Shareholders' pressure on the firms decision to pay dividends at Nairobi Stock Exchange
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Date
2005-08Author
Ochola, Charles O
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
This study was conducted to assess the possible impact of shareholders
pressure on the decision of management to pay dividends for companies quoted
at the Nairobi stock Exchange.Data were collected in form of ordinary share
prices, dividends payments, dividend per share for the years 1996 to 2003.AII the
48 companies listed at Nairobi stock Exchange were examined. Price to book
ratio of dividend paying firms to non-dividend paying firms were empirically
tested. Further analysis confirmed that speculators identify non-payers that are
likely to pay dividends, and by paying a high price, put pressure on the shares of
such firms by way of additional demand and consequently on corporate
managers to pay dividends.
Publisher
University of Nairobi School of Business, University of Nairobi
Description
Master of Business Administration (MBA)