Evaluation of stock trading performance of students using a web-based virtual stock trading system

  • Authors:

  • Hui-Chi Wu;Chien-Ming Tseng;Po-Chou Chan;Sue-Fen Huang;Wei-Wei Chu;Yung-Fu Chen

  • Affiliations:

  • Department of Healthcare Administration, Central Taiwan University of Science and Technology, 666 Buzih Road, Beitun District, Taichung 40601, Taiwan;Department of International Business, Central Taiwan University of Science and Technology, 666 Buzih Road, Beitun District, Taichung 40601, Taiwan;Department of Management Information Systems, Central Taiwan University of Science and Technology, 666 Buzih Road, Beitun District, Taichung 40601, Taiwan;Department of Management Information Systems, Central Taiwan University of Science and Technology, 666 Buzih Road, Beitun District, Taichung 40601, Taiwan;Department of Management Information Systems, Central Taiwan University of Science and Technology, 666 Buzih Road, Beitun District, Taichung 40601, Taiwan;Department of Healthcare Administration, Central Taiwan University of Science and Technology, 666 Buzih Road, Beitun District, Taichung 40601, Taiwan and Department of Health Services Administrati ...

  • Venue:
  • Computers & Mathematics with Applications
  • Year:
  • 2012

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Abstract

Most investors lack financial knowledge and information for trading in the stock market. The objective of this study was to enhance the motivation and learning efficiency for students attending a course in financial management. A web-based virtual stock trading (VST) system, embedded with provided functions for financial ratio analysis, was designed to simulate a stock trading environment. Through learning with objective financial analyses, the state of learners' minds is expected not to be affected by news or market fluctuations, which in turn nurtures the students as rational investors. Students were recruited from two universities located in central Taiwan for this study. They were given a virtual budget at the beginning of the semester for online virtual trading. The stock trading behavior, such as risk aversion and disposition effect, was explored through students' trading histories. Furthermore, the learning outcome was evaluated with analysis of trading performance based on five indicators, including returns on budget, stock's trading amount turnover, profit margin of stock trading amount, average budget utilization rate, and returns on average investment amount. Finally, perceived usefulness and behavior intention of the VST system were surveyed using a questionnaire instrument based on the extended technical acceptance model (TAM). The analytic results support risk aversion theory in that students tended to sell high-priced stocks in short periods with a holding day of 4.03+/-4.93(N=32) because of its great price fluctuation even if its price was rising during the study period. In contrast, the holding days of high-priced stocks were significantly shorter than the stocks (t-test, p