Transaction Costs and Investment Behaviour of Online Investors - Empirical Evidence from the Swiss Market

摘要

Using data from a recent survey of Swiss investors a typology of online investors and their characterization based on demographic and behavioural features is presented. The findings are then examined in the light of information processing costs (transaction costs) and the special characteristics of financial market information. The analysis supports a theory of higher information processing costs for the self-directed investor than have been assumed so far. The characterization of online investors as 'naive' does not apply to the Swiss market, on the contrary, early adopters of the Internet for online trading can be considered 'professionals'.