The Effect of Word-of-Mouth Communication on Stock Holdings and Trades: Empirical Evidence From an Emerging Market
JOURNAL OF BEHAVIORAL FINANCE, vol.15, no.2, pp.89-98, 2014 (SSCI, Scopus)
- Publication Type: Article / Article
- Volume: 15 Issue: 2
- Publication Date: 2014
- Doi Number: 10.1080/15427560.2014.914029
- Journal Name: JOURNAL OF BEHAVIORAL FINANCE
- Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
- Page Numbers: pp.89-98
- Keywords: Word-of-mouth communication, Satisfaction and intention, Investors, SERVICE QUALITY, CUSTOMER SATISFACTION, LOYALTY, INFORMATION, INTENTIONS
- Anadolu University Affiliated: Yes
Abstract
The purpose of this study is to investigate the relationship between investors' satisfaction and intention and word-of-mouth communication. This study contributes to the ongoing debate on the relationship between investor behavior and word-of-mouth communication. Many studies are related to investors' participation and individual investors' asset allocation decisions that are instigated by their social community via word-of-mouth communication whereas this study directly investigates the relationship between investment satisfaction and intention and word-of-mouth communication. We emphasize how many factors are considered when making satisfactory investment decisions. Our results confirm the strong relationship between the satisfaction and intention of investors and word-of-mouth communication. This finding may be useful to regulators, investors and managers who seek to establish effective rules for stock holdings and trade.