A study on electronic stock trading behaviour — A structural equation model (SEM) approach

Equity markets have been characterised by increasing volatility and fluctuations. In recent years, cases of market inefficiency in the form of market anomalies and irrational investor behavior have been more frequent. The purpose of this study was to examine the level of investor awareness and perceived risk attitudes affects the stock market investor behavior. The research study is based on the primary data for a period of 2016-2017. This research chooses a sample of 200 investors as the subject and collects data by simple random sampling. Data was obtained through survey questionnaires. The data was analyzed using SPSS 19.0 and SEM-PLS software. The result obtained was analyzed. Investor awareness was found to significantly predict investor behavior and perceived risk attitudes The results on the relationship indicated that the investor awareness and perceived risk attitudes are positively correlated to stock market investor behaviour. In light of the above findings, various recommendations are suggested on how investors can make use of available information to make objective investment decisions. This will help in encouraging potential investors to invest in the securities market.