DETERMINANTS OF BEAR MARKET PERFORMANCE AT THE NAIROBI SECURITIES EXCHANGE IN KENYA

This study sought to establish the determinants of bear market performance by taking a survey of investors at the Nairobi Securities Exchange. Convenient sampling technique was used to administer questionnaires to respondents. Data was analyzed by the use of descriptive statistics and correlation analysis was carried out to determine the relationship between the variables. A logit regression model was employed to analyze the independent variables and their effect on bear market performance. The Pearson Moment correlation analysis showed that bear market performance was weakly associated with transaction costs and financial literacy while the relationship between bear market performance and mobilization of resources by retail investors as well as cultural values was largely insignificant. The study recommends that further research should be carried out on the economic cycle and its influence on bear market performance.