Abstract

http://ssrn.com/abstract=1597326
 


 



The Social Structure of Speculation: Investor Attributes and Short Term Share
Ownership in Kenya’s Emerging Stock Market


Christopher B. Yenkey


affiliation not provided to SSRN

August 2, 2010


Abstract:     
This study examines how investors of varying levels of wealth, experience in and proximity to Kenya’s emerging stock exchange take advantage of short term profit opportunities in a politically manipulated market characterized by significant early gains in IPO share prices. Analysis of individual-level data for all Kenyan IPO investors shows that first-time investors are often the most likely to sell shares in the first month of trading, while lower income investors quickly learn to imitate the speculative behaviors of institutional investors. Contrary to expectations, investors located in rural areas are often more likely to speculate than urban investors. Based on these results I argue that state policies in Kenya condition the investing public to adopt short-term orientations toward share ownership.

Keywords: Emerging markets, Speculation, Behavioral finance, Kenya, Market learning, Retail and institutional investors

working papers series


Not Available For Download

Date posted: April 30, 2010 ; Last revised: August 4, 2010

Suggested Citation

Yenkey, Christopher B., The Social Structure of Speculation: Investor Attributes and Short Term Share Ownership in Kenya’s Emerging Stock Market (August 2, 2010). Available at SSRN: http://ssrn.com/abstract=1597326

Contact Information

Christopher B. Yenkey (Contact Author)
affiliation not provided to SSRN
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