Designing a Model for Social Trading Platforms in Irans Capital Market

Subject Areas : Financial Knowledge of Securities Analysis

shahin ahmadi ¹ , Alireza Heidarzadeh Hanzaei ² , hamidreza kordlooei ³ , Mahdi Madanchi Zaj ⁴ , Shadi Shahverdiani ⁵

1 - PhD. Student in Financial Engineering, Department of Financial Management, Faculty of Management and Economy, Sciences and Research Branch, Islamic Azad University, Tehran, Iran.
2 - Assistant Prof. Department of Financial Management, Tehran North Branch, Islamic Azad University, Tehran, Iran, Corresponding Author
3 - Associate prof, Finance department, Islamic Azad University, Eslamshahr Branch, Tehran, Iran
4 - Assistant Prof. Department of Financial Management, Electronic Campus, Islamic Azad University Tehran, Iran.
5 - Assistant Prof. Department of Financial management,Shahr-e-Qods Branch, Islamic Azad University, Tehran, Iran.

Received: 2022-04-25 Accepted : 2022-07-11 Published : 2022-08-23

Keywords:

Abstract :

With developments in Iranian Capital Markets and the influence of Social Networks, the need to a tailored social platform for Iranian capital market seems inevitable. The purpose of the study is to design a quantitative model for social trading platform based on rating of dimensions and categories. The research was performed as a descriptive-survey, and considering the type of data, it was a mixed research and ranked the dimensions and criterions of the social trading platforms in Iranian Capital Markets. Based on Theoretical Matrix from previous surveys, the research was performed using descriptive and inferential statistics and a quantitative approach based on factor analysis of 380 questionnaires collected from investment, financing, VC and other expert parties and the reliability and validity of the model were tested using structural equations through smart PLS. The dimensions were ranked using structural equations and the criterions were ranked using Friedman rank analysis and confirmatory factor analysis. The highest estimated path coefficient reveals the highest ranks of dimensions. Statistical analysis of questionnaires regarding 11 main dimensions resulted on the following ranks (on the scale from most to less important) as follows: 1) information and trading transparency, 2) the interaction of money market and securities market, 3) training and investor education and reducing herd behavior, 4) stock analysis and returns, 5) the characteristics of social network, 6) owners’ equity and financial statements, 7) risk management, 8) inventory management systems, 9) financial and market ratios, 10) competitiveness ability, and 11) technologic characteristics.It should be noticed that the structural equation modeling results in better ratings for main dimensions, but for the rating of the criterions, one sample T test and Factor analysis end in best results. It could be concluded that dimensions like the information and trading transparency, interaction of money and securities market, and training and investor education have attained the highest ranks and dimensions as financial ratios, competitive abilities, and technologic characteristics has the lowest ranks. It should be considered that these results could be useful in the process of product development for developers and venture capitalists working on social trading platforms.

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