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The Influence of Board Characteristics on Dividend Policy

Author

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  • Peter Anjeyo Vuhyah
  • Ondiek Benedict Alala
  • Denis Bulla

Abstract

Dividend payout is one of financial options that Saccos consider as part of the key performance indicators for Saccos. Deposit taking Saccos in Kenya have faced numerous challenges namely, governance, managerial and operational such that the performance of a number of them continues to be sub optimal according to the report by SASRA. Therefore, this study sought to examine the influence of board characteristics on dividend policy of deposit taking Saccos in Kenya under guidance by agency cost theory. The study utelized causal design and descriptive survey design. The targeted population was 403 stakeholders sampling 201 through stratified simple random sampling. The sacco directors/chairpersons and the CFO/CEOs formed unit of analysis. Closed ended questionnaires were applied for primary data. A list of 20 Saccos in Starehe Sub County, Nairobi County were basis for pilot test to establish reliability and validity of research instruments. Cronbach Alpha was employed to ascertain reliability, whereas content and construct validity were utilized to attain validity. The data underwent analysis through the application of descriptive as well as inferential statistics. The investigation ensured that the assumptions of linear regression were satisfied before conducting numerous linear regressions. Tables were used to present data. The results indicated a positive significant association between board characteristics practices and dividend policy P:0.000

Suggested Citation

  • Peter Anjeyo Vuhyah & Ondiek Benedict Alala & Denis Bulla, 2024. "The Influence of Board Characteristics on Dividend Policy," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 13(3), pages 01-10, September.
    • Handle: RePEc:rbs:ijfbss:v:13:y:2024:i:3:id:3596
    DOI: 10.20525/ijfbs.v13i3.3596
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    References listed on IDEAS

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