| dc.description.abstract | The study intended to investigate whether the banding of
investors around equity securities is a discernible
phenomenon in the Kenyan investment situation. Companies were
divided into four groups defined by their respective dividend
yields to reflect the marriage between their dividend
policies and the market reactions there to. Data was collected on
the four groups of investors in terms of their demographic
characteristics
The findings of the study revealed that there are no
significant differences between the investors in the four groups
as regards the constituent investor demographic characteristics
except in terms of age, occupation and family size_Generally, the
study showed a slight indication of the non tax determined
clientele existence in Kenya, although the tax variable has been
regarded by the financial theory to be an important
consideration in equity stock selection. This reflects the less
sophisticatedness of the Kenyan investor, as a consequence of
which a clearly determinable bias can not be defined. The message
for the Kenyan manager is that Dividend policy variations still
cause ambiguous responses from the Kenyan investors and cannot be
strictly relied on in valuation considerations | en |
