期刊名称：European Journal of Business and Social Sciences
印刷版ISSN：2235-767X
出版年度：2016
卷号：5
期号：2
页码：160-167
出版社：European Society of Business and Social Sciences
摘要：Many reasons exist why companies pay or fail to paydividends. Yet figuring out why companies pay dividendsand investors pay attention to dividend is the “dividendpuzzle”. The general objective of this study was to assess effects ofprofitability on dividend payout by commercial and services firmslisted in the Nairobi Securities Exchange (NSE) in Kenya. This studywas based on four theories which are dividend relevance theory,dividend irrelevance theory, free cash flows hypothesis and signalingtheory. Descriptive research design was applied in this research study.The target population for this study was all the 10 commercial andservices firms listed in the NSE as at 31st December 2015. Data forthese companies for 10 years (2005 – 2014) was used in the study.Both primary and secondary data was applied in this study. Data wascollected from the audited financial statements of the commercial andservices firms, NSE and the using a questionnaire survey to the firmsand also using secondary information from Capital Markets Authority.The study applied descriptive statistics and panel data analysis model.The study used panel data analysis and applied the fixed effects model.To do the analysis, the researcher applied Stata analysis software. Thestatistics that were derived from the descriptive, correlation and paneldata analysis were presented using tables and figures. Profitabilitywas an insignificant factor in determining dividend payout. The studyrecommended that though profitability may not hurt the ability of thefirm to pay dividends in the short term, continued poor performancewill definitely affect payout negatively.
关键词：Profitability; Dividends; Commercial and service firms
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