School of Business
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Item Determinants Of Dividend Payout In Kenya; Evidence From Manufacturing Firms Listed In The Nairobi Security Exchange(Kca University, 2017) Malietso, Oscar M.iii ABSTRACT The study investigated determinants of dividend pay-out among manufacturing firms listed in Nairobi Security Exchange that covered duration of 10 years effective from 2007 to 2016. Secondary data which comprised of audited financial statements was obtained from the website of the Capital Market Authority. Purposive sampling technique was applied to select 7 firms out of the 10 listed manufacturing firms. Dividend Pay-out measured by dividend per share over earnings per share is the dependent variable while Profitability, Liquidity and Leverage were predictor variables being investigated while Firm size was applied as a Moderating variable. Random Effect Tobit Model is applied in regression due to its suitability to accommodate zero censored values constituted among dependent variable. In addition, Descriptive Statistics is used for analytical purposes on data sampled in aspect of mean, mode and variance. Findings of the research reveals that Liquidity whose p-value is 0.097 hence greater than 0.05 (p > 0.05) insignificantly influences dividend pay-out. However, Leverage and Profitability do have p-values of 0.002 and 0.003 respectively which is less than 0.05, implying they significantly determine how manufacturing firms pay dividend to investors. Moderating variable Firm size increases precision of significance of the model from 0.15 to 0.02 hence considered as significant determinants of dividend pay-out. Based on this outcome, management ought to not only exercise due diligence when borrowing to prevent an entity from liquidation but also invest in noble projects that are geared towards profit maximization as empirically proven by the study. Future research in this context should consider inclusion of more independent variables like Earnings per share, like business risk, earnings per share, taxation, ownership in so doing accuracy is enhanced on proportionality of influence per variable on dividend pay-out. However, component of entity in terms of sector and economic empowerment of a region is paramount since it has a bearing on the end results of the entity which obvious play a vital role on how dividend is issued as alluded by Amarjit et al., (2010). Finally, the outcome of this study will enable potential investors understand the parameters to consider while making decision to invest in Kenya’s manufacturing firms not forgetting insight to management on impact of dividend pay-out to entity reputation as proclaimed in signalling theory.Item Determination Of Factors That Affect Dividend Payout: A Case Of Listed Firms At Nairobi Securities Exchange(KCA University, 2014) Aghan, Innocent T.Dividend payout has been for many years a focus of debate in financial literature. This study aimed at empirically examining the factors that affect dividend payout among firms listed at the Nairobi Securities Exchange. The variables that where considered are profitability, liquidity, industry dummy and growth with the control variables being firm size and leverage. The study considered a sample of three companies from each sector of the economy as represented in the Nairobi Securities Exchange, measured for a period of five years from 2008 to 2012. Data collected was secondary in nature, collected from annual financial reports as reported by the sampled companies.Item Effect Of Financial Management Decisions On Performance Of Manufacturing Firms Listed On Nairobi Securities Exchange(Kca University, 2016) Muinde, Isaac M.The effect of finance management on manufacturing firm performance in Kenya needs to be studied. Using panel research design, the study seeks to investigate the effect of finance management decision on listed manufacturing firm performance in 2005 to 2014. Specifically the study seeks to establish the effect of leverage and manufacturing firm performance among listed companies in NSE. To determine the effect of investment decision on manufacturing firm performance, to find out the effects of dividend policy on manufacturing firms' performance and to establish the effect of working capital on manufacturing firm performance. The target population of this study was all the nine manufacturing listed companies in Kenya. The study was based on secondary data which was collected from the published annual reports for listed companies manufacturing firms in (2005-2013). Both Microsoft excel and E views 8 were used to analyse the data. A graphical method was used to explore the data. Panel regression analysis was used to examine the relationship between independent and dependent variables. Results of the study revealed that there was negative relationship between investment and EBIT while leverage, dividend, working capital and total assets had a positive relationship with EBIT. There was a positive relationship between annual sales and investment, leverage, dividend, working capital and total assets. There was a positive relationship between leverage, dividend, working capital, total assets and gross profit while investment had an inverse relationship. The firms should examine their credit rating, predict their chances of bankruptcy. Secondly, they should evaluate all the investment decisions to ensure that they attain optimal benefits from all capital expenditure. Manufacturing company annual dividend policy ought to be examined to ensure that it meets the unique needs of all investors. The firms should evaluate the working capital decision so that they can adapt the optimal working capital cycle.