Abstract |
Abstract
The Nairobi Stock Exchange (NSE) has, as of 2007, 50 companies listed.
In general, the NSE does not seem to be a major factor in the economy of the
country. In this study we examined the factors that might have motivated the
managers of NSE listed companies to pay dividends. This was done through multiple
regression analysis of dividends paid as well as by a survey of company
mangers. Dividends are strongly related to net income and to liquidity and they
are negatively related to the existence of investment opportunities. These
findings are in accord with received finance theory, but they have not
previously been examined in the Kenyan context
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