IJSTR

International Journal of Scientific & Technology Research

Home About Us Scope Editorial Board Blog/Latest News Contact Us
0.2
2019CiteScore
 
10th percentile
Powered by  Scopus
Scopus coverage:
Nov 2018 to May 2020

CALL FOR PAPERS
AUTHORS
DOWNLOADS
CONTACT

IJSTR >> Volume 2- Issue 10, October 2013 Edition



International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616



Determinants Of Dividend Payout Policy Among Non-Financial Firms On Nairobi Securities Exchange, Kenya.

[Full Text]

 

AUTHOR(S)

Maniagi G. Musiega, Dr. Ondiek B. Alala, Dr. Musiega Douglas, Maokomba O. Christopher, Dr. Egessa Robert

 

KEYWORDS

Key words; Dividend Policy, Homoscedasticity, Durbin Watson, Nairobi securities exchange,

 

ABSTRACT

ABSTRACT: The research paper examines determinants among dividend payout of non-financial firms listed on Nairobi Securities Exchange. The NSE has 50 listed non-financial companies as per NSE 2012 report. Purposive sampling technique was used anda sample of 30 non-financial companies for duration of five years from 2007 to 2011 was selected. Secondary data was collected from audited financial statements of companies from Nairobi Securities Exchange website and the websites of non-financial firms' .Dividend payout ratio was dependent variable while independent variables were profitability, Growth, current earnings, and liquidity. Size and business risk was taken as moderating variables. Descriptive statistics and multiple regressions were used. Return on equity current earnings and firms' growth activities were found to be positively correlated to dividend payout Business risk and size,both the two taken as moderating variables increase the precision of significant variables from 95% to 99% hence among major determinants of dividend payout.

 

REFERENCES

[1]. Pandey M.(2004) Financial management . vikas publishing house PVT limited.

[2]. Al-Kuwari, D. (2009), Determinants of the Dividend Payout Ratio of Companies Listed on Emerging Stock Exchanges: The Case of the Gulf Cooperation Council (GCC) Countries. Global Economy & Finance Journal Vol. 2 No. 2 . Pp. 38-63

[3]. Anupam. M. (2012) An Empirical Analysis of Determinants of Dividend Policy - Evidence from the UAE Companies. Global Review of Accounting and Finance Vol. 3.No. 1. 18 – 31

[4]. Abdullahi, R. (2011) Determinants of Dividend Growth Pattern of the Deposit Money Banks in Nigeria (A Study Of Selected Banks) A Thesis Submitted for the Degree of Masters of Science (M.Sc) in Accounting and Finance Of Ahmadu Bello University, Zaria.

[5]. Al-Malkawi, H. (2007). Determinants of Corporate Dividend Policy in Jordan: An Application of the Tobit Model. Journal of Economics and Administrative Sciences, 23 (2): 44-70.

[6]. Gordon J. Myron J. & Eli Shapiro, (1956), Capital Equipment Analysis: The Required Rate of Profit, Management Science 3, 102-110.

[7]. Talat A. &Hammad H. (2011) Do Mature Companies Pay More Dividends? Evidence from Pakistani Stock Market. Mediterranean Journal of Social Sciences Vol.2, No.2,

[8]. Daily nation 19th Jan. 2013

[9]. Nairobi securities exchange hand book 2012.

[10]. Brealey, R., & Myers, S. 2005, Principles of Corporate Finance. London: McGraw-Hill, pp. 155–167.

[11]. Chay J. &Suh.J. (2008). Payout policy and cash-flow uncertainty. Journal of Financial Economics 93:1, 88–107.

[12]. Fama, E., & French, K.,( 2001), ‘Changing Firm Characteristics or Lower Propensity’, Journal of Financial Economics, pp. 3–43.

[13]. Ahmed, H.&Javid, A.(2009) “The Determinants of Dividend Policy in Pakistan”, International Research Journal of Finance and Economics, Issue 29, p. 110-125

[14]. Ahmed, H., &Javad, A. (2009), ‘Dynamics and Determinants of Dividend Policy in Pakistan’, International Research Journal of Finance and Economics, Vol.28, pp. 56–61.

[15]. Sajid et al (2012) The Relationship between Dividend Policy and Shareholder’s Wealth” (Evidence from Pakistan) journal of Economics and Finance Review Vol. 2(2) pp. 55 – 59,

[16]. Arnott, D. &Asness, S. (2012) Does Dividend Policy Foretell Earnings Growth? Social Science Electronic Publishing, Inc

[17]. Hafeez, A. and Attiya Y.(2008) Dynamics and determinants of dividend policy in Pakistan evidence from Karachi stock exchange for non-financial listed firms. MPRA paper 37342

[18]. Hafeez. A. &Attiya Y (2008) Determinants of dividend policy in Pakistan .Munich Personal RePEc Archive

[19]. Amidu, M. &Abor, J. (2006). Determinants of the Dividend payout ratio in Ghana, The Journal of Risk Finance Vol. 7, N o. 2, 136-145.

