The Effects Of Dividend Policy On Security Prices (share Prices) Case Study: Nairobi Stock Exchange

ABSTRACT 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 list…