phbs
Disentangling the Influence of Community Pressure on Trading Behavior and Profitability on Social Trading Platform
2023-11-02 15:12:48
Amateur investors have increasingly been using social trading platforms to observe, interact with, and emulate the trades executed by professional traders. The present study seeks to examine the impact of community pressure, emanating from amateur investors, on the trading conduct and performance of professional traders within the context of social trading platforms. Additionally, this study endeavors to consider moderating effects of both traders' thinking personality and their degree of social network dominance when scrutinizing the extent to which traders react to the aforementioned community pressure. Drawing upon secondary data acquired from a prominent social trading platform, our analysis indicates that community pressure accumulated from amateur investors has a curvilinear influence on traders’ trading behavior. Furthermore, traders possessing thinking personality and exhibiting high dominance within their social networks are inclined to exhibit greater resistance against community pressure, resulting in less susceptibility to behavioral alterations on the trading platform.