Influence of Investor Behavior on Investment Choices among Equity Fund Managers of Listed Firms at Nairobi Securities Exchange-Kenya

Evans Nyabuto Gekonde (), Professor Willy Muturi () and Dr. Josphat Oluoch ()

International Journal of Finance and Accounting, 2024, vol. 9, issue 1, 1 - 12

Abstract: Purpose: This study sought to determine how market factors influence investment decisions in Nairobi Securities Exchange-Kenya. The study would offer valuable contributions from both a theoretical and practical standpoint where it contributes to the general understanding of the drivers of investment in the Nairobi Securities Exchange in Kenya. Methodology: The study adopted positivism philosophy because the study variables were based on facts derived from the empirical literature review and the theoretical premises discussed in chapter two. Its results are quantitative and explain the relationship between the variables quantitatively. This research used a descriptive research design that allows a researcher to get adequate data from a small population cost-effectively and easily by use of a questionnaire as the research instrument. It is the structure, or the blueprint of research that directs the process of research from the formulation of the research questions and hypotheses to reporting on the research findings Krishnan, (2015). Primary data was collected using standard questionnaires with both closed and open-ended questions. Cronbach's Alpha Test was used to test the internal consistency reliability of measurements. Data was obtained from the unit trusts and pension funds in Nairobi County. The study was conducted during the 2010- 2019 period. This study adopted a census of all fund managers the Nairobi Securities Exchange that have been actively trading for the period starting 2010-2019. The target population for this study was 129 fund managers hence a census of all equity fund managers at the NSE. Quantitative data was coded to facilitate analysis using Statistical Package for Social Scientists (SPSS 23). The study performed tests on statistical assumptions such as test of regression assumptions and statistics used. This included tests of reliability, normality, autocorrelation, panel root test, cointegration, linearity, independence, heteroscedasticity, and multicollinearity. Data was extracted from the financial statements and NSE handbooks, Excel program was used to calculate ratios relevant to the study variables. Descriptive statistics were used to summarize the study variables; group behavior, accounting information, firm characteristics, and market factors of fund managers at NSE. Findings: The study concluded that more attention should be focused on firm characteristics to achieve the best investment choices. Unique Contribution to Theory, Practice and Policy: The study was guided by finance theories that acted as its base that supported the empirical literature review which included Resource Based Theory (RBT), agency theory, herding theory and prospect theory. More attention should be paid to the predictors in the order of the magnitude of their effect on investment decision-making.

Keywords: Accounting Information; Firm Characteristics; Market Factors; Investment Decisions (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://iprjb.org/journals/index.php/IJFA/article/view/2400 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdu:ojijfa:v:9:y:2024:i:1:p:1-12:id:2400

Access Statistics for this article

More articles in International Journal of Finance and Accounting from IPRJB
Bibliographic data for series maintained by Chief Editor ().