The Relationship Between Dividend Payout and Performance of Savings and Credit Co-operative Societies in Nairobi County
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Date
2015Author
Matendechere, Everlyne, A
Type
ThesisLanguage
enMetadata
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The purpose of the study was to determine the relationship between dividend payout
and firm performance among Sacco’s in Nairobi County Secondary data on financial
performance from the sample of 179 Sacco’s was collected for the period 2010 till
2014. The study also used a questionnaire to collect primary data for purposes of
answering the research question. The research question used in the study was: (i) what
relationship exists between dividend payout and firm performance among Saccos in
Nairobi County. The data was analyzed by using descriptive statistics as well as
inferential statistics. Descriptive statistics was useful for coming up with an
understanding of the data and thus helped in organizing and summarizing of the data
while inferential statistics was to help in making of valid conclusions from the data.
Correlation and regression analysis was used in order to find the degree of
relationship and thus help in fulfilling the purpose of the study. The results of the
relationship between dividends and firm performance showed that there exists a
relationship between dividends and firm performance. There was a positive relation
between net profit after tax and total assets, revenues and dividends as shown by the
positive coefficients. The results also showed that the extent of the relationship
between dividends and firm performance was significant. This in fact shows that
dividends have a significant influence on firm performance as do revenues and total
assets. The study recommends that firms should pay dividends since they are relevant
and they affect the value of the firm. In addition dividends are a signal to investors and the market of how the firm is performing
Publisher
University of Nairobi