Assessing a moderating effect and the global fit of a PLS model on online trading

- Professor Juan García-Machado

This paper proposes a PLS Model for the study of Online Trading. Traditional investing has experienced a revolution due to the rise of e-trading services that enable investors to use Internet conduct secure trading. On the hand, model results show that there is a positive, direct and statistically significant relationship between personal outcome expectations, perceived relative advantage, shared vision and economy-based trust with the quality of knowledge. On the other hand, trading frequency and portfolio performance has also this relationship. After including the investor’s income and financial wealth (IFW) as moderating effect, the PLS model was enhanced, and we found that the interaction term is negative and statistically significant, so, higher IFW levels entail a weaker relationship between trading frequency and portfolio performance and vice-versa. Finally, with regard to the goodness of overall model fit measures, they showed that the model is fit for SRMR and dG measures, so it is likely that the model is true.

Professor Juan J. García-Machado, University of Huelva, Spain – Head and full professor of Finance at the Department of Financial Economics, Accounting and Operations Management in the Faculty of Business Administration and Tourism. Head of the Research Group in Management and Modelling of Organizations of the Andalusian Plan for Research, Development and Innovation of the Autonomous Government of Andalusia. He received his Ph.D. from the University of Seville in 1994. He has been Head of the Department, Director of several Doctoral Programmes, Member of Scientific Committees, Chairman of the Organizing Committee of the XXVII Annual Conference of the European Academy of Management and Business Economics in 2013, and currently Member of the Senate of the University of Huelva. Lecturer and Visiting Professor at many universities in Spain, Portugal, Paraguay, Brazil, Mexico, Italy, Denmark, Poland, and United Kingdom. His research interests include, derivative financial markets, banking, financial crisis, risk measuring, online finance, agricultural derivatives, real options, and valuation of firms. His work has been presented in national and international conferences and has been published in refereed journals such as European Review of Management, Innovar Journal of Administrative and Social Sciences, Information Management and Computer Security, International Journal of Electronic Finance, European Research on Management and Business Economics, European Journal of Finance, International Research Journal of Finance and Economics and Spanish Securities Exchange Commission publications. He is a Fellow of the European Academy of Management and Business Economics and the Spanish Finance Association.

DOI: 10.14611/minib.26.12.2017.10
Contact: machado(at)
MINIB, 2017, Vol. 26, Issue 4

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