An Analysis Of The Relationship Between Dividend Changes And Future Profitability Of Companies Quoted At The Nairobi Stock Exchange
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Date
2006-07Author
Mulwa, Kennedy K
Type
ThesisLanguage
enMetadata
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This study sought to investigate whether or not there is a relationship between dividend
changes and future profitability. The major source of data was financial records of
publicly quoted companies obtained from the Nairobi Stock Exchange. Data from the
various companies was gathered and analyzed using both physical comparison and also
using the regression technique provided by SSPS package. The model was regressed and
the resultant equations were obtained. Each variable present in the model was tested for
its significance in the model using the T statistic and the F test. The model was then
tested to see how much the variables explain the variations as opposed to other variables
that were not being tested. The standard error for the model for each year was compared
and the results obtained indicate that dividend changes reflect future profits in a
company.
In conclusion it was obtained that a relationship does exist between dividend changes and
future profitability of a company
Citation
Masters thesis University of Nairobi (2006)Publisher
University of Nairobi. Faculty of Commerce
Description
Master of Business Administration