skip to main content
10.1145/2781562.2781589acmotherconferencesArticle/Chapter ViewAbstractPublication PagesicecConference Proceedingsconference-collections
research-article

The Impact of Past Performance on Information Valuation in Virtual Communities: Empirical Study in Online Stock Message Board

Published: 03 August 2015 Publication History

Abstract

Individuals may seek and read others' opinions or may want to interact with others after participating in virtual communities. Information, opinions, and advice in virtual communities may drive individuals to make decisions. However, the value of information may vary from person to person. Individuals with different perceptions and experiences may differently evaluate the same information. Our study thus investigates how individuals process others' opinions on stock message boards for their investment decisions when they have different levels of investment returns. The actual gain/loss of wealth may influence investors' information processing behaviors. The behavioral finance literature argues that self-attribution bias influences an investor's learning process. The self-attribution bias suggests that investors who use others' opinions for their decisions may lower the usefulness of opinions when losing money but increase opinions' investment-related abilities when making a profit from investments. In the context of online stock message boards, we investigate the influence of information valuation in virtual communities and start with an exploration of how they attribute their success or failure to either themselves or other investors on stock message boards. Unlike other studies of continuous intention to use a virtual community, we consider the two paths using the factors of the online stock message board itself and individual factors for continuous intention to use the online stock message board. Thus, our research is related to the information system literature and the finance literature.

References

[1]
Antweiler, W., and Frank, M. Z. 2004. Is all that talk just noise? The information content of internet stock message boards. The Journal of Finance. 59, 3, 1259--1294.
[2]
Asvanund, A., Bagla, S., Kapadia, M., Krishnan, R., Smith, M. D., and Telang, R. 2003. Intelligent club management in peer-to-peer networks. In Proceedings of First Workshop on Economics of P2P.
[3]
Asvanund, A., Clay, K., Krishnan, R., and Smith, M. D. 2004. An empirical analysis of network externalities in peer-to-peer music-sharing networks. Information Systems Research. 15, 2, 155--174.
[4]
Bagnoli, M., Beneish, M.D., and Watts, S.G. 1999. Whisper Forecasts of Quarterly Earnings Per Share. Journal of Accounting and Economics. 28, 1, 27--50.
[5]
Bagozzi, R. P., and Dholakia, U. M. 2002. Intentional social action in virtual communities. Journal of interactive marketing, 16, 2, 2--21.
[6]
Bagozzi, R. P., Yi, Y., & Nassen, K. D. 1998. Representation of measurement error in marketing variables: Review of approaches and extension to three-facet designs. Journal of Econometrics, 89, 1, 393--421.
[7]
Barber, B. M., and Odean, T. 2000. Trading is hazardous to your wealth: The common stock investment performance of individual investors. The journal of Finance, 55, 2, 773--806.
[8]
Barber, B. M., and Odean, T. 2001. Boys will be boys: Gender, overconfidence, and common stock investment. Quarterly journal of Economics, 261--292.
[9]
Barber, B. M., and Odean, T. 2002. Online investors: do the slow die first?. Review of Financial Studies. 15, 2, 455--488.
[10]
Barclay, D., Thompson, R., and Higgins, C. 1995. The Partial Least Squares (PLS) Approach to Causal Modeling: Personal Computer Adoption and Use an Illustration. Technology Studies. 2, 2, 285--309.
[11]
Best, S. J., and Krueger, B. S. 2006. Online interactions and social capital distinguishing between new and existing ties. Social Science Computer Review, 24, 4, 395--410.
[12]
Bhattacherjee, A. 2001. Understanding information systems continuance: an expectation-confirmation model. MIS quarterly, 351--370.
[13]
Bhattacherjee, A., Perols, J., and Sanford, C. 2008. Information technology continuance: A theoretical extension and empirical test. Journal of Computer Information Systems. 49, 1, 17--26.
[14]
Bhattacherjee, A., Perols, J., and Sanford, C. 2008. Information technology continuance: A theoretical extension and empirical test. Journal of Computer Information Systems. 49, 1, 17--26.
[15]
Brown, J., Broderick, A. J., and Lee, N. 2007. Word of mouth communication within online communities: Conceptualizing the online social network. Journal of interactive marketing. 21, 3, 2--20.
[16]
Brown, I., and Jayakody, R. 2008. B2C e-commerce success: A test and validation of a revised conceptual model. The Electronic Journal Information Systems Evaluation. 11, 3, 167--184.
[17]
Butler, B. S. 2001. Membership size, communication activity, and sustainability: A resource-based model of online social structures. Information systems research. 12, 4, 346--362.
[18]
Constant, D., Sproull, L., and Kiesler, S. 1996. The Kindness of Strangers: The Usefulness of Electronic Weak Ties for Technical Advice. Organization Science. 7, 2, 119--135.
[19]
Daniel, K., Hirshleifer, D., and Subrahmanyam, A. 1998. Investor Psychology and Security Market under- and Overreactions. Journal of Finance. 53, 6, 1839--1885.
[20]
Featherman, M. and Pavlou, P.A. 2002. Predicting e-services adoption: A perceived risk perspective. Proceedings of the 2002 Americas Conference in Information Systems. Dallas, TX.
[21]
Fornell, C., and Larcker, D. F. 1981. Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of marketing research, 382--388.
[22]
Gefen, D. 2000. E-Commerce: The Role of Familiarity and Trust. Omega. 28, 6, 725--737.
[23]
Gefen, D., and Straub, D.W. 2000. The Relative Importance of Perceived Ease of Use in Is Adoption: A Study of Ecommerce Adoption. Journal of the Association for Information Systems. 1, 8, 1--28.
[24]
Gefen, D., Karahanna, E., and Straub, D. W. 2003. Trust and TAM in online shopping: An integrated model. MIS quarterly, 27, 1, 51--90.
[25]
Gervais, S., and Odean, T. 2001. Learning to be overconfident. Review of Financial studies. 14, 1, 1--27.
[26]
Granovetter, M. S. 1973. The strength of weak ties. American journal of sociology, 1360--1380.
[27]
Gu, B., Konana, P., Rajagopalan, B., and Chen, H.-W.M. 2007. Competition among Virtual Communities and User Valuation: The Case of Investing-Related Communities. Information Systems Research, 18, 1, 68--85.
[28]
Hu, L. T., and Bentler, P. M. 1999. Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural equation modeling: a multidisciplinary journal, 6, 1, 1--55.
[29]
Jarvenpaa, S. L., and Tractinsky, N. 1999. Consumer Trust in an Internet Store: A Cross-Cultural Validation. Journal of Computer Mediated Communication. 5, 2, 1--35.
[30]
Langer, E., and Roth, J. 1975. Heads I win, tails it's chance: The illun f the sequence of outcomes in a purely chance task. Journal of Personality and Social Psychology, 32, 951--955.
[31]
Liao, C., Liu, Y. P., To, P. L., and Lin, T. L. 2009. Understanding the Intention of Giving Information in Virtual Communities. AMCIS 2009 Proceedings. paper 464, 1--9.
[32]
Ma, M., and Agarwal, R. 2007. Through a Glass Darkly: Information Technology Design, Identity Verification, and Knowledge Contribution in Online Communities. Information Systems Research. 18, 1, 42--67.
[33]
Miller, D. T., and Ross, M. 1975. Self-serving biases in the attribution of causality: Fact or fiction?. Psychological bulletin, 82, 2, 213.
[34]
Parasuraman., Zeithaml, V. A., and Berry, L. L. (1988a). SERVQUAL: a multiple item scale for measuringconsumer perceptions of service quality. Journal of Retailing, 64(1), 12--40
[35]
Pavlou, P.A. 2001. Integrating Trust in Electronic Commerce with the Technology Acceptance Model - Model Development and Validation. Proceedings of the 2001 Americas Conference in Information Systems. Boston, MA
[36]
Petty, R. E., and Cacioppo, J. T. 1986. The elaboration likelihood model of persuasion. Advances in experimental social psychology, 19, 123--205.
[37]
Rabjohn, N., Cheung, C., and Lee, M. K. 2008. Examining the perceived credibility of online opinions: information adoption in the online environment. In Hawaii International Conference on System Sciences. Proceedings of the 41st Annual (pp. 286--286). IEEE.
[38]
Ridings, C. M., Gefen, D., and Arinze, B. 2002. Some antecedents and effects of trust in virtual communities. The Journal of Strategic Information Systems. 11, 3, 271--295.
[39]
Smith, J. B., and Barclay, D. W. 1997. The effects of organizational differences and trust on the effectiveness of selling partner relationships. The Journal of Marketing, 3--21.
[40]
Sproull, L., and Kiesler, S. 1991. Connections: New ways of working in the networked organization. Cambridge, MA: MIT Press.
[41]
Sutherland, N. 1992. Irrationality: The Enemy Within. Penguin. Harmondsworth.
[42]
Sussman, S. W., and Siegal, W. S. 2003. Informational influence in organizations: An integrated approach to knowledge adoption. Information systems research, 14, 1, 47--65.
[43]
Tumarkin, R., and Whitelaw, R. F. 2001. News or noise? Internet postings and stock prices. Financial Analysts Journal. 57, 3, 41--51.
[44]
Van de Ven, A. H., and Ferry, D. L. 1980. Measuring and assessing organizations. John Wiley & Sons.
[45]
Wasko, M. M., and Faraj, S. 2005. Why should I share? Examining social capital and knowledge contribution in electronic networks of practice. MIS

