Contains electronic theses & dissertations for this department http://ir.tum.ac.ke/handle/123456789/17346 2026-06-13T18:43:28Z 2026-06-13T18:43:28Z PATRICK, MARY KAVELE http://ir.tum.ac.ke/handle/123456789/17659 2024-10-31T00:00:13Z 2024-01-01T00:00:00Z

INFLUENCE OF BEHAVIOURAL FINANCE BIASES ON INVESTMENT DECISION OF EQUITY INVESTORS AT NAIROBI SECURITIES EXCHANGE IN KENYA PATRICK, MARY KAVELE Behavioral finance techniques look at how irrationality and behavioral bias influence the decisions investors make. Behavioral finance makes use of knowledge from various fields of study to comprehend investor choices. The primary goal of this research was to establish the influence of behavioral finance biases on investment decision of equity investors at NSE in Kenya. The study had four specific objectives; to examine the influence of confirmation bias on investment decision of equity investors at NSE in Kenya, to evaluate the impact of overconfidence prejudice on investment decision of equity stockholders at NSE in Kenya, to determine the influence familiarity bias on investment decision of equity investors at NSE in Kenya, and to establish the influence of information processing bias on investment decision of equity investors at NSE in Kenya. The study was anchored on the following theories; Prospect theory, Regret theory, Behavioral Reasoning theory and the Heuristic theory. Descriptive research design was utilized in this research. The target population was 136 and a sample size of 102. There were two respondents from each firm that is fund manager and a trustee. To gather quantitative data, a survey containing both organized and structured questions was used. Pilot study was done where validity was established and the reliability of the questionnaires was established by Cronbach's alpha formula to attain estimate’s reliability. The statistical package for social science, SPSS version 26, was utilized to analyze the data. To determine whether there are any substantial correlations amongst the variables, a multiple regression analysis test was conducted. The results of the research were displayed using graphs and tables. Regression analysis and descriptive correlation were performed, and the results were presented in tables along with relevant interpretation and discussion. In examining the relationship model through regression coefficients, it was found that a 0.106 increase in overconfidence bias led to a unit increase in investment decision. The regression analysis coefficients, derived from the relationship model, illustrated that a 0.187 increase in familiarity bias led to a unit increase in investment decision. The results did not support the null hypothesis at a 95% confidence level, p-value of 0.001 t-value of 2.440, surpassing the critical threshold of 1.96 suggesting a high confidence in this coefficient as a predictor variable. The null hypothesis, indicating no significant influence, was not supported with a high level of confidence 95% due to the low p value of 0.042, t-value of 2.055 surpassing the critical benchmark score of 1.96. At 95% confidence level, the null hypothesis was not supported, as indicated by an exceptionally low p-value of 0.009, t-value of 2.650, surpassing the critical benchmark score of 1.96. The null hypothesis, which posited no significant influence, was not supported at a 95% confidence level, indicated by an extremely low p-value of 0.000, t-value of 8.177, above the critical score of 1.96. The findings revealed a significant relationship between behavioral finance biases and the investment decision of equity investors at NSE. The study comes to the conclusion that equities investors at the Nairobi Securities Exchange are significantly influenced by information processing bias while making investment decisions. To optimize investment returns, investors must carefully evaluate the characteristics of market competition. The study recommends that, encouraging networking events, fostering mentorship programs, and participating in industry-related associations can help investors build valuable connections and access information that may positively impact investment decision.

2024-01-01T00:00:00Z MANSUR, KULTHUM MBARAK http://ir.tum.ac.ke/handle/123456789/17650 2024-10-31T00:00:10Z 2024-01-01T00:00:00Z

