The Effect of Non-payment Dividend Policy on the Value of Investment Category Firms Listed at the Nairobi Securities Exchange
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Date
2015-10Author
Ongeta, Peter M
Type
ThesisLanguage
enMetadata
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This study was on the effect of non-payment dividend policy on the value of
investment category firms listed at the Nairobi Securities Exchange. The research
objective was to establish the effect of non-dividend payment on value of investment
firms listed on the Nairobi Securities Exchange. The results will assist in the
understanding of how non-dividend payment policy influences a firm’s value. Firms
can then make use of such information to implement a non-dividend payment policy
which satisfies its shareholders expectations. The value of the firms with the policy of
non-payment was compared with those which pay dividends. The firm will also
ensure that the non-dividend policy implemented is not negatively affected by the
firm’s value since a decline in firms value can be interpreted in terms of worse times
ahead for such a firm. The research was based on the investment firms consistently
listed at the NSE for the five years’ period from 2010 to 2014 inclusive. Data on listed
firms is readily available and regarded credible for use. Five firms were used in the
analysis upon which regression analysis and the SPSS analytical software were used
to analyze the data. The research found that there was a significant relationship
between non-dividend payment policy and firms value. Firm’s value was also found
to vary in the different years under study. Non-Payment policy was therefore one of
the factors that influenced the value of the firm though further research is therefore
necessary to establish the effect of the same in other categories of firms listed on
Nairobi Securities Exchange and other firms not listed.
Publisher
University of Nairobi