Determinants of dividend payments by the financial sector listed companies at the Nairobi Securities Exchange
This study investigates the determinants of dividend payments by the financial sector listed companies at the Nairobi Securities Exchange. It examines the theories for and against dividend policy. The study adopts data gathering techniques of using the questionnaires and personal interviews. Secondary data was also used by analyzing NSE records and the data readily available in the companies' websites. The study was done for twenty companies that are in the financial listed sector mainly banks, insurance and investment sectors. Data collected was analyzed quantitatively. Data analysis was conducted using descriptive statistics, which includes measures of central tendency, measures of variability and measures of frequency among others. The study found out that dividends declared by the financial listed companies at the NSE were done after the results were released. Inquiry was based on the company's liquidity position, earnings and leverage, the effects of profitable opportunities, and the company's debt to equity ratio on the dividend payout ratio.