ETD Collection

Permanent URI for this collectionhttps://wiredspace.wits.ac.za/handle/10539/104


Please note: Digitised content is made available at the best possible quality range, taking into consideration file size and the condition of the original item. These restrictions may sometimes affect the quality of the final published item. For queries regarding content of ETD collection please contact IR specialists by email : IR specialists or Tel : 011 717 4652 / 1954

Follow the link below for important information about Electronic Theses and Dissertations (ETD)

Library Guide about ETD

Browse

Filters

20151

Settings

Author: search.filters.author.Sylvester, Deodatus MkobaSubject: search.filters.subject.Dividends

Search Results

Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    The relations between dividend policy and stock returns in the Dar Es Salaam Stock Exchange, Tanzania
    (2015) Sylvester, Deodatus Mkoba
    Dividend policy establishes the distribution of a company’s profit whether they could pay out to the stockholders as dividends or retain the profit for re-investments in the company. There are several theories which explain the dividend behaviour, and the empirical studies suggest evidence for one over the other, however the belief concerning corporate dividend theories are different. There are two conflicting theories; those who believe in dividend relevance theory (Lintner & Gordon) and those who believe in dividend irrelevance theory (Miller & Modigliani). The key part of the study is related to the evaluation of which theory is suited for dividend policy of companies in Dar es Salaam Stock Exchange (DSE). So far numerous researchers have make an effort to solve the dividend puzzle. The main aim of this study was to establish whether there is a relationship between dividend policy and stock return of companies listed in Dar es Salaam Stock Exchange. In particular, the study focuses on three main aspects, namely; investigating the association between stock returns and dividend yield, stock price reaction to dividend announcements and identifying the factors influencing dividend policy decisions. The empirical findings confirmed that dividend yield has a strong impact on stock returns and it is statistically significant. The finding of this study supported the dividend relevance theory. The event study found that dividend announcements have an impact on share prices and the significance of the abnormal around event date confirms that the DSE market supports dividend relevance and signaling theory. Finally, the study concluded that debt ratio and age of the firms have a strong influence on the dividend policy on firms on the DSE.