An investigation into the effects of corporate dividend changes on earnings of firms participating at Nairobi securities exchange
Ondieki, A. M.
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Many previous studies have been conducted to provide theoretical as well as empirical insights to test whether corporate dividend changes predict future earnings of firms. Conflicting theories have emerged from the studies and thus causing confusion to investors who have been making critical investment decisions based on dividend declaration without considering profound empirical evidence. This research aims at establishing the information content of dividends (K'D), provide reconciliation on disagreements about ICD, contribute to the existing knowledge and form a basis for further research. 25 out of 58 firms listed at NSE and declared dividends between 2003 and 2007 forms a basis of the study. The period from 2008 is excluded from the study since it experienced economic downturn leading to substantial loss of value of shares.