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

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.