Recommendations

Comments

Information & Contributors

Information

Published In

cover image ACM Other conferences
ICEC '15: Proceedings of the 17th International Conference on Electronic Commerce 2015
August 2015
268 pages
ISBN:9781450334617
DOI:10.1145/2781562
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

In-Cooperation

  • KRF: Korea Research Foundation

Publisher

Association for Computing Machinery

New York, NY, United States

Publication History

Published: 03 August 2015

Permissions

Request permissions for this article.

Check for updates

Author Tags

  1. IS continues model
  2. Information processing behavior
  3. self-attribution
  4. stock message boards

Qualifiers

  • Research-article
  • Research
  • Refereed limited

Conference

ICEC '15

Acceptance Rates

ICEC '15 Paper Acceptance Rate 39 of 55 submissions, 71%;
Overall Acceptance Rate 150 of 244 submissions, 61%

Contributors

Other Metrics

Bibliometrics & Citations

Bibliometrics

Article Metrics

  • 0
    Total Citations
  • 87
    Total Downloads
  • Downloads (Last 12 months)5
  • Downloads (Last 6 weeks)0
Reflects downloads up to 15 Feb 2025

Other Metrics

Citations

View Options

Login options

View options

PDF

View or Download as a PDF file.

PDF

eReader

View online with eReader.

eReader

Figures

Tables

Media

Share

Share

Share this Publication link

Share on social media