Studies from other countries in both developing and developed countries economies have
shown that there exists a relationship between the dividend policy that firms adopt and
share prices. In Kenya, most of the firms listed in the stock exchange pay dividends
semi annually . There is no legal requirements for the firms to adopt a specific dividend
policy schedule ,however dividend distribution do face legal restriction for instance
,Dividends should not be paid out of capital unless liquidating
This research attempts to determine the impact of dividend policy on share prices for
listed companies at the NSE.Companies listed at the NSE were examined for a period of
four years (2004-2007) .The empirical estimation was based on regression analysis of the
relationship between stock prices and dividend policy . The dividend policy measures
which include ( dividend yield and payout ratio) have significant impact on the share
From the study it was found out that there exist a strong relationship between the share
price and the dividend announcement because of the of the information signaling. This
study gives a generalized view in the relationship between dividends and share price.
Dividend policy has an effect on the share prices of the firms quoted in the NSE thus;
companies (firms) should pay dividends to maintain high share prices.
VICTOR, N (2021). The Effects Of Dividend Policy On Security Prices (Share Prices) Case Study: Nairobi Stock Exchange. Afribary. Retrieved from https://afribary.com/works/the-effects-of-dividend-policy-on-security-prices-share-prices-case-study-nairobi-stock-exchange
VICTOR, NYAKUNDIA. "The Effects Of Dividend Policy On Security Prices (Share Prices) Case Study: Nairobi Stock Exchange" Afribary. Afribary, 11 Jun. 2021, https://afribary.com/works/the-effects-of-dividend-policy-on-security-prices-share-prices-case-study-nairobi-stock-exchange. Accessed 19 Sep. 2021.
VICTOR, NYAKUNDIA. . "The Effects Of Dividend Policy On Security Prices (Share Prices) Case Study: Nairobi Stock Exchange". Afribary, Afribary, 11 Jun. 2021. Web. 19 Sep. 2021. < https://afribary.com/works/the-effects-of-dividend-policy-on-security-prices-share-prices-case-study-nairobi-stock-exchange >.
VICTOR, NYAKUNDIA. . "The Effects Of Dividend Policy On Security Prices (Share Prices) Case Study: Nairobi Stock Exchange" Afribary (2021). Accessed September 19, 2021. https://afribary.com/works/the-effects-of-dividend-policy-on-security-prices-share-prices-case-study-nairobi-stock-exchange