| dc.description.abstract | The study tries to evaluate the relationship between stock market returns, dividends, and profit before tax and sales turnover. The study is based from year 2000 to 2004 for all the companies listed in Nairobi Stock Exchange (NSE).
Studies have shown that earnings announcements have the effect in price movements of the stock market prices. This suggests that based on quarterly earnings, an investor can make a decision whether to invest on the company based on the profitability. Sales turnover depicts the market share that a company commands in its industry, which is dependent upon the demand. A company that has high demand for its product increases its profitability hence higher dividend payouts are expected.
The study has shown that there is no significant relationship between the stock market returns and: dividend, profit before tax and sales turnover. Stock market returns change depending on the price movements in the stock market. Other studies have shown that stock market prices movements are affected by psychological perception of the investors, which may lead to overreaction of stock prices. Performance of stock market returns is also dependent upon the efficiency in which the information is incorporated in stock prices | en |
