Behavioral Anomalies of IPO Investment: A Survey of SIAYA Institute of Technology teachers (kenya)
Journal of Insurance and Financial Management
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Title |
Behavioral Anomalies of IPO Investment: A Survey of SIAYA Institute of Technology teachers (kenya)
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Creator |
Omondi, Ojwang’ George
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Description |
Societies are organized around the assumption that human beings are perfectly rational in their decision making processes. The extent to which people make decisions has a significant influence just as the choice itself. This research aimed at identifying irrational factors that influence initial public offering (IPO) investment decisions by teachers of siaya institute of technology. To achieve this objective, the research adopted a descriptive cross-sectional survey design collecting data from eighty participants through drop and pick later questionnaires.Results reveal that for teachers os siaya institute of technology, trading within capital markets is hardly based on fundamental analysis. They hold onto losing stock for fear of receiving negative returns, have little information on market trends, are risk averse and believe in holding superior portfolios.This is influenced by optimism/pessimism bias and the fact that they are privately informed by their workmates and social groups. Media news releases, regular broker recommendations, family members's purchase approval and social group popular opinion all play a role in asset selection process and market timing.
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Publisher |
Journal of Insurance and Financial Management
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Contributor |
author
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Date |
2016-11-02
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
https://journal-of-insurance-and-financial-management.com/index.php/JIFM/article/view/66
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Source |
Journal of Insurance and Financial Management; Vol 2, No 4 (2016): Journal of Insurance and Financial Management
2371-2112 |
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Language |
eng
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Relation |
https://journal-of-insurance-and-financial-management.com/index.php/JIFM/article/view/66/pdf
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Rights |
Copyright (c) 2016 Ojwang’ George Omondi
http://creativecommons.org/licenses/by/4.0 |
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