The Relationship Between Dividend Policy and Stock Price Volatility: a Case of Companies Listed at Nairobi Securities Exchange
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Date
2013-10Author
Onchiri, Mosley O
Type
ThesisLanguage
enMetadata
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The objective of the study was to determinethe relationship between dividend policy and
share price volatility and also to determine other factors which may have potential
influence on share price volatility for firms listed at Nairobi securities exchange. The
study covered the period 2008-2012. A sample of 30 companies which were continuously
listed and paid dividends continuously for the five year period was used to make
generalization about the population. The study employed correlational descriptive
research design to deduce the relationship between dividend policy (measured by
dividend yield and payout ratio) and share price volatility after controlling for long term
debt, firm size and growth in assets. The study used the multiple linear regression model
and from the analysis of the modelthere was no evidence of significant relationship
between dividend policy and share price volatility at 5% level of significance. Also none
of the control variables used had a significant relationship with share price volatility at
5% level of significance.
Citation
A Research Project Submitted In Partial Fulfillment Of The Requirement For The Award Of The Degree Of Master Of Business Administration School Of Business, University Of NairobiPublisher
University of Nairobi School of Business