Abstract: The main objective of this study was to establish the effect of behavioural biases on investment in the Rwanda Stock Exchange. The specific objectives were to establish the effects of self-serving bias, over-optimism bias, loss aversion, self- attribution bias and confirmatory bias on investment in the Rwanda stock exchange. The prospect theory, heuristics theory and herding theory formed the foundation of this study. The underlying epistemology of this research was positivist; focusing on examining earlier established theories under the assumption that reality is objectively given and can be described by measurable properties independent of the observer and the instruments. The study used cross-sectional descriptive survey research design to ascertain and establish the effect of behavioural biases on investment in the Rwanda stock exchange. The target population comprised of 13,543 individual, group investors at the Rwanda Stock Exchange. Random sampling was used where the targeted population was individual investors to finally yield a sample size of 374 respondents. A questionnaire was used to collect the primary data. Data analysis involved the use of descriptive and inferential statistics. A linear regression model was used to predict the probability of different possibility outcomes of dependent variables, helping to predict the probability of an investor to invest in Rwanda Stok Exchange. The results confirmed that there was a significant positive linear relationship between self-serving bias, over-optimism bias, loss aversion bias, self-attribution bias, confirmatory bias and Investment in Rwanda stock market. The study also concluded that most investors suffered from behavioural biases in investment in stock markets. The study further recommends that the individual investors to seek the advice of stock brokers/fund managers to advise them accordingly in terms of performance of a specific security in which an investor would wish to invest in.Abstract: The main objective of this study was to establish the effect of behavioural biases on investment in the Rwanda Stock Exchange. The specific objectives were to establish the effects of self-serving bias, over-optimism bias, loss aversion, self- attribution bias and confirmatory bias on investment in the Rwanda stock exchange. The prospect theory, he...Show More
Abstract: The emergence of Automated Teller Machines (ATMs) has caused the greatest transformation in the banking industry. Its introduction significantly revolutionized the practice of banking by availing accessibility on a 24-hour day basis and reducing substantially the number of bank tellers. Despite this transformation and 23 years after the first ATM was introduced in Kenya, the ATMs have not achieved full adoption. The ATM usage stands at 13.4% nationally. This study therefore sought to explore the effectiveness of strategies applied by commercial banks in Kenya so as to achieve the full adoption of ATMs by customers. The exploratory research design was used in this study with a target population of 128,458 bank customers. Stratified random sampling was used to get a sample size of 384 bank customers and census survey was conducted for the 8 bank managers in the 8 commercial banks of Embu West district. Data collection was done using two sets of questionnaires; one for the bank managers and another one for the bank customers. The tools were pre-tested at Chuka town in Meru South district on 19 bank customers and 4 bank managers. The pre-test obtained a reliability coefficient of 0.7483 on customers’ questionnaire and 0.7128 on bank managers’ questionnaire. The two set of questionnaires were thus considered reliable because the reliability coefficient exceeded 0.70. Data analysis was done using the descriptive and inferential statistics. The results obtained from the study implied that commercial banks’ strategies of accessibility, security, cost reduction, advertising, added benefits and market segmentation were significant in influencing customer usage of ATM cards. These findings would be useful in strategy evaluation by bank managers in improving the management of the ATM delivery channels.Abstract: The emergence of Automated Teller Machines (ATMs) has caused the greatest transformation in the banking industry. Its introduction significantly revolutionized the practice of banking by availing accessibility on a 24-hour day basis and reducing substantially the number of bank tellers. Despite this transformation and 23 years after the first ATM w...Show More