Irene Cherono - Academia.edu (original) (raw)
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University of Nottingham, China Campus
University of the Basque Country, Euskal Herriko Unibertsitatea
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Since 1993 when the floating exchange rate regime was established in Kenya, the country has exper... more Since 1993 when the floating exchange rate regime was established in Kenya, the country has experienced tumultuous times regarding fluctuations in exchange rates. This continuous volatility has increased foreign exchange risk exposure which in turn has raised transaction costs of companies. Naturally, higher transaction costs results in lower profitability which subsequently affects the market prices of traded stocks. During the period 2008 to 2015, the Kenyan currency market experienced significant fluctuations in exchange rates – topping at the all-time high of Kshs 110 to the US dollar. This coincided with a period of depressed performance in the Nairobi Securities Exchange with regard to capitalization. This study sought to examine the effect of fluctuations in exchange rates on share prices of the listed companies in Kenya. Both the flow-oriented theory of exchange rates and efficient market hypothesis formed the theoretical foundation of the study. The study employed a longitu...
Nairobi Securities Exchange has witnessed cases of stock market reactions as a result of extreme ... more Nairobi Securities Exchange has witnessed cases of stock market reactions as a result of extreme price volatility which point to the possibility of underlying inefficiencies that impacts on the shareholder value. Such market reactions are as a result of irrational investor behavior leading to market inefficiencies. A challenge to Efficient Market Hypothesis is that individuals often overreact and underreact to news causing stock markets to react according to investor behaviour in their investment decision making. Generally, the study determined the effect of investor behaviour, on stock market reaction of listed companies in Kenya. Specifically, the study determined the effect of investor herd behaviour on stock market reactions of listed companies in Kenya; determined the effect of investor loss aversion on stock market reactions of listed companies in Kenya; determined the effect of investor mental accounting on stock market reactions of listed companies in Kenya; and determined t...
Nairobi Securities Exchange has witnessed cases of stock market reactions as a result of extreme ... more Nairobi Securities Exchange has witnessed cases of stock market reactions as a result of extreme price volatility which point to the possibility of underlying inefficiencies that impacts on the shareholder value. Such market reactions are as a result of irrational investor behavior leading to market inefficiencies. A challenge to Efficient Market Hypothesis is that individuals often overreact and underreact to news causing stock markets to react according to investor behaviour in their investment decision making. Generally, the study determined the effect of investor behaviour, on stock market reaction of listed companies in Kenya. Specifically, the study determined the effect of investor herd behaviour on stock market reactions of listed companies in Kenya; determined the effect of investor loss aversion on stock market reactions of listed companies in Kenya; determined the effect of investor mental accounting on stock market reactions of listed companies in Kenya; and determined t...
The main behavioral bias important in order to understand the trading puzzle is overconfidence. I... more The main behavioral bias important in order to understand the trading puzzle is overconfidence. Investor overconfidence behavior is the tendency to be more confident in our ability to act ethically than is objectively justified by our abilities and moral character. Investor overconfidence behavior shows why investors trade the way they do and the judgements they make in their investment decision making leading excessive trading. The objective of the study was to determine the effect that investor overconfidence behavior on stock market reaction in Kenya. The target population was 67 listed companies at the Nairobi Securities Exchange. A sample of 48 listed companies was used for analysis. Secondary data extracted from Nairobi Stock Exchange historical data of listed companies for the period 2004 to 2016 was used for analysis. The study adopted quantitative research design. Unit root results showed that the variables were stationary. Panel data regression was used to analyze data. Pa...
A challenge to EMH is that individuals often overreact and underreact to news causing stock marke... more A challenge to EMH is that individuals often overreact and underreact to news causing stock markets to react according to investor behaviour in their investment decision making. Generally, the study determined the effect of investor behaviour on stock market reaction of listed companies in Kenya. Specifically, the study determined the effect of investor herd behaviour on stock market reactions of listed companies in Kenya; determined the effect of investor loss aversion on stock market reactions of listed companies in Kenya; determined the effect of investor mental accounting on stock market reactions of listed companies in Kenya; and determined the effect of investor overconfidence on stock market reactions of listed companies in Kenya. The target population was 67 listed companies at the Nairobi Securities Exchange. A sample of 48 listed companies was used for analysis. Secondary data extracted from NSE historical data of listed companies for the period 2004 to 2016 was used for a...
Economic development will be sustainable only if it is pursued in a manner which protects the env... more Economic development will be sustainable only if it is pursued in a manner which protects the environment, and that there is a need to pay greater attention to the management of water, forest and land resources. Rising pressures on the environment and increasing environmental consciousness have generated the need to account for the various interactions between all sectors of the economy and the environment. Environmental accounting is the ability to provide accurate information in the financial statements regarding the estimated social cost occasioned by the production externalities on the environment and how much deliberate intervention cost had been incurred to bridge the gap between the marginal social cost and the marginal private cost by a firm. Environmental reporting has been seen as a way of increasing accountability of organizations regarding environmental issues. Environmental accounting is an inclusive field of accounting. It provides reports for both internal use, genera...
