Determinants of decision to use informal online investment channels of individual investors

Abstract

The study examined determinants of decision to use informal online investment channels of
individual investors, mostly are students in Hanoi city. With 302 observations from 5-Likert survey and
ANOVA model, the linear regression model shows that the factors of the legal framework, social influence,
ease of use, and perception of financial risks have a strong impact on the decision to use informal online
investment channels of investors. We also find very interesting evidence that the perceived factor of financial
risk has a positive impact on informal online investment decisions. This finding can be explained by individual
investors are attracted by commitment of high potential profit brokers and exchanges in informal online
transactions