DETERMINANTS OF BEAR MARKET PERFORMANCE: ACASE OF 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 500 retail investors as they conducted business through stock brokers. Data was analyzed by the use of descriptive statistics and correlation analysis was carried out to determine the relationship between the variables. ANOVA test at five percent level of significance was used to determine the relationship between the dependent and independent variables. A multiple 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 mobilization of resources by retail investors. The study recommends that further research should be carried out on the economic cycle and its influence on bear market performance.