Trading activity on social trading platforms – a behavioral approach*

PurposeSocial trading platforms are considered to be amongst the major innovations in online trading. The purpose of this article is to analyze the trading activity of traders on social trading networks by taking a behavioral approach. Additionally, the authors investigate the factors that influence the irrational part of trading activity derived from the key characteristics of these platforms, i.e. those dealing with social interaction.Design/methodology/approachThe investigation utilizes an extensive set of trading data from two major platforms in Germany to study the trading behavior. The authors apply a fixed effects two-stage least squares (2SLS) approach to quantify the relationship between trading activity and performance and define overconfidence as the part of trading activity that is irrationally motivated and results in negative returns.FindingsThe results provide evidence for the negative relationship between overconfidence and return on social trading platforms. The authors find that the number of followers and some platform-specific features significantly affect the trading behavior of the traders.Originality/valueThe authors contribute to the existing literature by exploring how the novel social interaction characteristics of online trading impact trading activity by giving rise to a new dimension of overconfidence. In addition, the authors evidence that the different frameworks of the platforms motivate heterogenous behavioral responses by the signalers. Finally, the authors refine existing studies by applying a distinct methodology for modeling overconfidence.

NYKAA: A Comprehensive Analysis of a Leading Indian E-Commerce Cosmetic Company

Purpose: The cosmetics industry is one of the major industries that have attracted many players due to its rapid growth. The cosmetics industry plays an important role in developing the country's economy. This study is being taken up to better understand the contribution of the beauty industry to the development of the country and to evaluate the strategies of these companies. Nykaa is one of the leading companies in the cosmetics industry. It offers various products of different brands on one platform. Its setup by Falguni Nayar in 2012. She anticipated the huge opportunity in online trading in the coming years and converted that opportunity into a big vision. Her decision was not wrong it turned into building a large-scale business. By operating multinational, it attracts customers from various regions. Initially, it started the business by offering beauty products later on diversified with fashion, skincare, luxury products. This study is conducted to evaluate the strategies used by NYKAA to be one of the top companies in E-Commerce. Research Methodology: In this paper, an attempt is made to evaluate financial performance, Competitor’s analysis, CSR, Marketing and Inventory strategy, SWOC framework of Nykaa as a research case study. Findings: From the study, it’s clear that Nykaa is doing very well in E-retailing and gives tough competition to rival firms. Giving a platform to small entrepreneurs to grow along with their successful journey. Originality: Various performance analysis techniques are used to appraise the NYKAA accomplishment. Paper type: Research Case study.

Opportunities and challenges halal marketplace in Indonesia

The development of information technology encourages the emergence of various online transaction activities, one of which is online trading transactions through the marketplace. Currently, Indonesia has the largest Muslim population, which is 87% of the total population who also takes part in buying and selling activities and online transactions. Muslim awareness and interest in halal products is increasing, but there is a need of understanding regarding transactions according to Sharia. The purpose of this study: to analyse the potential and challenges of the halal marketplace in Indonesia using a literature study research method. The results of this study indicate that in Indonesia the halal marketplace has a large market potential and is an innovation in the development of the existing marketplace. Besides this potential, the halal marketplace also has challenges in its development, including the low level of Islamic economic literacy among the public, low inclusion of Islamic finance, and the lack of utilization of the halal marketplace platform by halal MSMEs. It is hoped that these potentials and challenges can become views in determining and developing policies.

Identifying Perverse Incentives in Buyer Profiling on Online Trading Platforms

With advance machine learning and artificial intelligence models, the capability of online trading platforms to profile consumers to identify and understand their needs has substantially increased. In this study, we use an analytical model to study whether these platforms have an incentive to profile their customers as accurately as possible. We find that “payments-for-transactions” platforms (i.e., platforms that charge for transactions that occur on the platform) indeed have such incentives to accurately profile the customers. However, surprisingly, “payments-for-discoveries” platform (i.e., platforms that charge customers for discoveries) have a perverse incentive to deviate from accurate consumer profiling. Our study provides insights into underlying mechanisms that drive this perverse incentive and discuss circumstances that lead to such a perverse incentive.

Drivers of farmers’ usage of digital marketplace platform: evidence from India

Online trading by farmers is a critical component of the agricultural supply chain. Perceived ease-of-use and perceived usefulness of a digital marketplace enhances trust and then farmers’ intention to use that digital marketplace. This study, by leveraging a mediation model, explores the usage drivers of digital marketplaces by farmers in India. Indeed, farmers' intrinsic propensity to trust generally is a moderator of the relationship between trust and intention to use a digital marketplace. We assert the relationship between (a) perceived ease-of-use of technology and trust and (b) perceived usefulness and trust is moderated by perceived self-efficacy by farmers and the digital marketplace platform provider’s reputation who is offering the digital marketplace service. This study contributes to the field of smart agri-food supply chain literature, by exploring willingness of Indian farmers to trade their produce on digital market places and potential factors of influence.

