PUN2151

A STUDY ON ATTITUDE OF IPO INVESTORS

TOWARDS APPLICATION SUPPORTED BY
BLOCKED AMOUNT (ASBA) ONLINE
APPLICATION SYSTEM: A DIGITAL
REVOLUTION IN FINANCIAL SECTOR IN INDIA

AC2203 AC2204
Dr. Hiren Patel Ms. Drashti Shah
Assistant Professor, Assistant Professor,
HXB
S. R. Luthra Institute of Management, Surat HXB
S. R. Luthra Institute of Management, Surat
patelhirenk101@gmail.com shahdrashti@gmail.com
INTRODUCTION
Applications Supported by Blocked Amount (ASBA) is a
process developed by the India's Stock Market
Regulator SEBI for applying to IPO/FPO
In ASBA, an IPO/FPO applicant's account doesn't get
debited until shares are allotted to them
ASBA process facilitates retail individual investors bidding
at a cut-off, with a single option, to apply through Self
Certified Syndicate Banks (SCSBs) - 52 Banks at present
ASBA Offline application Using Cheques
ASBA Online application Using Online transfer
OBJECTIVE
In the era of digitalisation, investors expect various
services to be provided online
Securities and Exchange Board of India (SEBI) took an
initiative to digitalise Indian primary market by allowing
the investors with a facility called ASBA online facility
The present study is an effort to identify the attitude of
Investors towards ASBA online application system
RESEARCH METHODOLOGY AND DATA
COLLECTION
several studies are carried out for the measuring attitude
of online shoppers
However, ASBA, being fairly new concept, less than 3
years old for Indian Primary Market, IPO, and no study
had been carried out so far
The study is primary study conducted with structured
questionnaire on 7 point likert scale
The questionnaire consists of 43 statements to measure
the some complex constructs such as Security, Liquidity,
Convenience, Ease of use, Information and Attitude
RESEARCH METHODOLOGY AND DATA
COLLECTION (Continue..)
The questionnaire was floated online using
www.kwiksurvey.com as an online survey platform
To deal with the issue of generalisation, the responses
were collected from three countries India, Hong-Kong
and Australia.
And even in India from five states respondents have
participate for the survey named as Gujarat,
Maharashtra, Delhi, Haryana, Karnataka
REVIEW OF LITERATURE AND THEORETICAL
CONSTRUCT
The present literate for online shopping reflects
Liquidity, Convenience, Ease of use, Information Quality
as important parameter to measure Attitude of online
shoppers.
However, additionally, IPO investment involves the
Security of the payment
The study establishes the relationship of the
independent variables of online buying such as security,
liquidity, convenience, ease of use and information
quality with attitude
REVIEW OF LITERATURE AND THEORETICAL
CONSTRUCT (Continue..)
Security
SITEQUAL by Yoo and Donthu (2001) conceptualized four
dimensions, ease of use, aesthetic design, processing
speed, and security of personal and financial information
Trust in formation causes consumer attitude or intention
to use new technologies (Chen and Tan, 2004; Childers et
al., 2001; Davis et al., 1992; Gefen et al., 2003; Gefen and
Straub, 2003; Pavlou, 2003; Suh and Han, 2002)
REVIEW OF LITERATURE AND THEORETICAL
CONSTRUCT (Continue..)
Liquidity
At the IPO stage, investors do not know precisely how
liquid the aftermarket will be and within what period
they will receive their money back in case of non-
allotment (Ellul and Pagano, 2006)
Empirically, however, various measures of liquidity vary
over time both for individual stocks and for the market
as a whole (Chordia, Roll, and Subrahmanyam, 2001;
Hasbrouck and Seppi, 2000; Huang, 2002)
REVIEW OF LITERATURE AND THEORETICAL
CONSTRUCT (Continue..)
Convenience
The five dimensions of online shopping convenience are:
access, search, evaluation, transaction, and
possession/post-purchase convenience
ACCESS
Studies proved that the online buyer consider the easier
access of the products and services as one of the
motivating factors to go online (Beauchamp and Ponder,
2010; Berry et al., 2002; Colwell et al., 2008 ; Seiders et
al., 2000, 2005, 2007; Yale and Venkatesh, 1986)
REVIEW OF LITERATURE AND THEORETICAL
CONSTRUCT (Continue..)
Convenience (Continue..)
SEARCH
several service convenience features unique to virtual
shopping indicating some of the ingredients constituting
