Effect of Overconfidence Biases on Investment Decisions at NSE in Kenya

Nicholas Kipkoech Koskei, Charles Tibbs and Reuben Rutto

Sustainable Business and Society in Emerging Economies, 2025, vol. 7, issue 2, 407-420

Abstract: Purpose: To analyze the effect of overconfidence biases on investment decisions at NSE in Kenya.Design/Methodology/Approach: The study was conducted between May 2023 and June 2024 and focused on 62 quoted companies at the NSE; causal research design was adopted in the study. Quoted companies that trade in the Nairobi security exchange were used as units of study. There are 62 listed companies at the NSE presently. Data collection schedule was embraced to gather data required during the research. The research involved descriptive and inferential data statistics with data collected in coded form and analysed in qualitative and quantitative data analysis approach through strata.Findings: There is a large astronomical relationship between overconfidence biases and investment decision of NSE investors in Kenya (p0.000<0.05)Implications/Originality/Value: The level of confidence given by the investors in security exchange of Nairobi ought to be set in accordance with trading volume whereby, the averages of the maximum volume traded and the minimum volume traded ought to be evaluated and when the state of confidence is moderate then it should emerge.

Keywords: Overconfidence biases; Investment decisions; Nairobi Securities exchange (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:src:sbseec:v:7:y:2025:i:2:p:407-420

DOI: 10.26710/sbsee.v7i2.3423

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