dc.contributor.author | Kuria, John N | |
dc.date.accessioned | 2013-05-11T11:05:07Z | |
dc.date.available | 2013-05-11T11:05:07Z | |
dc.date.issued | 2000 | |
dc.identifier.citation | Masters of business administration | en |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/21989 | |
dc.description.abstract | This study investigates the relationship between dividend policy and return on
assets, return on equity and growth in assets. The study relies on companies
quoted at the Nairobi stock Exchange to bring out the relationship between
dividend policy and return on assets, return on equity and growth in assets.
The analysis reveals that companies like Limuru Tea Co. Itd,Brooke Bond,
ICDC Investment, BAT Kenya and NIC Bank have maintained a very high
dividend payout ratio throughout the period of study. Some companies also
paid out dividends from the previous years profits like Kapchorua Tea
Company in 1994. Certain companies did not payout any dividends throughout
the period of study, such as Kenya orchards ltd.
The additional findings are that,
(i) The relationship between dividend payout and return on equity is not
significant. However in 1998 the relationship was found to be
significant.
(ii) The relationship between dividend payout ratios and return on assets
reveals that return on assets is significant. A possible interpretation is
that manager's look at return on assets in determining dividend
payout ratios.
(ii) The relationship between average growth in assets and dividend
payout ratio is not significant. However in 1995 the relationship was
significant.
From the findings the dividend payout ratios, return on assets, return on
equity and growth in assets have been decreasing over the period of study
which may suggest that managers are not necessarily using retained earnings
to generate greater returns for shareholders. | en |
dc.description.sponsorship | University of Nairobi | en |
dc.language.iso | en | en |
dc.title | A Study on Dividend Policies, Growth in Assets, Return on Assets and Return on Equity at the Nairobi Stock Exchange | en |
dc.type | Thesis | en |
local.publisher | school of Business, University of Nairobi | en |