online such as information search, the depth and
richness of information (Jun et al., 2004; Parasuraman et
al., 2005; Wolnbarger and Gilly, 2003; Yang and
Peterson, 2004; Yang et al., 2005)
REVIEW OF LITERATURE AND THEORETICAL
CONSTRUCT (Continue..)
Convenience (Continue..)
EVALUATION
Consumer evaluation of web site quality of online
shopping may differ by product type or by retailer
(Peterson, Balasubramanian, and Bronnenberg, 1997)
Positive perceptions of e-shopping quality predict
consumers beliefs about ease of use, shopping
enjoyment, and trust (Bauer et al., 2006; Wolfinbarger
and Gilly, 2003)
REVIEW OF LITERATURE AND THEORETICAL
CONSTRUCT (Continue..)
Convenience (Continue..)
TRANSACTIONAL
In retailing environment, studies have revealed two
factors of primary importance in delivering convenient
service to customers; time-saving and effort
minimization during online transaction (Etgar, 1978;
Kotler and Zaltman, 1971; Seiders et al., 2000, 2005,
2007; Yale and Venkatesh, 1986)
REVIEW OF LITERATURE AND THEORETICAL
CONSTRUCT (Continue..)
Convenience (Continue..)
POSSESSION
Cognitive (or mental) efforts and have consistently
found that most Individuals have quite limited
cognitive resources and, acting as cognitive misers
during possession decision
In order to reduce the cognitive efforts, online
buying helps by putting all the alternatives at single
place (Beauchamp and Ponder, 2010)
REVIEW OF LITERATURE AND THEORETICAL
CONSTRUCT (Continue..)
Convenience (Continue..)
POST PURCHASE
for service industry, repair and maintenance did not
possess significance and are needed to replace with
repurchase
Seiders et al. (2007) focused post benet
convenience, as an important by online shoppers
Post benefit is treated as a parameter to measure the
level of satisfaction for online customer (Beauchamp
and Ponder, 2010).
REVIEW OF LITERATURE AND THEORETICAL
CONSTRUCT (Continue..)
Ease of Use
Agrifoglio et al. (2010) studied the role of intrinsic
motivation, information systems, computer
enjoyment, and perceived ease of use, perceived
usefulness and playfulness in determining the usage
behaviour
Lin et al. (2011) compares the TAM perceived
usefulness and perceived ease of use of the Gambia
e-Government Initiative
REVIEW OF LITERATURE AND THEORETICAL
CONSTRUCT (Continue..)
Information Quality
Information quality (IQ), as assessed by citizens,
usually influences their satisfaction and perceived
usefulness (Moon and Kim, 2001; Aggelidid and
Chatzoglou, 2008)
An individual's apprehension about the information
system quality, when she/he wants to look for the
update information in the computer or internet, is
very high (Kettinger and Lee, 1994; Heo and Han,
2003)
 REVIEW OF LITERATURE AND THEORETICAL
CONSTRUCT (Continue..)
Attitude
Attitude has been described as predispositions to
responding a particular way towards a particular object or
class of objects in a consistently favourable or
unfavourable way (Allport, 1935; Rosenberg, 1960)
Users with a more positive attitude toward IT are likely to
be more satisfied with system and view it as more useful
(Ajzen and Fishbein, 1980; Heeks, 2006; Shin, 2007)
Several researchers have indeed found positive and
significant impacts of attitude on intention (Jeong and
Lambert, 2001; Korzaan, 2003; van der Heijden, 2003;
Shih, 2004; Lee et al., 2005; Pavlou and Fygenson, 2006).
DATA ANALYSIS AND DISCUSSION
In order to have greater understanding about relationship
among the responses and predictor, multiple linear
regressions is used for the study
Assumptions of Multiple Regression
Linear Relationship
Multivariate Normality
No or little existence of multicollinearity
Existence of Homoscedasticity
Linear Relationship
Linear regression needs the
relationship between the
independent and dependent
variables to be linear
It is also important to check
for outliers since linear
regression is sensitive to
outlier effects
The linearity assumption can
best be tested with p-p
scatter plot chart
 Multivariate Normality
The linear regression analysis requires all variables to be
multivariate normal
For the given study, normality is tested using Kolmogorov-
Smirnov test of normality and found that for each variable,
collected data is normal
Security Liquidity Convenience Ease Information Attitude

