A Test of Behavioural Finance in the Nigerian Capital Market

Abstract

This study examined the test of behavioural finance factors in the Nigerian Capital Market. Data were collected from the capital market stakeholders through a Likert Scale questionnaire and descriptive statistics were used for the analysis. A total of 350 questionnaires were distributed but only 300 were retrieved and used. The findings of the study are that there was a strong evidence that the behavioural finance factors such as overconfidence bias, loss aversion bias and anchoring bias exist in the Nigerian capital market and also shows that the behavioural finance factors have positive significant relationship. A major recommendation of the study is that the security market analyst should provide reliable methods of dispersing information about the market to the public in order to create a strong confidence level when embarking on investments in the Nigerian capital market.