Influence of Behavioural Biases on Investment Decisions of Individual Investors in Nairobi Securities Exchange

Annetty V. W. Angote, Tobias Olweny, Julius Miroga
2021 The International Journal of Business & Management  
Lewllen,2001) . But several studies in the developed capital markets found that many phenomena regarding stock investment decisions cannot be explained. Investors in capital asset exchanges, typically take many different and important decisions, the most common are taking investment decisions in order to maximize their wealth; while others deal with considerations seeking market timing techniques to maximize their wealth. In determining influence of behavioral biases on investment decisions of
more » ... ndividual investors in NSE also several independent variables were taken into account. These are fear of regrets bias, human availability heuristics bias, mental accounting bias, and anchoring and herd mentality bias. These independent variables were expected to have either a positive or negative effect on the investment decisions of individual investors in NSE. This study therefore sought to answer the following research question; -was there any relationship between behavioral biases and investment decisions of individual investors in the NSE. In answering the above question, both qualitative and quantitative approach was used to develop the concept of the research (Creswell, 2003). A study of related relevant literature formed the major parts of this research and the result was presented using statistical tables. The main objective of this study was to establish whether the behavioral biases and investment decisions had an influence on individual investors in Nairobi Security Exchange (NSE).; hence, several studies had different results in identifying any of those factors as the most influential on stock investment decisions in the other markets. This study examined the effect of the following behavioral biases on individual investment decisions. These biases were; fear of regrets bias (Shiller, 1995)
doi:10.24940/theijbm/2021/v9/i3/bm2103-008 fatcat:zkh3bzfqpzfwtavh4vfuxqfrs4