Herding Behavior in the Nairobi Securities Exchange*

Authors

  • Hamid Tabesh University of Wisconsin- River Falls
  • Logan Kelly University of Wisconsin- River Falls
  • Collins Poulose University of Wisconsin- River Falls

DOI:

https://doi.org/10.33423/jabe.v20i3.340

Keywords:

Business, Economics, Finance

Abstract

In this study, we use 2010-15 daily data stock market from the Nairobi Securities Exchange (NSE) to investigate herding behavior among NSE market participants. We examine the impact of rising andĀ falling markets, as well as exogenous factors such as political and regulatory instability, on herding behavior. Our findings are twofold. First, herding behavior differs by sector, moreover, each sector responds differently to rising and falling markets. Thus, failing to consider each sector separately may mask herding behavior. Second, herding behavior is most pronounced from 2013 through 2014, which was a time of both political and regulatory instability for Kenya.

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Published

2018-07-30

How to Cite

Tabesh, H., Kelly, L., & Poulose, C. (2018). Herding Behavior in the Nairobi Securities Exchange*. Journal of Applied Business and Economics, 20(3). https://doi.org/10.33423/jabe.v20i3.340

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Section

Articles