[20]. Baker, K. & Gandhi, D. 2007, ‘The Perception of Dividends by Canadian Managers: New Survey evidence’, International Journal of Managerial Finance, Vol. 13 No. 1, pp. 70–91A

[21]. Aivazian, V.& S. Cleary, (2003), Do Emerging Market Firms Follow Different Dividend Policies From U.S. Firms? The Journal of Financial Research 26, 371-387.

[22]. Kun-Li L. &Chung-Hua S. (2012) The Impact of Corporate Governance on the Relationship between Investment Opportunities and Dividend Policy: An Endogenous Switching Model Approach Asia-Pacific Journal of Financial Studies (2012) 41, 125–145

[23]. Turki S. & Ahmed A (2013) Determination of Dividend Policy: The Evidence from Saudi Arabia. International Journal of Business and Social Science Vol. 4 No. 1;

[24]. Mohammed S.& Mohammed M (2012) A Worthy Factors Affecting Dividends Policy Decisions An Empirical Study on Industrial Corporations Listed in Amman Stock Exchange Interdisciplinary Journal of Contemporary Research in Business Vol 4, No 5

[25]. Taher A. (2012) Determinants of dividend payout policy: Evidence from Bangladesh. International Journal of Economic Practices and Theories, Vol. 2,

[26]. AL- Shubiri F. 2011. Determinants of Changes Dividend Behavior Policy: Evidence from the Amman Stock Exchange Amman Arab University Jordan College of Business, Department of Finance and Banking Groppelli and Nikbakht.

[27]. Eriotis, N. (2005) “The Effect of Distributed Earnings and Size of the Firm to Its Dividend Policy: Some Greek Data” International Business and Economics Journal, Vol. 4(1): 67-74.

[28]. Mahira K. (2012) Factors Affecting Dividend Payout Evidence From Listed Non-Financial Firms of Karachi Stock Exchange Business Management Dynamics Vol.1, No.11, pp.76-92

[29]. Adaoglu, C.(2000), Instability in the Dividend Policy of the Istanbul Stock Exchange (ISE) Corporations: Evidence from an Emerging Market, Emerging Markets Review 1, 252-270.

[30]. Naceur, S., &Goaied, M. (2006), ‘The Relationship Between Dividend Policy, Financial Structure, Profitability and Firm Value’, Applied Financial Economics, pp. 843–852.

[31]. Baker, H & Powell, G. (2001). “Factors Influencing Dividend policy decisions of Nasdaqfirms ”Financial Review, 36 (3):780

[32]. Ahmad, H.& Carlos J.(2008) The financial factors influencing cash dividend policy: A sample of U.S. manufacturing companies Inter Metro Business Journal Fall 2008 / Vol. 4 No. 2 / p. 23

[33]. Hassan, M. &Hosny I.(2012) Dividends Policies in an Emerging Market International Review of Business Research Papers Vol. 8. No.2. Pp. 12 – 28

[34]. Chia-Ying C. et al. (2012) The Effects of Executive Stock Options and Stock Bonuses on Payout Policies in Taiwan Asia-Pacific Journal of Financial Studies (2012) 41, 146–174

[35]. Syed Z. &Wasim U. (2011) Impact Of Ownership Structure on Dividend Policy of Firm (Evidence from Pakistan) 2010 International Conference On E-Business, Management and Economics IPEDR Vol.3 (2011) IACSIT Press, Hong Kong

[36]. Hamid U. &Asma F.(2012) the Impact of Ownership Structure on Dividend Policy Evidence from Emerging Markets KSE-100 Index Pakistan. International Journal of Business and Social Science Vol. 3 No. 9;

[37]. LaPorta R, Lo´ pez-de-Silanes F, Shleifer A, Vishny R (2000). Agency problems and dividend policies around the world. Journal of Finance., 55: 1-33.

[38]. Anil, K., & S. Kapoor. 2008. Determinants of dividend payout ratios: A study of Indian information technology sector. International Research Journal of Finance and Economics 15 (May): 63–71.

[39]. Khan M. & Jain P.(2008) Financial management, text problems and cases. Tata McGraw- Hill publishing company limited New Delhi India

[40]. Jingyu L. (2003) dividend clienteles’ financial leverage clienteles and determinant of dividends policy under new zae land imputation tax regime. A PHD thesis Massey university.

[41]. Alsaeed, K., (2005). “The association between firm-specific characteristics and disclosure: the case of Saudi Arabia”. The Journal of American Academy of Business, Vol.7 No. 1, PP 310-321.

[42]. Cooper, D. & Schindler, P.(2003). Business research methods (8th ed.). Boston: MA: McGraw Hill

[43]. Hair, B. &Tatham (2010) Multivariate data analysis.7th edition Prentice Hall

[44]. Hair et al (2006) Multivariate analysis. Pearson publishers.