Title: Determinants of Dividends Levels by Co-operative Societies. A Study of Savings and Credit Co-operative Societies in Embu District
Abstract: In theory, the objectives of a dividend policy is to maximize shareholder's return so that the value of the investment is maximized. Shareholder's return consist of two components namely dividends and capital gains. Dividend policy has a direct influence on these two components of return (Pandey 2006). It is clear that firms give dividends to
their shareholders but differ in the levels of dividends given. It has also been noted that
SACCOs do give dividends to their members. However the levels of dividends given
differ. This research project provided an insight into the factors that determine levels of
dividends given by co-operative societies. The paper focused on how SACCOs distribute
dividends to their members. It's important to note that retained earnings are a source of
finance in any given organization. It is also worth remembering that shareholders require
return from their investments. Due to this, a need to find the factors that determine levels
of dividends given was a major driving force in this research. In analyzing the dividend
decision of SACCOs, this research project incorporated such parameters as earnings per
share, dividends per share, after tax profits, retained earnings among others with the aim
of establishing a consistency of their dividend decisions. Further, the paper recognized
that management should come up with a policy that balances between need for future
development of the firm and at the same time maximize shareholders wealth. This then
implies that dividend decisions should not be taken in isolation from other decisions of
the firm.
Publication Year: 2012
Publication Date: 2012-06-21
Language: en
Type: dissertation
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