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Relationship Between Dividend Yield And Financial Performance Of Listed Firms At The Nairobi Securities Exchange

Author

Listed:
  • KEMBOI, Noah

    (Accounting and Finance Department, The Co-operative University of Kenya, Nairobi, Kenya.)

  • KINYARIRO, Dickson Kamau

    (Accounting and Finance Department, The Co-operative University of Kenya, Nairobi, Kenya.)

  • GESAGE, Methuselah Bichage

    (School of Business & Economics, The Co-operative University of Kenya, Nairobi, Kenya.)

  • MAINA, Justus Nderitu

    (Accounting and Finance Department, Kiriri Women’s University of Science & Technology, Kenya.)

Abstract

This study assessed the relationship between dividend yield and financial performance of the listed companies at Nairobi Securities Exchange. Bird in hand theory anchored the study. An explanatory research design was adopted where all the 62 firms listed in Nairobi Securities Exchange (NSE) participated in the study. Secondary data collected from the published financial statements for the years from 2018 to 2020 by use of a data collection sheet was analysed using descriptive statistics and regression analysis. The results indicated that dividend yield had a positive and significant relationship with the performance of the listed firms at NSE. The study recommended that the listed firms should strive to have a sizable amount of the profits accrued by the firm be paid as dividends and that the listed firms should strive to be consistent in their dividend payments.

Suggested Citation

  • KEMBOI, Noah & KINYARIRO, Dickson Kamau & GESAGE, Methuselah Bichage & MAINA, Justus Nderitu, 2023. "Relationship Between Dividend Yield And Financial Performance Of Listed Firms At The Nairobi Securities Exchange," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 27(1), pages 6-17, March.
    • Handle: RePEc:vls:finstu:v:27:y:2023:i:1:p:6-17
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    References listed on IDEAS

    as
    1. Adaoglu, Cahit, 2000. "Instability in the dividend policy of the Istanbul Stock Exchange (ISE) corporations: evidence from an emerging market," Emerging Markets Review, Elsevier, vol. 1(3), pages 252-270, November.
    2. Wycliffe Mukulu Musyoka & Evans Geoffrey Mogeni & David Musimbi Murunga & Pollyne Mbithe Mutunga, 2018. "Effect of Stock Market Development on Economic Growth: A Case of Nairobi Securities Exchange, Kenya," Noble International Journal of Economics and Financial Research, Noble Academic Publsiher, vol. 3(5), pages 59-70, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    earnings; bird in hand theory; dividend policy; investment decision;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
    • G40 - Financial Economics - - Behavioral Finance - - - General

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