Effect of Age on Investor Decisions

Abstract

This research paper seeks to identify the effect of age on investor decisions at the Nairobi Securities Exchange, Kenya. A total of 57 investors responded. Data collected for this study was analyzed using descriptive statistics and Pearson Chi-square test. The results indicated that investors of all ages considered (18-30 years, 31-40 years, 41-50 years, above 50) were affected by the behavioral biases (overconfidence bias, Representativeness bias, Confirmation bias and Disposition effect). A significant relationship between age and overconfidence bias was exhibited. However, the relationship between age and Representativeness bias, Confirmation bias and Disposition effect was found to be insignificant at 5% significance level.