| dc.description.abstract | Despite the potential benefit listed firms stand to accrue from paying dividends, including
improvement in stock prices and increasing investor demand raising the stock value, an
evaluation of dividend payouts by listed construction and allied companies at the Nairobi
Security Exchange over a 10-year period reveals dismal payout trends, in comparison with other
5
listed companies. This brings to question; what factors determine dividend payout among listed
construction companies. While existing research in the Kenya academia have looked into the
factors that influence dividend payments, none have concentrated on construction firms
registered on the Nairobi Securities Exchange, warranting the present study. The goal of this
investigation was thus to look at the factors that influence dividend payout among construction
organizations quoted on Nairobi Security Exchange. The study specifically sought to determine
the influence of the profit level, leverage, liquidity and firm size regarding the distribution of
dividends among constructing and related businesses quoted on the stock exchange at Nairobi
Security Exchange. The study used a descriptive design and was based on signaling theory,
pecking order theory, and the bird in the hand theory. A census was undertaken of all five
construction and related enterprises that are listed on the Nairobi Securities Exchange. A
secondary data collecting schedule was used to obtain secondary data. The investigation used
panel data for a 10-year period from 2011 to 2020. The study performed both descriptive
analysis including means and standard deviations and inferential analysis including Pearson
correlation and simple linear regression models. Results indicate that profitability (β = .417, p =
.029<.05), leverage (β = .523, p = .043<.05), liquidity (β = .431, p = .035<.05) and firm size (β =
.661, p = .019<.05) significantly influence dividend payout among construction and allied
companies listed at Nairobi Security Exchange. The investigation thus concludes that dividend
payout for constructing and allied firms quoted at Nairobi Security Exchange is significantly
determined by the profit level, liquidity, leverage and firm size do not. According to the report,
building and related firms listed on the Nairobi Securities Exchange must try to raise their
earnings in place to enable dividends payment arrangements; ensure that they have the capacity
to fulfill both anticipated and unanticipated cash demands; and work towards growth for
operational efficiency. | en_US |
