| dc.description.abstract | Dividend smoothing is when you keep your dividends relative to your Earnings per share.
Not too high dividends and not too low. It may also imply setting a dividend price that
does not necessarily conform to retained earnings. The dividend smoothing decision can
affect the value of the firm by changing the firm’s expected earnings in the preceding
years, its cost of capital or both. One of the most important objectives of determining
factors leading to dividend smoothing of the firm is to ensure that we maximize
shareholders wealth while we protect the value of the firm in terms of retained earnings.
This project was on the determinants of dividend smoothing in the Kenyan firms with
special reference to those listed in the NSE. This study sought to establish the
determinants of dividend smoothing of the listed companies in Kenya. The study focused
on the firms that have been paying out dividends in the last five years. Expectedly, the
results of the study were sufficient to give an insight into the determinants of dividend
smoothing among the listed companies in Kenya, which were: size of the firm, firms
earning and profitability, firms agency conflict, ownership structure, taxes, information
asymmetry and growth stage of the firm. The study employed univariate analysis and
multiple regressions to measure the impact of the different factors on the company’s
dividend payout. The data that was used was for the last five years that is; from 2008 to
2012 since the more recent the data the more it is likely to give the true representation in
the industry. | en_US |
