Abstract: The study sought to establish the effect of dividend policy on financial performance of selected tea factories in Kericho Highland Region. Specifically, the study was meant to determine the different types of divided policies including cash, bond, interim and stock dividends adopted by tea factories in Kericho Highland Region, investigate whether or not dividends policy increases financial performance in selected tea factories in the Highlands region, find out the challenges faced by the tea factories while declaring dividends in their factories, and propose possible remedies in curbing the challenges facing tea factories while declaring dividends to shareholders. The study adopted a survey design which targeted the managers, supervisors, quality assurance personnel, and accountants. The research data was collected using questionnaires.The analysis was performed using data derived from the financial statements of listed selected factories from on KTDA during the most recent period. The regression analysis was meant to establish the form of relationship between the independent and dependent variables. The results show positive relationships between dividend policy and performance of selected tea factories. Surprisingly, study reveals that bigger firms on KTDA perform less with respect to return on assets. The results also reveal negative associations between return on assets and dividend payout ratio and return on investment. The results of the study generally support previous empirical.
Keywords: Effect, Dividendedpolicy, Performance.
Title: EFFECT OF DIVIDEND POLICY ON FINANCIAL PERFORMANCE OF SELECTED TEA FACTORIES IN KERICHO HIGHLANDS REGION
Author: KIRUI CHEMUTAI JACKLINE, DR KEPHA OMBUI
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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