Analysis of Behavioral Factors Influencing Investment Performance of Individual Investors in Nairobi Securities Exchange
| dc.contributor.author | Jackson Oyaro Ong’eta | |
| dc.contributor.author | Eric J. Nasution | |
| dc.date.accessioned | 2024-09-09T18:55:21Z | |
| dc.date.available | 2024-09-09T18:55:21Z | |
| dc.date.issued | 2022-11 | |
| dc.description.abstract | Investment decisions are usually influenced by various behavioural factors. The assumption is that herding, prospecting and heuristics influence personal investment decisions among investors in the stock market. The main objective of this study was to analyze the behavioral factors influencing investment performance of individual investors in Nairobi Security Exchange. The specific objectives of the study were; assess whether the following factors-herding, prospect (loss aversion, regret aversion, and escalating the commitment), heuristic (availability bias and overconfidence) and investment decisions-are significantly correlated with each other in the NSE and establish whether the following behavioural factors-herding, prospect (loss aversion, regret aversion, and escalating the commitment) and heuristic (availability bias and overconfidence) combined together significantly influence the investment performance in the NSE. The investigator hypothesized that H01: The following behavioral factors-herding, prospect (loss aversion, regret aversion, and escalating the commitment) and heuristic (availability bias and overconfidence) and investment decisions-are not significantly correlated with each other in the NSE and H02: the following behavioural factors-herding, prospect (loss aversion, regret aversion, and escalating the commitment) and heuristic (availability bias and overconfidence) combined together do not significantly influence the investment performance in the NSE. In order to achieve the set objective, the investigator adopted survey research design targeting 1,196,995 individual investors in Nairobi Securities Exchange. The Slovin’s formula was used to estimate the 400 sample size of a population whereas the researcher took the high limit of 500 individual investors in Nairobi Securities Exchange. Structured questionnaire was used to collect primary data. The study established that loss aversion and overconfidence behaviour was displayed by the individual investors at a high level. The researcher recommends that The individual investors should be encouraged to avoid the influence of loss aversion. Instead, they should rely on fundamental analysis of the stocks to make decisions. | |
| dc.identifier.citation | DOI: 10.29322/IJSRP.11.11.2021.p11907 http://dx.doi.org/10.29322/IJSRP.11.11.2021.p11907 | |
| dc.identifier.issn | 2250-3153 | |
| dc.identifier.uri | https://ir.ueab.ac.ke/handle/123456789/101 | |
| dc.language.iso | en_US | |
| dc.publisher | International Journal of Scientific and Research Publications | |
| dc.relation.ispartofseries | 11; 11 | |
| dc.title | Analysis of Behavioral Factors Influencing Investment Performance of Individual Investors in Nairobi Securities Exchange | |
| dc.type | Article |