Record Detail Back
International Journal of Law and Management: Impact of stockbrokers’ services on the trust and confidence of retail equity investors: an ordinal approach
- Share to:
Abstract
Purpose – The purpose of this study was to assess equity investors satisfaction with stockbroker services.
Four components emerged from a factor analysis of 14 variables of retail equity investors’ satisfaction with
stockbroker services. According to the findings, these elements have a substantial impact on investors’ trust
and confidence in stockbrokers.
Design/methodology/approach – By physically visiting stockbrokers’ offices in Punjab, including
Amritsar, Jalandhar, Ludhiana and Mohali, 1,000 questionnaires were distributed to retail equities investors.
Stockbrokers were chosen using a simple random selection process due to their large number. Questionnaires
were filled out by personally visiting stockbrokers’ offices and handing over surveys, instructing them to fill
them out with information from their clients and personally visiting stockbrokers’ offices and instructing
their clients to complete the questionnaires. The respondents completed 373 surveys. A total of 45 surveys
were determined to be incomplete and were removed from the study. The remaining 328 surveys were used to
conduct the analysis. The study uses ordinal regression to assess investors’ trust and confidence in
stockbrokers’ services.
Findings – The findings of the study highlighted the importance of variables evaluated by respondents
when seeking stockbroker services. These criteria included the accuracy of stockbrokers’ information, the
speed with which accounts are settled and the brokers’ willingness to give valuable service to investors. These
14 variables, which measure investor satisfaction with stockbroker services, were subjected to factor analysis.
With the use of component analysis, four factors were identified: satisfaction with stockbroker services,
stockbroker regulations, stockbroker transactional services and stockbrokers’ image in the eyes of investors,
which explained 72.55% of the variation in the data. With the use of ordinal regression analysis, it was
discovered that these four criteria have a considerable impact on investors’ trust and confidence in
stockbrokers.
Research limitations/implications – The current study, which is being conducted at the state level,
might be expanded to include the entire country. It might be possible to look into the impact of retail capital
market investment on rural investors. The research might be expanded to include a look at how reforms affect
the functioning of stock markets. A study on the awareness of retail investment trends among women
investors could be conducted. It is possible to investigate the ramifications of internet stock trading in India. It
is possible to investigate the impact of technical innovation on capital markets. In this study, a survey has
been conducted, in the future, the behavior of the investors can be observed to analyze whether they are
satisfied with the services of stockbrokers or not.
Practical implications – This research would be extremely beneficial to investors who make investment
decisions and employ stockbrokers to help them make those selections. Because with the aid of the factors
revealed investors can match the service quality of their own intermediary and only if they will be satisfied
they will trust their intermediary.
Social implications – This research will aid stockbrokers in providing investors with efficient and
effective services. As they will have knowledge about the needs and aspirations of their clients, they will try to
render their services as per their expectations. This will ultimately lead to the satisfaction of the retail equity
investors, and they will have trust and confidence in the services provided by the stockbrokers. The present study helps the stockbrokers in understanding the fact that the qualitative aspects of their services are crucial
for building investors’ trust and confidence otherwise investors will not be satisfied with their services. This
study is extremely important for government as well. They can also take cues from witnessed the positive
impact of their regulations on the quality of the stockbrokers’ services. This improvement in the quality of
stockbroker services has further enhanced the trust and confidence of investors. Regulations are essential for
improving the quality of stockbrokers’ services.
Originality/value – This paper reveals that a variety of factors, i.e. satisfaction with stockbroker services,
stockbroker regulations, stockbroker transactional services and stockbrokers’ image in the eyes of investors
influence retail equities investors’ trust and faith in brokerage services.
Jaspreet Kaur - Personal Name
NONE
Text
ENGLISH
EMERALD INSIGHT
2023
ENGLAND
JURNAL ILMU HUKUM
LOADING LIST...
LOADING LIST...
APA Citation
Jaspreet Kaur. (2023).International Journal of Law and Management:
Impact of stockbrokers’ services
on the trust and confidence
of retail equity investors:
an ordinal approach.(Electronic Thesis or Dissertation). Retrieved from https://localhost/etd