Determinants of behavior intention to use derivative securities. A study on individual investor's behaviors in stock market of Vietnam

Abstract

This study investigates the determinants of behavior intention to use derivative securities on individual investor ‘s behaviors in stock markets of Vietnam. Those determinants include attitude towards behavior, subjective norm, perceived behavioral control. It also examines the effect of overconfidence, excessive optimism, herd behavior, risk aversion toward attitude towards behavior. An empirical test was conducted with a sample of 317 individual investors by means of structural equation modeling. The results show that perceived behavior control has the strongest impact on the three main factors affecting behavior intention to use derivative securities with a coefficient of 0.426. The other two factors, including attitude towards behavior, subjective norm, have a direct impact on behavior intention to use derivative securities with coefficients of 0.356 and 0.216 respectively. On the other hand, overconfidence, excessive optimism, herd behavior and risk aversion have direct effect on attitude towards behavior. However, herd behavior and aversion effect attitude towards behavior with positive coefficient while overconfidence, excessive optimism affect with negative coefficient. Finally, age and education play an important role in behavior intention to use securities derivatives while there is no difference between men and women who intend to use derivative securities.