EFFECT OF DIGITAL FINANCIAL SERVICES ON FINANCIAL PERFORMANCE OF ROTATING SAVINGS AND CREDIT ASSOCIATION IN MOMBASA COUNTY MANSUR, KULTHUM MBARAK The effect of digital financial services on financial performance includes the introduction of new financial instruments and services as well as the introduction of new sources of funding. The research objective was to determining the effect of digital financial services on financial performance of RoSCAs in Mombasa County. The specific objectives was to establish the effect of digital payment, digital savings, digital remittance and digital credit on financial performance of RoSCAs. The study discussed literature review with theories related to effect of digital financial services on financial performance on ROSCAs. The theories included: Theory of Financial Innovations, Technology Acceptance Model and Diffusion of Innovation Theory. A descriptive survey technique was used to conduct out in-depth investigations by the researchers in order to accomplish the study's goals. The study concentrated on RoSCAs that are providing ROSCA digital financial services across various sectors mainly commerce, trading and service among others as follows: Wholesaler Financial Group, Local Farmer Financial Group, Mama Mboga Financial Group, Bodaboda Financial Group and Jua Kali Financial Group. There were 880 groups of RoSCAs in Mombasa County. The study sampled 275 groups of RoSCAS. The results showed that the respondents strongly agreed with a mean of 4.52 and a standard deviation of 0.723 that digital payment has enabled effective and efficient running of the operations and reduced fraud in the RoSCAs. Findings revealed that the coefficient of determination (R-Square) was 0.715 i.e. 𝑅 2 = 0.511. The study concluded that digital payment has enabled ROSCAs to be flexible and change with the dynamic environment for convenient payment. The research study recommended that the financial firms should implement the technological structures to improve digital finance service to enhance digital payment which enabled the informal financial groups to be flexible, affordable and secure per transition. It was recommended that the management of financial firms should build up cloud-based processing equipment to help in digital savings on financial performance of RoSCAs. In order to build on this research, it was recommended that a related study be conducted over a longer time frame in order to get further data about the impact of digital financial services on RoSCAs' financial success.

2024-01-01T00:00:00Z SOGOMI, FRANKLINE CHASHA http://ir.tum.ac.ke/handle/123456789/17649 2024-10-31T00:00:09Z 2024-01-01T00:00:00Z

EFFECT OF DIVIDEND POLICY ON SHAREHOLDERS’ WEALTH OF COMMERCIAL BANKS LISTED AT THE NAIROBI SECURITIES EXCHANGE SOGOMI, FRANKLINE CHASHA In the light of international securities exchange markets that are highly stochastic, lowly efficient and strongly speculative, dividend policy decisions are considered as critical for the firm in recent years. The overall objective of this study was to appraise the effect of dividend policy on shareholders’ wealth of commercial banks listed on the Nairobi Securities Exchange (NSE). The specific objectives were to determine the effect of a fixed rate dividend policy, to assess the effect of fluctuating dividend payout ratio, to examine the effect of a hybrid dividend policy, to determine the effect of residual dividend payment, and to determine the effect of stock dividend policy on shareholders’ wealth of commercial banks listed at NSE. The dividend irrelevance theory, information signaling effect theory, bird in the hand theory, and tax preference theory were evaluated to reinforce the variables that were studied in this research. The study incorporated a descriptive research design to interpret the effect of dividend policy on shareholders’ wealth of commercial banks listed on NSE. The target population encompassed 110 respondents composed of the top management personnel of the 11 commercial banks listed on the NSE. A quota sampling method of data collection was adopted where the questionnaire was administered to the selected respondents. The data was coded into the Statistical Package for Social Sciences (SPSS) for analysis. ANOVA, multiple regression, and Pearson correlation analysis were utilized as the inferential statistics for additional analysis. The regression results for a Fixed Rate Dividend Policy, Fluctuating Dividend Payout Ratio, Hybrid Dividend Policy, Residual Dividend Payment, and Stock dividend policy had significant and positive effect on Shareholder’s Wealth. Hypothesis tests for this study were carried out by regressing the independent variables against shareholders’ wealth as the dependent variable. The null hypothesis was rejected in favor of the alternative hypothesis at a p-value of 0.009, 0.000, 0.043, 0.011, and 0.000 for a Fixed Rate Dividend Policy, Fluctuating Dividend Payout Ratio, Hybrid Dividend Policy, Residual Dividend Payment, and Stock dividend policy respectively which was less than 0.05 at 95% confidence level. In regard to the findings of this research and the subsequent conclusions, the study recommends that: listed banks on NSE should formulate strategic policies and guidelines that advocates for dividend stability and consistency in order to boost the investors’ confidence in their securities thereby maximizing the shareholders’ wealth, a hybrid dividend policy that is flexible and can be embraced by the different stakeholders in the companies should be established, and management should continue to steadily raise earnings, cash flow, and dividend payments; when determining a firm's optimal dividend policy, it is important to take its growth trajectory into account; when retained earnings are more than the funds needed to finance the appropriate investment initiatives, dividends ought to be distributed; and when creating a dividend policy, commercial banks should take into account a number of factors, including their profitability, dividend history, capital ownership structure, investment prospects, shareholder expectations, shareholder tax status, and capital market accessibility as the underlying determinants of an optimal dividend policy realization.

2024-01-01T00:00:00Z