Understanding Online Traders: Trading and Performance in Common Stock Investment

Authors

Y. C. George Lin, Department of Accounting and Information Technology, National Chung Cheng University, Taiwan, R.O.CFollow
Y. C. Elena Kang, Department of Accounting and Information Technology, National Chung Cheng University, Taiwan, R.O.CFollow
Chiung-Lin Chiu, Department of Accounting and Information Technology, National Chung Cheng University, Taiwan, R.O.CFollow

Document Type

Article

Abstract

This paper analyzed the effect of online trading on investors’ trading behavior based on investors’ trading data provided by a major security firm in Taiwan. Our empirical findings are summarized as follows: 1. Male and the younger traders preferred online trading. Investors who had better gross return tend to switching to online trading mechanism. 2. Even though investors traded more actively after going online, their trade performance is not negatively affected. 3. Online trading does not significantly increase information-triggered trades (speculative trading), even though there is more access to information after going online. 4. Finally, the order execution efficiency of online trading is better than phone-based trading.

Recommended Citation

Lin, Y. C. George; Kang, Y. C. Elena; and Chiu, Chiung-Lin, "Understanding Online Traders: Trading and Performance in Common Stock Investment" (2009). ICEB 2009 Proceedings (Macau, SAR China). 18.
https://aisel.aisnet.org/iceb2009/18