Abstract:
This study focused on the evaluation on share price change in investment decision on stock exchange especially in Rwanda stock exchange (RSE). An evaluation was needed to find out whether the share price change were effective and whether it really has an impact on investment decision in Rwanda and most especially on Rwanda stock exchange. The objectives of this study were to analyze the effects of share price changes on investment decision RSE. Relevant methods were used to gather necessary data from various sources; either primary or secondary sources A sample size of 394 respondents selected according to the formula of Morgan. This sample was chosen because it is easier to manage and it was enough to generate findings as well as to generalize the findings to a bigger population. Collected data was analyzed and interpreted through SPSS (Statistical Package for the Social Sciences). Findings from this research revealed that share price change have a greater influence in investment decision on the Rwanda Stock Exchange. The research concluded that there is a positive relationship between share price change and financial actor investment decision at a very high extent. Therefore, without share price change the investment decision on the Rwanda Stock Exchange might be very critical. The results of the empirical analysis are consistent with most of the findings in the literature review and support the evidence that the selected determinants have significant effects on share price. Basing on results from the study, it was showed that there is strong investment indicators like volume of stocks traded, number of transitions and number of traded companies where the regression analysis used in this research, showed a significant relationship between share price and investment decision indicators. The research concludes that there is a positive relationship between share price change and investment decision at a very high extent.
