dc.contributor.author | Mwimali, Halima M | |
dc.date.accessioned | 2013-07-01T07:30:38Z | |
dc.date.issued | 2012 | |
dc.identifier.citation | MBA Thesis | en |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/43126 | |
dc.description | Master Thesis | en |
dc.description.abstract | This study focused on the price implications of herding by investigating whether equity returns reveal the presence of herd behavior. Information asymmetry in capital markets could explain the existence of herding, it can occur either when investors are sharing the same information or facing similar circumstances rationally make similar decisions, or when investors intentionally mimic the behavior of each other. As a result, investors may not optimize their decisions individually but take into account other investors’ choices.
The main objective of this research was to investigate the existence of herding behavior among the investors at the NSE. The study entailed an empirical research design. Data used was secondary data obtained from the Nairobi securities exchange. The data obtained was from April 1996 to December 2012 divided in three phases; 1996-1997, 1998-2001 and 2003-2012. The NSE share index was used as the sample. Data was analyzed using a model developed by Christie and Huang (1995) where a regression analysis was on CSSD against dummy variables to determine the beta coefficients in the market.
The regression produced statistically significant positive beta coefficients which reveal no presence of herding behavior among investors at the NSE. In conclusion there is evidence which supports the predictions of rational asset pricing models and suggests that herding is not an important factor in determining equity returns during periods of price fluctuations in the market | en |
dc.description.sponsorship | University of Nairobi | en |
dc.language.iso | en | en |
dc.publisher | University of Nairobi | |
dc.title | The Existence of Herd Behaviour: Evidence From the Nairobi Securities Exchange | en |
dc.type | Thesis | en |
local.publisher | School of Business, University of Nairobi | en |