Browsing by Author "Mososi, Gilbert Oyugi"

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    Financial Behavioral Biases and Growth of Commercial Real Estate Investment Firms in Nairobi City County, Kenya
    (International Journal of Finance and Accounting, 2025-11) Mososi, Gilbert Oyugi; Gatauwa, James
    Purpose: The study aimed to examine the influence of financial behavioral biases on the growth of commercial real estate investment firms in Nairobi City County, Kenya. It specifically focused on assessing how heuristic biases, prospect-related tendencies, herding behavior, and market-influenced decision-making affect firm expansion within the commercial real estate sector. Methodology: A descriptive research design was employed, targeting 69 commercial real estate firms registered under the Kenya Property Developers Association (KPDA). From these firms, 276 key managers—finance, property, residential site, and portfolio managers—were identified as the target population. Using non-probability convenience sampling, 164 managers were selected to participate. Primary data were collected using structured questionnaires. Data analysis was conducted using SPSS version 22, employing both descriptive statistics (means, frequencies, percentages) and inferential statistical techniques. Findings: The study found that financial behavioral biases significantly and negatively influence the growth of commercial real estate investment firms. Investors demonstrated heightened sensitivity to losses compared to gains and displayed a tendency to rely on peer influence rather than professional advice. These biases contributed to suboptimal investment decisions and inaccurate assessments of property values. Unique Contribution to Theory, Practice and Policy: The study reinforces behavioral theory, heuristic constructs, and prospect theory by demonstrating their applicability in explaining decision-making behavior among real estate investors in emerging markets such as Kenya. The findings highlight the need for training managerial staff to identify and mitigate heuristic and cognitive biases, improve the quality of investment decisions, and minimize reliance on irrelevant or misleading information. The study recommends establishing a government-led regulatory authority to formulate comprehensive guidelines and oversight mechanisms aimed at enhancing investor education and promoting informed decision-making. Adoption of these measures is expected to support sustainable growth in Kenya’s real estate sector.