| dc.description.abstract | The study sought to answer the following research questions, what are the behavioral
finance tendencies in the Nairobi Stock Exchange and its investor‟s decisions? How do
different education levels influence the investor‟s decisions? How investors of different
gender, social background select their investments?
The research design that was employed in this study was a descriptive research design
inform of a survey. The population of interest of this study was the local retail investors in
the Nairobi stock exchange. The study sample was 100 investors in the Nairobi stock
exchange simple random sampling techniques was used when sampling, thus the sample
size of this study was 100 investors.Questionnaire was designed to determine the
behavioural finance among investors in the Nairobi stock exchanges. This made it easier to
get adequate and accurate information necessary for the research.A content analysis and
descriptive analysis was employed.
From the findings the study found that the sources of information that influence investment
decision in the NSE are advice from stock brokers and advice from knowledgeable friends
and personal assessment of stock market movement which were influenced by stock
markets index, speculation, media information and company profile. The biggest challenge
in making an investment decision in the NSE on how to allocate resources were; lack of
proper understanding of stock market, lack of sufficient information and fear of the past.
The study further found that the kind of information required for investment decision
making were on company profitability , divided pay out ration and company command in
the market. From the findings on the various considered factors in their investment in NSE,
the study found that factors considered were percentage subscriptions, future prediction or
forecast, financial summary, indebtness, in what will funds invested be used for and
financial position of the firm. | en |
