The influence of peers on investment decisions: the case of university undergraduates in Kenya
People's choices often look like the choices made by those around them. Such peer effects have been analyzed across different fields. These have been motivated by concerns of herding and financial l market instability which are all factors under the field of behavioral finance studies. This study is aimed at seeking to test how undergraduate students in Kenya make their investment decisions. It will thus be worth establishing whether the investors' decisions vary with each respondent's source of investment inform at ion. The study then focuses on the factor of peer influences the investment decision making of the sampled demographic In this study 206 individuals from three leading universities of Kenya completed questionnaires which were meant to determine the existence of their influences by their peers while making their investment decision. The study used a multinomial regression analysis using the latest SPSS Software. The study finds out that indeed it is likely for university undergraduate students in Kenya to face influences by their peers when making investments. This information can be used further to inform the effectiveness of NSE and CME campaign on improving investment behavior and decisions making process among the young investors from the sampled demographics.