Information source use for investment decision making: examining information source dependencies for personal finance

This study explores the patterns of investment information source use of three types of investors: on-line, traditional, and mixed investors. Testing the uses and gratifications leading to dependency hypothesis, information channels were grouped into three main categories: on-line investment information sources (OIS), traditional investment information sources (TIS), and interpersonal investment information sources (IPIS). Then, investors\u27 information seeking behaviors and their dependence on the information sources with regard to their perceived market uncertainty were examined. The results of an ANOVA test failed to support the hypothesis that on-line investors are more uncertain about the investing environment. However, another ANOVA test showed that on-line investors have more diversified functional alternative information uses. No difference was found among investor groups in terms of traditional and interpersonal investment information source use, but on-line investors\u27 use of on-line sources was significantly heavier than that of traditional investors. A correlation analysis also indicated that the more frequent use of on-line sources intensifies the dependence of investors on them