Corporate Earnings and Dividend Payout Ratio of Commercial Banks in Kenya
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 4
Abstract
This study sought to determine the effect of corporate earnings on dividend payout ratio of commercial banks listed at the Nairobi Stock Exchange (NSE). Secondary data was collected for a period of 10 years (January 2007 to December 2016) on an annual basis. The study employed a descriptive cross-sectional research design and a multiple linear regression model was used to analyze the relationship between the variables. The results of the study indicated that corporate earnings were significantly related to dividend payout ratio and that liquidity was a determinant of the payout ratio.The results further revealed that only profitability and liquidity produced positive and statistically significant highlight of the payout ratio. Bank size and debt ratio were found to be statistically insignificant determinants of dividend payout ratio of commercial banks. This study recommends that adequate measures should be put in place to improve and grow earnings of commercial banks.
Authors and Affiliations
Mercy Mutindimuendo, Wainainagithii . , Miriemwangi Phd, Murage Dominic
Keywords
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- EP ID EP411107
- DOI 10.9790/487X-2004086975.
- Views 82
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