Facebook with money: the rise of online brokerage platforms and vulnerable groups

The recent advances in information technology now allow millions of people to trade and invest in an array of financial assets with the help of online brokerage platforms. This allows retail investors to have more control over their own financial well-being, arguably a positive development. Nevertheless, trading and investing with real money comes with serious risks, especially for vulnerable people. The current UK framework for the regulation of online trading in financial assets overlooks vulnerable groups, such as children, disabled adults, and vulnerable women. By drawing a parallel between online gambling and online trading, the negative effects of online trading can be minimised. The UK regulatory and policy framework surrounding online gambling could provide valuable solutions to tackle the existing lacunae in the protection of vulnerable groups in the online trading environment.

Legal Protection for Consumers on Online Trade of Imported Food Products That Do Not Have a Circulation License in Indonesia

Legal protection for consumers for online trading of imported food products without a distribution permit is something that is very important to do in Indonesia, considering that for consumers to obtain any goods through buying and selling is not something difficult in the era of modern technology at this time with the presence of online media, but maintaining the health of certain food products is the main goal for everyone. The presence of online media makes it easier for consumers and business actors to access buying and selling transactions. The online media that are widely used by business actors include Instagram, Facebook, WhatsApp and so on. However, the existence of several products in the form of imported food without a distribution permit sold online from business actors will certainly have a negative impact on consumers as buyers, especially the impact on health caused by food products. Although Law no. 8 of 1999 concerning Consumer Protection can be used as an umbrella to provide protection for consumers. However, considering that the regulation does not stipulate a supervisory mechanism for business actors who do not have a distribution permit, so that the legal protection that is implemented cannot run properly as determined, that's why there are still many business actors in trading imported food products that do not yet have a license. distribution permit which ultimately does not provide legal protection for consumers properly is the cause of the weak regulation on consumer protection.

Earnings Response Coefficient, Sharia Online Trading System, and Firm Value

This research aims to examine the nexus between Earnings Response Coefficient (ERC), Sharia Online Trading System (SOTS), and firm value. The research sample was all companies listed on the Jakarta Islamic Index (JII). The research model used path analysis employing the regression with common, fixed and random effect models as well as the robustness check through Generalized Method of Moment (GMM). The result demonstrates that ERC and SOTS can’t determine the level of firm values. This research found no effects of ERC and SOTS on firm value, but nexus between ERC and SOTS was found. These findings indicate that ERC and SOTS have no effect at all on the firm value, meanwhile ERC has the negative effect on SOTS. Nevertheless, the result of this research found no intervening effect of SOTS on the ERC and firm Value. It shows that SOTS can’t mediate the nexus between ERC and firm value.

Digitalisasi sebagai upaya adaptif industri pasar modal di era disruption: dampak pada eksistensi WPPE di masa pandemi Covid-19

This research is based on the number of securities companies that have begun to focus on the phenomenon of their business on online services, both online account opening and online trading media transactions as an effort to adapt to the current disruption. The research was conducted with a qualitative approach, by triangulating research data. Not all data were obtained in full due to limited access obtained by researchers. From the results of the study, there was an increase in the number of investors in the capital market during the COVID-19 pandemic. On the other hand, there is a decrease in the number of securities companies that are members of the stock exchange, as well as the WPPE licensed brokerage profession which is facing serious challenges due to this phenomenon.

Problems and prospects of e-commerce regulation in the EAEU

The rapid growth of online trade leads to a number of problems faced by EAEU member states in the implementation of customs regulation of electronic commerce: reducing the tax base by reducing traditional trade; sending profit fl ows to those countries where the parent companies of online trading platforms are registered; imperfect competition of goods imported duty-free compared to goods produced within the EAEU; the emergence of new security threats due to the actual lack of certification and other restrictions, which actualizes a thorough study of this phenomenon and its timely regulation. The article outlines topical issues of regulating the movement of goods of cross-border electronic trade across the customs border of the EAEU, which make it necessary to amend the Agreement on the Customs Code of the EAEU on cross-border electronic commerce, that is, the content of the draft Protocol on Amendments, according to which "goods for electronic commerce" is understood as goods, acquired by individuals in the framework of foreign electronic commerce, under which, in turn, it is meant to conclude a transaction, one of the parties to which is a foreign economic operator, on electronic trading platforms through the Internet. An analysis of these changes is presented, in particular, the prospect of creating a new legal institution and type of activity in the field of customs regulation — an e-commerce operator, which will provide logistics of operations, as well as ensure interaction with Internet sites and customs, ensuring customs declaration processes. The main requirements for the operator of electronic commerce, the specifics of temporary storage, customs declaration and issuance of electronic commerce goods, the specifics of the application of the customs procedure of the customs warehouse, as well as the procedure for applying customs payments and the prospects for regulating electronic commerce in the EAEU have been determined.