Since 1993 when the floating exchange rate regime was established in Kenya, the country has exper... more Since 1993 when the floating exchange rate regime was established in Kenya, the country has experienced tumultuous times regarding fluctuations in exchange rates. This continuous volatility has increased foreign exchange risk exposure which in turn has raised transaction costs of companies. Naturally, higher transaction costs results in lower profitability which subsequently affects the market prices of traded stocks. During the period 2008 to 2015, the Kenyan currency market experienced significant fluctuations in exchange rates – topping at the all-time high of Kshs 110 to the US dollar. This coincided with a period of depressed performance in the Nairobi Securities Exchange with regard to capitalization. This study sought to examine the effect of fluctuations in exchange rates on share prices of the listed companies in Kenya. Both the flow-oriented theory of exchange rates and efficient market hypothesis formed the theoretical foundation of the study. The study employed a longitu...
Nairobi Securities Exchange has witnessed cases of stock market reactions as a result of extreme ... more Nairobi Securities Exchange has witnessed cases of stock market reactions as a result of extreme price volatility which point to the possibility of underlying inefficiencies that impacts on the shareholder value. Such market reactions are as a result of irrational investor behavior leading to market inefficiencies. A challenge to Efficient Market Hypothesis is that individuals often overreact and underreact to news causing stock markets to react according to investor behaviour in their investment decision making. Generally, the study determined the effect of investor behaviour, on stock market reaction of listed companies in Kenya. Specifically, the study determined the effect of investor herd behaviour on stock market reactions of listed companies in Kenya; determined the effect of investor loss aversion on stock market reactions of listed companies in Kenya; determined the effect of investor mental accounting on stock market reactions of listed companies in Kenya; and determined t...
Nairobi Securities Exchange has witnessed cases of stock market reactions as a result of extreme ... more Nairobi Securities Exchange has witnessed cases of stock market reactions as a result of extreme price volatility which point to the possibility of underlying inefficiencies that impacts on the shareholder value. Such market reactions are as a result of irrational investor behavior leading to market inefficiencies. A challenge to Efficient Market Hypothesis is that individuals often overreact and underreact to news causing stock markets to react according to investor behaviour in their investment decision making. Generally, the study determined the effect of investor behaviour, on stock market reaction of listed companies in Kenya. Specifically, the study determined the effect of investor herd behaviour on stock market reactions of listed companies in Kenya; determined the effect of investor loss aversion on stock market reactions of listed companies in Kenya; determined the effect of investor mental accounting on stock market reactions of listed companies in Kenya; and determined t...
The main behavioral bias important in order to understand the trading puzzle is overconfidence. I... more The main behavioral bias important in order to understand the trading puzzle is overconfidence. Investor overconfidence behavior is the tendency to be more confident in our ability to act ethically than is objectively justified by our abilities and moral character. Investor overconfidence behavior shows why investors trade the way they do and the judgements they make in their investment decision making leading excessive trading. The objective of the study was to determine the effect that investor overconfidence behavior on stock market reaction in Kenya. The target population was 67 listed companies at the Nairobi Securities Exchange. A sample of 48 listed companies was used for analysis. Secondary data extracted from Nairobi Stock Exchange historical data of listed companies for the period 2004 to 2016 was used for analysis. The study adopted quantitative research design. Unit root results showed that the variables were stationary. Panel data regression was used to analyze data. Pa...
A challenge to EMH is that individuals often overreact and underreact to news causing stock marke... more A challenge to EMH is that individuals often overreact and underreact to news causing stock markets to react according to investor behaviour in their investment decision making. Generally, the study determined the effect of investor behaviour on stock market reaction of listed companies in Kenya. Specifically, the study determined the effect of investor herd behaviour on stock market reactions of listed companies in Kenya; determined the effect of investor loss aversion on stock market reactions of listed companies in Kenya; determined the effect of investor mental accounting on stock market reactions of listed companies in Kenya; and determined the effect of investor overconfidence on stock market reactions of listed companies in Kenya. The target population was 67 listed companies at the Nairobi Securities Exchange. A sample of 48 listed companies was used for analysis. Secondary data extracted from NSE historical data of listed companies for the period 2004 to 2016 was used for a...
Economic development will be sustainable only if it is pursued in a manner which protects the env... more Economic development will be sustainable only if it is pursued in a manner which protects the environment, and that there is a need to pay greater attention to the management of water, forest and land resources. Rising pressures on the environment and increasing environmental consciousness have generated the need to account for the various interactions between all sectors of the economy and the environment. Environmental accounting is the ability to provide accurate information in the financial statements regarding the estimated social cost occasioned by the production externalities on the environment and how much deliberate intervention cost had been incurred to bridge the gap between the marginal social cost and the marginal private cost by a firm. Environmental reporting has been seen as a way of increasing accountability of organizations regarding environmental issues. Environmental accounting is an inclusive field of accounting. It provides reports for both internal use, genera...