Effect of Age Diversity on Dividend Policy in Kenya

In the modern corporations owners embrace mechanisms like age diversity to mitigate against managers failures to act in their interests. The purpose of this study is to examine how age affects dividend policy among Kenyan firms listed on the Nairobi Securities Exchange. The study was guided by agency, signaling, resource dependency and power circulation theories. The research design used was explanatory where all firms listed on the NSE were examined. Document analysis was used to collect secondary data from annual reports of firms. Data was analyzed using descriptive statistics such as the mean, median, and standard deviation and multiple regression analysis was done to examine the effects between age diversity and dividend policy in annual reports. The study was expected to contribute new knowledge on the relationship between board diversity and dividend policy as moderated by chief executive officer power. The results of the study revealed that age diversity did not influence dividend policy. The correlation results showed that age diversity (β = .005, p = .634). The study recommends that policy makers need to ensure development of regulations to enhance board diversity among firms since board diversity brings about overwhelming benefits to corporate owners by minimizing agency problems related to free cash flows hence enhance payout to shareholder and reduce risk of misallocation of excess resources by firm managers. The study also recommends further studies to be carried out on the relationship between board diversity and dividend policy on privately owned, SME’s, both listed and unlisted firms using similar study variables and a Longer period for the same study be considered to determine whether optimal results would be achieved. Keywords: Age Diversity, Dividend, Policy, Resource dependency, powe

Influence of Professional Expertise on Dividend Policy among Listed Firms in Nairobi Securities Exchange in Kenya

Management of corporations has been faced by challenges emerging from internal managers not being able to effectively offer stewardship. The organizations owners therefore have to improvise means of ensuring that their interests are protected. In modern corporation’s owners embrace mechanisms like board diversity to mitigate against managers failures to act in their interests. The purpose of this study was to examine the influence o professional expertise on Dividend Policy among listed firms in Nairobi Securities Exchange. In the recent past, most corporations in developing economies experience unstable dividend payment hence the need to determine whether professional expertise can remedy dividend payment situation prevailing. The study examined how professional expertise can influence dividend policy in companies listed on the NSE. The study was guided by agency, signaling, resource dependency and power circulation theories. The study used the explanatory research design. Document analysis was used to collect secondary data from annual reports of firms. Data was analyzed using descriptive statistics such as the mean, median, and standard deviation and fixed effect multiple regression analysis was done to examine the effects between professional expertise and dividend policy in annual reports of firms. The study was also expected to contribute new knowledge on the relationship between professional expertise and dividend policy. The regression results showed that professional expertise (β = .226, p = .490) exhibit a strong direct relationship with dividend policy. The study recommends that policy makers to ensure development of regulations to enhance professional expertise among firms since professional expertise brings about overwhelming benefits to corporate owners by minimizing agency problems related to free cash flows hence enhance payout to shareholder and reduce risk of misallocation of excess resources by firm managers. The study also recommends further studies to be carried out on the relationship between professional expertise and dividend policy on privately owned, SME’s, both listed and unlisted firms using similar study variables and a longer period for the same study to determine whether optimal results would be achieved. Keywords: Professional Expertise, Dividend, Policy, Resource dependency, securities exchang

Influence of Gender Diversity on Dividend Policy in Kenya

Management of corporations has been faced by challenges emerging from internal managers not being able to effectively offer stewardship. The organizations owners therefore have to improvise means of ensuring that their interests are protected. The purpose of this study is to gender and age influence dividend policy among Kenyan firms listed on the Nairobi Securities Exchange. In the recent past, most corporations in developing economies experience unstable dividend payment hence the need to determine whether board diversity can remedy the dividend payment situation prevailing. The study was guided by agency, signaling, resource dependency and power circulation theories. The research design used was explanatory where all firms listed on the NSE were examined. Document analysis was used to collect secondary data from annual reports of firms. Data was analyzed using descriptive statistics such as the mean, median, and standard deviation and multiple regression analysis was done to examine the effects between gender diversity and dividend policy in annual reports. The study was expected to assist in defining the role of gender diversity on dividend policy in emerging economies as well as determining whether gender diversity would act as a remedy to dividend policy puzzle among corporations. The results of the study revealed that gender diversity had influence on dividend policy of firms. The correlation results showed that gender diversity (r=.254, p= .000) had positive relationship with dividend policy. The results also show that gender diversity was the most important factor that influences dividend policy decisions. The study recommends that policy makers need to ensure development of regulations to enhance gender diversity among firms since gender diversity brings about overwhelming benefits to corporate owners by minimizing agency problems related to free cash flows hence enhance payout to shareholder and reduce risk of misallocation of excess resources by firm managers. The study also recommends further studies to be carried out on the relationship between board diversity and dividend policy on privately owned, SME’s, both listed and unlisted firms using similar study variables and a Longer period for the same study be considered to determine whether optimal results would be achieved. Keywords: Stewardship, Gender Diversity, Dividend, Policy, Resource dependency, policy puzzl