An exploratory investigation of the investment information search behavior of individual domestic investors

This paper investigates the information search behavior of individual investors, particularly the roles played by online and offline social networks, and from the perspective of social capital and technology readiness. The paper uses rough sets analysis as the analytical tool. This study shows that despite the popularity of social network websites, the social capital of online community is still low when compared to the offline community. Hence, online communities play a less limited role in investment informational social support. Furthermore, investors with low social capital are often characterized by more intense reliance within narrow subgroups for investment information. Investors, especially those with high-investment risk profile, are truly hybrid information consumers. Investors who are innovative in technology and transact online are likely to be the users of online sources. Young investors are more likely to seek advice from online friends. The interaction effect among investment information sources is explicitly displayed via the rough sets decision rules.