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Online social networks (OSNs) are a terrifically emerging platform for information dissemination around the world. Like other settings, acceptance and adoption of OSNs among the individual capital market investors are extensive. The study developed a conceptual model for behavioural finance integrating a technology acceptance model (TAM) and valence framework from the information systems and marketing disciplines, respectively. The integrated model added some persuasive constructs from social capital and diffusion innovation theory with a view to explore the key factors swaying investors’ intention to adopt and use the OSN’s services. By using an online and offline structured questionnaire, 510 data were collected from individual capital market investors in Bangladesh. Structural Equation Modelling (SEM) was used for data analysis. The study determined that the proposed integrated model with additional constructs outperformed other models. Perceived usefulness (PU), perceived enjoyment (PE), trust and personal innovativeness in IT (PIIT) had a substantial sway on the investor’s intention to use OSNs. Hedonic value is more robust predictor of intention to use OSNs than utilitarian value. Intention to use properly mediated the relationships and had strong significant impact on investor’s investment decision. But perceived ease of use (PEOU) and perceived risk had no direct significant effect on intention to use. PEOU had significant impact on intention to use through PU and PE. Gender moderated the relationships of different constructs with the intention to use OSNs for investment decisions in the capital market. It contributes knowledge by including the integration of different models in stock market perspectives and the inclusion of technological aspect in the behavioural finance literature. The findings of the study will also succor different firms and regulatory authorities to adopt OSNs as an information dissemination platform.
This study discusses the role of core and symbolic capabilities during due-diligence processes when investing in companies in turbulent fields such as the biotechnology industry. The results indicate that investors' evaluations are hierarchical and are based on two premises. First, investors look for core capabilities — the characteristics that signal the potential for future success. They then search for symbolic elements, such as reputation, to confirm their decisions. The study expands earlier models of investors' evaluation processes. It also offers new insights for entrepreneurs of biotechnology firms.
In January 2016, the Government of India launched the Startup India initiative, which has transformed the way in which the markets, potential entrepreneurs, and investors view startups. This transformation included a slew of policy measures intended to promote a startup culture and allow younger population members to take risks with their ideas and become “job creators” rather than “job seekers.” India’s demographic dividend required a suitable channelization of human resources. The Startup Action Plan (SAP) of 2016 proposed to address three key areas for empowering potential startups: (i) handholding and simplification; (ii) funding support and incentives; and (iii) incubation and industry–academia partnership. Emerging as the third-largest startup ecosystem of the world, India has potential for enormous growth. There have been several policies at all levels of government, industry, and academia to promote a startup culture. However, it is important to examine these initiatives and determine whether they move beyond the subsidy/tax holiday mindset and work on the root corrections necessary for a robust startup ecosystem. There are several issues that require consideration from the policy and regulatory perspective for a successful startup revolution. This chapter explores these initiatives that the Government of India has taken and identifies the gaps that require attention from stakeholders. The chapter also investigates the major challenges and potential solutions arising from the Indian experience of initiatives in the startup revolution.
Unlike traditional macroeconomic analysis on financial crises, this paper investigated the relationship between the effects of propagating negative messages, which leads to deterioration of the economic situation over time. The theory of financial crises generated by the spread of investors’ panic is analogized by an infectious disease model. The basic reproduction number is thereafter calculated to determine the propagation of negative messages in a group of investors, the maximum number of investors that can be influenced by negative messages and the maximum threshold value of influenced investors before a financial crisis occurs. The calculations demonstrated that the number of investors influenced by negative messages when governments publish relevant policies, such as monetary policy, financial policy etc., to prevent financial crises is clearly lower than the number of investors influenced by negative messages when governments take no action. Therefore governments’ interference in financial uncertainty can effectively reduce the possibility of financial crises occurring.