N 61 61 61 61 61 61

Kolmogorov-Smirnov
1.015 0.957 0.783 0.930 0.780 1.151
Z Value a

Asymp. Sig. (2-tailed) 0.254 0.319 0.572 0.352 0.578 0.141

a. Test distribution is Normal.
 No or little existence of multicollinearity
Multicollinearity exists when the independent variables are
not, in true sense, independent from each other
Multicollinearity can be tested using at least any one of the
four ways such as using correlation matrix, by assessing
value of Tolerance limit, by calculating Variance Inflation
Factor (VIF) and through Condition Index
Regression Model Collinearity Statistics Condition Index

Tolerance VIF
Condition
Tolerance
VIF <
Index
10
(Constant)> 0.1
< 10 1.000
No Multicollinearity
Liquidity .193 5.187 10.271
Security .199 5.021 15.486
0.1 <10
10
Tolerance
<
< VIF
VIF << 100
30
Convenience< 0.01 .042 23.871 20.294
Little Multicollinearity
Ease .198 5.039 26.561
Information .086 11.613 54.743
Existence of Homoscedasticity

Homoscedasticity refers to characteristic of data with

variance in error term to be constant for independence
variables
In case of presence of Multivariate Normality and linear
relationship, there is no need to assess Homoscedasticity
For present study, there is no need to assess
homoscedasticity due to presence of Multivariate
Normality and Linear relationship
 Result of Multiple Regressions

Regression Model R R2 Adjusted R2 Std. Error of the

Estimate
1 0.930a 0.864 0.852 0.58481
a. Predictors: (Constant), Info, Liq, Sec, Ease, Con, b. Dependent Variable: Att

Model Sum of Squares df Mean Square F Sig.

Regression 119.683 5 23.937 69.991 .000
1 Residual 18.810 55 .342
Total 138.493 60
 Result of Multiple Regressions
Parameters Unstandardized Coefficients Standardized t Value Sig.
Coefficients

B Std. Error Beta

(Constant) -0.179 0.303 -0.590 0.558

Liquidity 0.253 0.115 0.248 2.194 0.032
Convenience 0.491 0.294 0.406 1.672 0.100
Security 0.161 0.116 0.154 1.382 0.173
Ease 0.139 0.116 0.133 1.190 0.239
Info 0.047 0.190 0.042 0.247 0.806

Attitude = -0.179 + 0.253 Liquidity + 0.491 Convenience +

0.161 Security + 0.139 Ease + 0.047 Information
CONCLUSION, MANAGERIAL IMPLICATIONS
It is found that the six factors used under the study
Liquidity, Security, Convenience, Ease and Information
explains over 86% of the Attitude towards ASBA online
application
The highest focus of the respondent is towards
convenience followed by liquidity and security
The managers and decision makers from Banking
community, stock exchanges, Security Exchange Board of
India (SEBI) and IPO facilitators such as Merchant
Bankers, Underwriters, Lead Managers, IPO Distributors
and Investment Bankers etc. can design their strategies
to make the ASBA online application more convenient
LIMITATIONS AND FUTURE SCOPE OF STUDY
The given study is limited to identifying the factors and its
impact on attitude individually. However, the simultaneous
impacts of independent variables on each other are not
considered under the study
Additionally, the direction of the relationship is also not
covered in detail under the present study
The future researcher can extend the same study by
identifying the direction of relationship and impact of
independent variables on each other using Path Analysis or
structural Equation Modelling
Further the researcher can confirm the independent variable
for the measurement of attitude using Confirmatory Factor
Analysis
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3. Ajzen, I., and Fishbein, M. (1972). Attitude and normative beliefs as factors
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