Effect of Anchoring Heuristic on Financial Performance of Small and Medium Enterprises in Nairobi, Kenya: The mediating role of Investment Decisions

Koech, Alex

doi:10.29226/tr1001.2020.223

Cited by 3 publications

(3 citation statements)

References 15 publications

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“…It can be deduced that women entrepreneurs having high availability heuristics are less prone to attaining financial knowledge for investment purposes. Koech (2021) argues that availability heuristics have an impact on financial knowledge's attainment. Thus, availability heuristics and financial literacy may uncover an important relationship that could result in greater financial performance.…”

Section: Availability Heuristic and Financial Literacymentioning

confidence: 99%

Investigating The Mediating Role of Financial Literacy on The Relationship Between Women Entrepreneurs’ Behavioral Biases and Investment Decision Making

Iram

Bilal²,

Ahmad³

2023

GADJAH MADA INT. J. BUS.

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This study investigates the theoretical link between heuristic behavioral factors and the investment decision-making of women entrepreneurs, focusing on the importance of financial literacy as a potential mediator shaping prudent decision-making. We argue that women’s financial literacy is an efficient way to apply behavioral considerations in wise decision making. Using the proportionate stratified sampling method, we collected data from women entrepreneurs who were formally registered in Punjab Province, Pakistan. Owing to the complex model and small sample size, the smart PLS method was applied to analyze the structural relationship between the measured and latent constructs. The results show that overconfidence and availability heuristics have a significant positive impact on investment decisions, while financial literacy plays an essential intervening role between the overconfidence heuristic, availability heuristic, and investment decision-making. Our results support the execution of financial literacy awareness among women entrepreneurs to stimulate their financial decision control and give them the independence to make prudent financial decisions.

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Section: Availability Heuristic and Financial Literacymentioning

confidence: 99%

Investigating The Mediating Role of Financial Literacy on The Relationship Between Women Entrepreneurs’ Behavioral Biases and Investment Decision Making

Iram

Bilal²,

Ahmad³

2023

GADJAH MADA INT. J. BUS.

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“…Their decision was influenced by their own behavior and psychological condition (Lutfi et al, 2016). According to Koech's (2020) research, the availability heuristic has an impact on SMEs' Performance. The availability heuristic consists of investment information, and the more information you have, the more positive the impact on SMEs' Performance.…”

Section: Financial Behaviormentioning

confidence: 99%

The Impact of Founder’s Financial Behavior Traits and Literacy on SMEs Performance: Empirical Evidence from SMEs in Indonesia

Gusman

Soekarno

Mirzanti

2021

J. Keuang. dan Perbank.

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This research focuses on the SMEs development evaluation of the impact of founder’s financial behavior, measured by behavioral characteristics of CEOs capacity for self-awareness, planning, and patience, also their knowledge about financial understanding which affect the ability to manage their performance of SMEs. The purpose of this research is to analyze and reduce the rate of failure of SMEs in Indonesia by pursuing the defined determinants from their behavioral traits and self-knowledge on financial understanding in decision making. This study uses a survey conducted across Indonesia, mainly on Java island, with the sample size of 482 SMEs. This research uses multivariate regression analysis as a tool for measuring the impact of founder’s financial behavior variables and financial literacy variable for SMEs performance as a dependent variable. DOI: 10.26905/jkdp.v25i3.5142

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“…This finding agree with the findings by (Kotut, 2003) who established that cash budgeting is useful in planning for shortage and surplus of cash and has an effect on the financial performance of the firms. Koech (2015) in his study express that organization ought to be managed adequately and productively to accomplish its objectives. The future of budgeting lies in making arrangements for value.…”

Section: Empirical Reviewmentioning

confidence: 99%

Influence of Cash Management Practices on Financial Performance of Deposit Taking Sacco’s in Kakamega County

MATIANYI,

NDIRANGU

2019

strategicjournals.com

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This study was on the influence of cash management practices on the financial performance of Deposit taking Saccos in Kakamega County. The theory that guided the study was liquidity management preference theory. The coverage of the study was based on the Saccos registered under SASRA in Kakamega County. The total target population was four Deposit taking Saccos in Kakamega County where it targeted three senior managers (Branch managers, operation managers and loan managers) Shareholders and Board of directors from the four deposit taking Saccos in Kakamega County. The sample size was ninety nine respondents which was formed using stratified random sampling technique. Descriptive research design was employed which demonstrated the relationships between the variables. Closed ended questionnaires was used as data collection instruments and was conveyed to the respondents through drop and pick technique. Data analysis and interpretation was done using quantitative method based on descriptive statistics such as measures of mean and measures of dispersion as well as inferential statistics mainly analysis of variance, multi-linear regression and bivariate Pearson correlation. Data processing and analysis was finally done by use of the SPSS software version twenty four. The correlation between cash management practices and financial performance was significant. The model was fit to predict financial performance using cash management. From the results it was concluded that cash management practices had explanatory power of change in the financial performance of deposit taking Saccos in Kakamega County. The study recommended introduction of other forms of loan guarantees for loan issuance since members" investments is on huge risk exposure when left only to members deposit guarantors.

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Effect of Anchoring Heuristic on Financial Performance of Small and Medium Enterprises in Nairobi, Kenya: The mediating role of Investment Decisions

Cited by 3 publications

References 15 publications

Investigating The Mediating Role of Financial Literacy on The Relationship Between Women Entrepreneurs’ Behavioral Biases and Investment Decision Making

Investigating The Mediating Role of Financial Literacy on The Relationship Between Women Entrepreneurs’ Behavioral Biases and Investment Decision Making

The Impact of Founder’s Financial Behavior Traits and Literacy on SMEs Performance: Empirical Evidence from SMEs in Indonesia

Influence of Cash Management Practices on Financial Performance of Deposit Taking Sacco’s in Kakamega County

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