| dc.description.abstract | This paper sought to establish the determinants of dividend payout for companies
listed at Nairobi Securities Exchange (NSE). The objective of the study was to
establish how and the extent to which company earnings, liquidity, profitability, and
company size determine dividend payout for firms listed at the NSE. The study relied
on secondary data which was analysed using SPSS software version 20 and the results
presented in tables. The results consistently support the potential association between
the four independent variables and the dependent variable (dividend payout) for firms
listed at the NSE. Earnings, profitability and company size had a positive correlation
with dividend payout while liquidity had a negative correlation with dividend payout.
At 5% level of significance, earnings, liquidity and profitability were found to be
statistically significant while company size was not significant. The study used the Fstatistic
to test the overall significance of the regression model and the model was
found statistically significant and suitable for this study. The model had an R2 of
0.7769 implying that variations in the four independent variables accounted for 77.7%
of variations in the dependent variable which was further proof thatthe model was
statistically significant and suitable for the study since it explained nearly all the
variability of the dependent variable. It is against this backdrop that this research
study arrived at conclusions including that profitability had the greatest influence on
dividend payout for firms listed at the NSE and recommended among others, that
companies listed at the NSE observe and manage well their policies dealing with the
four independent variables. Finally, the study made various recommendations among
them, further similar research using multiple economic factors. This will enable a
thorough research as it gives a wholesome approach to establishing determinants of
dividend payout for firms listed at the NSE. | en_US |
