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- W2116366996 abstract "The behaviour of dividend policy is one of the most debatable issues in corporate finance literature and still keeps its prominent place both in developed and emerging markets. Many researchers have tried to uncover the issue regarding dividend behavior or dynamics and determinants of dividend policy but we still do not have an acceptable explanation for the observed dividend behavior of firms. This study sought to establish the effects of dividend payout on market value among listed banks in Kenya. The general objective of this study was to establish the effects of dividend payout on market value among listed banks in Kenya. The study specifically sought to determine whether capital structure, corporate earnings, dividend payout ratio and capital market investments have any effect on market value among listed banks in Kenya. The study adopted descriptive research design. The target population was all the 10 listed banks in Kenya as at December 2010. All the ten banks listed at the period of study were involved in the study. A census survey was adopted as its sampling design. The study used both secondary and primary data. The secondary data was obtained from Nairobi Securities Exchange for the period between 2006 and 2010 while the primary data was collected from senior finance officials through an interview schedule. There was a 70% response rate from the primary data sources. Data collected was analyzed using both descriptive and inferential statistics. Data analysis was done with the aid of Statistical Package for Social Sciences software. The study found a significant and positive relationship between market value and capital structure, corporate earnings, dividend payout ratio and capital market investments in most of the years. It therefore concludes that the dividend policy adopted has a significant impact on market value of banks. The study concludes that there is a relationship between capital structure and market value among listed banking companies in Kenya. The study recommends that commercials banks should consider their profitability, pattern of past dividends, investment opportunities, and capital ownership structure, shareholder’s expectations, tax position of shareholders and access to capital markets in designing a dividend policy. The study also recommends that banks should consider the financial needs of the firms when designing the dividend payout policy." @default.
- W2116366996 created "2016-06-24" @default.
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- W2116366996 date "2014-12-01" @default.
- W2116366996 modified "2023-09-26" @default.
- W2116366996 title "Effect of Dividend Payout on Market Value of Listed Banks in Kenya" @default.
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