Tag Archives: Dividend payout

Size of the Firm and its Influence on Dividend Payout among Deposit Taking Saving and Credit Cooperative Societies (SACCOS) in Kenya (Published)

In the recent past Saving and Credit Cooperatives Societies (SACCOs) have gained popularity in Kenya due to high interest rates charged by commercial banks and this has made borrowers to shift their focus to SACCOs due to their fixed interest rates on loans. In regard to dividend payment SACCOs tends to pay high dividends in comparison to commercial banks, however the level of dividend payout keeps on fluctuating and thus shareholders are not aware of what they expect in the next financial year. This paper was set to explore the influence of size on firm on dividend payout. The study focused on deposit taking SACCOs since they play a major role of capital formation in Kenya. The study used descriptive and correlational research design. The target population was the 176 the deposit taking SACCOs in Kenya, out of which a sample of 108 respondents were randomly selected from each SACCO. Data was gathered using questionnaire and document analysis and analyzed using SPSS (23). The study findings revealed that the size of the firm had a negative insignificant influence on dividend payout among SACCOs. The study recommended SACCOs should not focus so much on expanding their operations to different locations, instead should focus on products development. The study recommended further analysis on the influence of cash reserve ratio on dividend payout.

 

Keywords: Dividend payout, SACCOS, deposit-taking, size of the firm

Size of the Firm and its Influence on Dividend Payout among Deposit Taking Saving and Credit Cooperative Societies (SACCOS) in Kenya (Published)

In the recent past Saving and Credit Cooperatives Societies (SACCOs) have gained popularity in Kenya due to high interest rates charged by commercial banks and this has made borrowers to shift their focus to SACCOs due to their fixed interest rates on loans. In regard to dividend payment SACCOs tends to pay high dividends in comparison to commercial banks, however the level of dividend payout keeps on fluctuating and thus shareholders are not aware of what they expect in the next financial year. This paper was set to explore the influence of size on firm on dividend payout. The study focused on deposit taking SACCOs since they play a major role of capital formation in Kenya. The study used descriptive and correlational research design. The target population was the 176 the deposit taking SACCOs in Kenya, out of which a sample of 108 respondents were randomly selected from each SACCO. Data was gathered using questionnaire and document analysis and analyzed using SPSS (23). The study findings revealed that the size of the firm had a negative insignificant influence on dividend payout among SACCOs. The study recommended SACCOs should not focus so much on expanding their operations to different locations, instead should focus on products development. The study recommended further analysis on the influence of cash reserve ratio on dividend payout.

Keywords: Dividend payout, SACCOS, deposit-taking, size of the firm

Dividend Tax Policy and Dividend Payout of Food and Beverages Firms in Nigeria (Published)

This study examined the effect of dividend tax policy on dividend payout in selected Nigerian food and beverages firms. The study employed a cross-sectional approach using both explanatory and exploratory design. Fifteen out of twenty one quoted food and beverages firms on the Nigeria stock exchange (NSE) as at December 2018 were randomly selected to constitute the study sample. Four hundred copies of structural questionnaire were distributed but only three hundred and twenty copies were correctly completed and useful for the analysis. The study revealed that dividend tax policy was significant on a dividend payout (f-statistic =27.52; p=0.000) with R-square =0.285. When the moderation variable effect (inflation) was considered, it was also found that dividend tax policy influenced dividend payout of the selected firms (F-statistic=15.89; p=0.000).The study further revealed that tax policy has significant effect on dividend payout in the selected firms. The study therefore recommended that management of firms should adopt more of stock dividend policy than cash concluded payout. 

Keywords: Dividend payout, Nigeria, Tax Policy, dividend, food and beverages

CEO Characteristics and Dividend Payout in Sub-Saharan Africa (Published)

The study examined the effect of CEO characteristics of tenure, nationality, gender and share ownership on the dividend paid by sixty-four companies located in Sub-Saharan Africa. It used data for five years (from 2012 to 2016) and covered three Sub-Saharan African countries. Twenty companies were selected from the sixty-five listed on the Kenyan Stock Exchange; twenty-three from the one hundred and seventy-two on the Nigerian Stock Exchange and twenty-one of the three hundred and seventy-six companies listed on Johannesburg Stock Exchange. Kruskal Wallis was applied to test four hypotheses. Two CEO characteristics – nationality and share ownership – were found to have significant relationship to dividend payout in the data available for the study.

Keywords: CEO gender, CEO nationality, CEO share ownership, CEO tenure, Dividend payout, sub-Saharan Africa

The Relationship between Dividend Payout Ratio and Outside Directors among Malaysian Public Lited Companies (Published)

The main objective of this study is to examine the relationships between outside directors and dividend payout ratio among the Malaysian public listed companies. The study examines the relationships between independent non-executive directors, CEO duality, the proportion of family members on board, director ownerships and dividend payout ratio. The findings of this study show that only direct ownership and firm size are found to be positive and significant in influencing the dividend payout ratio. The finding of this study will enhance the literature in the field of future studies and will also be worthwhile for the companies, investors as well as the policy makers to make important recommendations for the improvement in the corporate governance and to protect the interest of minority shareholders.

Keywords: CEO, Dividend payout, Ownership Structure, outside directors