Determination Of Factors That Affect Dividend Payout: A Case Of Listed Firms At Nairobi Securities Exchange

Abstract

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.