Please use this identifier to cite or link to this item: http://41.89.96.81:8080/xmlui/handle/123456789/3672
Title: The effect of corporate governance on dividend payout of manufacturing firms listed at the Nairobi Securities Exchange
Authors: Ikunda, Caroline,N.
Keywords: Corporate governance
Issue Date: Jun-2016
Publisher: Egerton University
Abstract: This study sought to examine the effect of corporate governance on dividend payout of manufacturing firms listed at the NSE. The objectives of the study were; to determine the effect of board size, board composition, CEO tenure and managerial equity holding on dividend payout of manufacturing firms listed at NSE and finally, to establish the effect of corporate governance on dividend payout of manufacturing firms listed at NSE. This study employed a correlational research design. The population of the study comprised all manufacturing finns which were consistently listed at the Nairobi Securities Exchange from 2008-2014. Data for this study was obtained from the annual published financial statements. Correlation and regression analysis were used to test the impact of the independent variables relating to corporate governance practices on the dependent variable (Dividend Payout). Independent t-test (one tailed) was used to determine the level of significance. The study found that board size, board composition, CEO tenure and management equity holding have a weak negative relationship with dividend payout. Fuither, the study found that board size has a statistical significant effect on dividend payout, while board composition, CEO tenure and managerial equity holding were found to have no statistical significant effect on the dividend payout of manufacturing firms listed at the NSF. for the period 2008 lo 2014. The empirical results from the multiple regression analysis indicated that the correlation coefficient(R) value was 0.692. This means that there is a strong positive relationship between corporate govemance and dividend payout(_r>-0.5). However, corporate govemance explains only 47.8% of the differences in dividend payout as shown by the coefficient of determination value (R1) of 0.478. Moreover, the significance value of 0263 implies that corporate governance cannot be used to adequately predict changes in dividend payout (P> 0.05).
URI: http://41.89.96.81:8080/xmlui/handle/123456789/3672
Appears in Collections:Faculty of Commerce

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