RELATIONSHIP BETWEEN SALES GROWTH, MARKET TO BOOK VALUE AND DIVIDEND PAYOUT. A STUDY OF LISTED COMPANIES IN KENYA
Abstract
This study analyzed the relationship that exists between dividend payout and the financial performance variables, sales growth and market to book value. The research study adopted a descriptive research design. To achieve these objective thirty financial statements of listed companies was analyzed. The research also advanced the work of previous scholars and academicians. Based on this research the results showed that there was a negative relationship between dividend payout and the financial performance variables of sales growth and market to book value. This study recommended that firm managers should plan on the proportion of profits that should be retained versus the portion that will be distributed as dividends to stockholders. Managers are also rated on financial performance hence the findings of this study would be of great benefit to them and would also act as a guide to setting reliable corporate dividend policies.
Key Words: Sales Growth, Market to Book Value, Divided Payout
CITATION: Chumari, T. M. (2019). The relationship between sales growth, Market to Book Value and dividend payout: A study of listed companies in Kenya. The Strategic Journal of Business & Change Management, 6 (4), 1377 – 1384.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1473
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