A Survey of Factors Affecting Dividend Policy for Firms Listed at the Nairobi Securities Exchange
Abstract
The research set to establish the determinants of dividend policy at the Nairobi Securities
Exchange (NSE). The research sought to determine the factors affecting dividend policy
for companies quoted at the Nairobi Securities Exchange. The study employed secondary
data evaluated using version 20 SPSS software version 20 and findings presented in
tables. The results supported the relationship between the subservient variable and the
explanatory variables leverage, liquidity, company size, growth and profitability. There
was a direct correlation to size, growth and profitability while leverage and liquidity were
negatively correlated. At a 5% level of significance, size, leverage, liquidity profitability
were found to be statistically significant while company growth was not significant. F
statistic was employed to check the general significance of the regression model and
found the model statistically significant and suitable for the study. The model was found
to be statistically significant with an R2 of 0.7129 inferring the variations in the five
explanatory variables attributed to 71.29% of variations in the subservient variable which
further proof that the model was statistically significant and suitable for the study. The
research concluded that profitability substantial in explaining dividend policy for
companies listed at the NSE and recommended that profitability should be maintained at
high levels to influence better dividend policy and monitor variables that are negatively
correlated to dividend policy among others. Further research should be conducted on
other macro-economic factors that influence dividend policy to enable making decisions
on an optimum dividend policy.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-ShareAlike 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-sa/3.0/us/Collections
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