have become pervasive in the current organiza ... Expand

Abstract: Computers and related technologies have become pervasive in the current organizational environment. Most, if not all, organizational activities are dependent on computer-based information systems, and thus effective use of these technologies is a critical factor in reaping productivity gains, improving return on IT investments, and overall organizational performance. While the impacts of computer self-efficacy on computer task-performance are well established (e.g. Johnson and Marakas, 2000; Yi and Davis, 2003) it has not yet been incorporated into the nomological net attempting to explain performance in tasks requiring the use of computer technologies. Given that successful completion of a particular organizational task depends on both technical (e.g. computer-related) and functional (e.g. task-related) abilities (Looney, Valacich, Todd and Morris, 2006), it is important to look beyond performance in computer-only tasks and accordingly position computer self-efficacy as a determinant of performance in a richer task environment. In addition, given that organizational tasks can largely vary on the level of required computer support, it becomes relevant to understand how the effects of computer self-efficacy on task performance fluctuate as the role of the computer becomes more or less prominent. Collapse

Topics: self efficacy task productivity online investing

The Social–Economic–Psychological model of technology adoption and usage: an application to online investing

2005 | Decision Support Systems | Citations: 0

Authors: Konana, Prabhudev; Balasubramanian, Sridhar

Abstract: We champion the view that a richer understanding of electronic markets is obtain ... Expand

Abstract: We champion the view that a richer understanding of electronic markets is obtained when their implications for consumers are jointly studied from social, economic, and psychological perspectives. We adopt this perspective triad to build a Social–Economic–Psychological (SEP) Model of technology adoption and usage, and apply the model to understand and explain the behavior of online investors. The SEP model provides a foundation for a multidisciplinary approach to the study of electronic markets and online consumers in the fields of MIS, marketing, and finance. Collapse

Topics: online investing technology adoption electronic market marketing management accounting

Methods: survey qualitative interview conceptual modelling field study conceptual analysis

Assessing a Firm's Web Presence: A Heuristic Evaluation Procedure for the Measurement of Usability

2002 | Information Systems Research | Citations: 228

Authors: Agarwal, Ritu; Venkatesh, Viswanath

Abstract: Web site usability is a critical metric for assessing the quality of a firm's We ... Expand

Abstract: Web site usability is a critical metric for assessing the quality of a firm's Web presence. A measure of usability must not only provide a global rating for a specific Web site, ideally it should also illuminate specific strengths and weaknesses associated with site design. In this paper, we describe a heuristic evaluation procedure for examining the usability guidelines developed by Microsoft. We present the categories and subcategories comprising these guidelines, and discuss the development of an instrument that operationalizes the measurement of usability. The proposed instrument was tested in a heuristic evaluation study where 1,475 users rated multiple Web sites from four different industry sectors: airlines, online bookstores, automobile manufacturers, and car rental agencies. To enhance the external validity of the study, users were asked to assume the role of a consumer or an investor when assessing usability. Empirical results suggest that the evaluation procedure, the instrument, as well as the usability metric exhibit good properties. Implications of the findings for researchers, for Web site designers, and for heuristic evaluation methods in usability testing are offered. Collapse

Topics: usability website human computer interaction web application electronic commerce

Methods: survey design usability testing field study descriptive statistic survey

IRRATIONAL EXUBERANCE IN ONLINE INVESTING: AN EXAMINATION OF THE ROLE OF SELF-EFFICACY IN ONLINE INVESTOR OVERCONFIDENCE

2002 | Americas Conference on Information Systems | Citations: 0

Authors: Looney, Clayton

Abstract: Empirical evidence suggests that online investing can be hazardous to one's weal ... Expand

Abstract: Empirical evidence suggests that online investing can be hazardous to one's wealth. Through analyses of historical data acquired from a large online brokerage firm, Barber & Odean (2001) propose that a variety of forces lead to undesirable investment outcomes. Although these studies provide compelling correlational evidence linking factors such as overconfidence and attribution biases, little is understood about the causal agents underlying these relationships. The proposed program of study endeavors to fill this void. This research intends to build and test theory by utilizing a Web-based information system as a basis for controlled empirical study. The brokerage simulator, designed for versatility, allows researchers to reproduce realistic situations that online investors typically confront. By combining a socio-technical approach to theorization, a robust technology, and a free simulation experiment, causal influences can emerge that would otherwise remain undiscovered in archival data. With this understanding, we can better equip investors, prescribe technological designs to facilitate quality decision making, and influence public policy. Collapse

Topics: self efficacy online investing

Understanding Trustworthiness Beliefs in Electronic Brokerage Usage

1999 | International Conference on Information Systems | Citations: 5

Authors: Menon, Nirup; Konana, Prabhudev; Browne, Glenn; Balasubramanian, Sridhar

Abstract: ... Expand

Abstract: Collapse

Topics: behavioral intention problem solving online investing marketing management electronic trading