dc.contributor.author | Murangiri, Crispus G | |
dc.date.accessioned | 2017-01-05T06:14:45Z | |
dc.date.available | 2017-01-05T06:14:45Z | |
dc.date.issued | 2016 | |
dc.identifier.uri | http://hdl.handle.net/11295/98980 | |
dc.description.abstract | Investors have a tendency to herd by making similar decisions or by mimicking the
actions of others instead of making their own informed decisions. They end up making
irrational decisions clinging on the belief that the crowd cannot be wrong. Information
asymmetry could also explain the presence of herding behavior which is against the
Efficient Markets Hypothesis.
The main objective of this research was to investigate the effect of herding behavior on
the portfolio returns at the Nairobi Securities Exchange. The study entailed the
descriptive research design. Secondary data was obtained from the NSE historical
database which constituted of the daily prices data for the period between January 2010
and December 2015. The NSE 20 Share Index was used as a sample. Portfolio returns
were computed and the regression analysis of the returns computed to test for herding.
Cross-sectional absolute deviation model by Chang, Cheng and Khorana (2000) was used
to test the presence of herding where the γ2 coefficient was expected to be negative. The
regression coefficient γ2 was found to be positive therefore indicating no presence of
herding or its effect on portfolio returns at the Nairobi Securities Exchange. | en_US |
dc.language.iso | en | en_US |
dc.publisher | University Of Nairobi | en_US |
dc.rights | Attribution-NonCommercial-NoDerivs 3.0 United States | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/3.0/us/ | * |
dc.subject | Herding Behavior On Portfolio Returns | en_US |
dc.title | The Effects Of Herding Behavior On Portfolio Returns At The Nairobi Securities Exchange | en_US |
dc.type | Thesis | en_US |