BBSE Research projects (2015)

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Impact of ownership structure on dividend policy of listed banks in Kenya
(Strathmore University, 2018) Kamau, Joan Wanjiru
This study examines the effect of ownership structure of listed banks in Kenya on their dividend payout policy. The theoretical frmne7.uork of this study is based on dividend relevance theory dividend irrelevance theory and agency theory. The study explains ownership types such as-: government ownership, institutional ownership, family ownership, foreign ownership and managerial ownership in relation to the impact they have on the dividend policy of listed banks in Kenya. The relationship between dividend payout ratios will be tested against ownership structures with control variables like return on assets, price to book value, size of the firm, age of the firm and debt to equity ratio being used. Past studies in Kenya have not addressed the impact ownership structure has on dividend payout policy of listed banks in Kenya. Since most portfolio managers use bank stocks to get exposure to a market, thus bank stocks are in high demand, this provides incentive to focus on banking sector in Kenya. Findings of the study could be used by investors and owners of banks to better their understanding of dividend payout policies and investor decisions