The effects of behavioural factors in investment decision-making: a survey of institutional investors operating at the Nairobi Stock Exchange

Waweru, Nelson; Munyoki, Evelyne; Uliana, Enrico

doi:10.1504/ijbem.2008.019243

Cited by 244 publications

(438 citation statements)

References 40 publications

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“…Kahneman and Tversky were the first researchers to study the biases involved in heuristic factors such as representability, anchoring, and availability (Kahneman & . Waweru et al (2008), add two other biases to this factor: gambler's fallacy and overconfidence. The same authors classify into Perspective Theory the following biases: loss aversion, regret aversion, and mental accounting.…”

Section: "The Investor's Chief Problem -And Even His Worst Enemy -Is mentioning

confidence: 99%

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Psychological Biases, Main Factors of Financial Behaviour - A Literature Review

Dervishaj¹

2018

European Journal of Natural Sciences and Medicine

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In the context of the sophistication of financial relationships, investment alternatives, risk and recurrent recent financial crises, human factor has become increasingly important in investor decision-making. Studies on investment behavior of a number of authors at different times and places, encouraged this new widely accepted inter-disciplinary field of finance: Behavioral Finance. In order to understand and explain individual decision making and investment behavior, it is necessary to study behavioral factors which impact it. Various scholars have studied factors of financial behavior and their impact on financial decision making, and in particular a special focus has been given to psychological biases. Usually investors are not aware of their behavioral biases. If investors become conscious of biases they can face, they can act more rationally. This way of thinking might increase the quality of their decision-making. The paper aims to help decision-makers and investors get to know with psychological biases, in order to make better decisions when investing, reducing the chances of being vulnerable to behavioral deviations, as the consequences of individual errors are inevitably reflected at a macro level, causing instability and economic -financial crisis.

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Section: "The Investor's Chief Problem -And Even His Worst Enemy -Is mentioning

confidence: 99%

“…Most of them being a natural part of human behavior, they can negatively affect the ability to improve the financial position. Accordingto the above classification (Waweru et al, 2008), we present psychological biases categorized by: Heuristics, Perspective Theory and Herding.…”

Section: "The Investor's Chief Problem -And Even His Worst Enemy -Is mentioning

confidence: 99%

Psychological Biases, Main Factors of Financial Behaviour - A Literature Review

Dervishaj¹

2018

European Journal of Natural Sciences and Medicine

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“…In general, these heuristics are quite useful, particularly when time is limited (Waweru, Munyoki, & Uliana, 2008), but sometimes they lead to biases (Ritter, 2003;Tversky & Kahneman, 1975). Tversky and Kahneman (1975) seem to be ones of the first writers studying the factors belonging to heuristics when introducing three factors namely representativeness, availability bias, and anchoring.…”

Section: Heuristics Theorymentioning

confidence: 99%

The Behavior Patterns of Investors in Thailand Stock Market

Tran

2017

AJFA

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The purpose of this paper is to investigate behavioral patterns expressed by investors in the Thailand stock market. The paper examines investment decision-making processes in the context of the current financial market in Thailand to shed some light on behavioral-induced pattern behind such investments. Data for this research was collated from 8 individual investors by semi-structured and in-depth interview. There are four behavioral factors of individual investors in Thailand Stock Exchange: Overconfidence, Excessive Optimism, Psychology of risk, and Herding Behavior. Securities Companies may also use the findings of this research for better understanding on investors' decision to give better recommendations to them. Stock prices then reflect their true value and Thailand stock market becomes the yardstick of the economy's wealth and helps enterprises to raise capital for business activities.

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“…However, the market factors influence the behavioral investors (as mentioned above) and rational investors in different ways, so that it is not adequate if market factors are not listed when considering the behavioral factors impacting the investment decisions. Together with the research of Waweru et al (2008), this research treats the market factors fairly as behavioral factors influencing the decisions of investors in the stock market.…”

Section: Market Factormentioning

confidence: 99%

Behavior Pattern of Individual Investors in Stock Market

Ngoc¹

2013

IJBM

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This research aims to investigate behavioral factors influencing the decisions of individual investors at the Securities Companies in Ho Chi Minh City, Vietnam. Data for this research was collated from 188 responses from individual investors, accounting for the response rate of 63%. There are five behavioral factors of individual investors at the Ho Chi Minh Stock Exchange: Herding, Market, Prospect, Overconfidence-gamble's fallacy, and Anchoring-ability bias. Securities Companies may also use the findings of this research for better understanding on investors' decision to give better recommendations to them. Stock prices then reflect their true value and Ho Chi Minh stock market becomes the yardstick of the economy's wealth and helps enterprises to raise capital for business activities.

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The effects of behavioural factors in investment decision-making: a survey of institutional investors operating at the Nairobi Stock Exchange

Cited by 244 publications

References 40 publications

Psychological Biases, Main Factors of Financial Behaviour - A Literature Review

Psychological Biases, Main Factors of Financial Behaviour - A Literature Review

The Behavior Patterns of Investors in Thailand Stock Market

Behavior Pattern of Individual Investors in Stock Market

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