Browsing by Author "Ndede, F.W. S"

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    Effects of Dividend Policy on share price of firms listed at the Nairobi Securities Exchange, Kenya
    (IISTE, 2016) Kibet, T.W.; Jagongo, A. O.; Ndede, F.W. S
    Dividend policy is a widely researched topic in the field of corporate finance; however, it still remains a mystery as to whether dividend policy affects the share prices of quoted firms. During the period under review (2001- 2011), share prices of listed firms in the Nairobi Securities Exchange severely fluctuated making it difficult for investors to make informed investment decisions. The general objective of this study was to investigate the effect of dividend policy (cash and share dividend) on the stock prices, specifically, the study sought to establish the relationship between cash dividend and the share prices and to determine the relationship between share dividend and share prices of firms listed at the Nairobi Securities Exchange. The data set consisting of volume weighted average price as dependent variable and cash dividend per share and share dividend per share as independent variables were collected using data collection schedules for 55 companies sampled for the study. Secondary data was obtained from Nairobi Securities Exchange, Capital Market Authorities, Kenya Bureau of Statistics and from sampled companies for a period between the years 2001 and 2011. Ordinary Least Square diagnostic tests were run to ascertain the suitability of the model and the results showed that the model was suitable for estimation since it did not suffer from multicollinearity, heteroscedasticity and non-normality problems. Random Generalized Least Square regression analysis was carried out with the help of STATA at five percent level of significance. The results of the market indicated that there was a statistically significant positive relationship between cash dividend and share prices while there was statistically insignificantly negative relationship between share dividend and share prices. This implied that dividend policy affects the share price and that increase in cash dividend would result in increase in share price for companies listed at the Nairobi Securities Exchange, Conversely, an increase in share dividend would result in an insignificant decrease in share price for companies listed at the Exchange. The results of the study confirmed relevance of dividend policy on firm’s value. Based on the findings of the study, it was recommended that the management of Capital Markets Authority of Kenya should amend Cap 485A Laws of Kenya and other relevant laws and regulations and ensure enforcement of those laws among other measures to guarantee consistent practices by listed firms that lead to efficiency in the market for the benefit of the investors. Further, the management of listed firms should consider adoption of cash dividend policy more than share dividend as a strategy aimed at increasing the value of the firms due to its positive effect on the share price. If this is done consistently, the shareholders’ wealth would be maximized in the long run. It is thus recommended that further research could be conducted to establish whether macroeconomic variables affect equity price for firms listed at the Exchange. Keywords: Dividend policy, Share price, Securities Exchange, investment decisions, stock prices, cash dividend per share and share dividend per share,
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    Microfinance Interventions and Financial Empowerment of Women Entrepreneurs in Eldama Ravine, Kenya
    (AJEFM, 2026-01-06) Tallam, Beatrice Bundotich; Ndede, F.W. S
    Women’s financial empowerment (microcredit, microsavings, business development services, advisory/consultancy) is a vital pillar of sustainable and inclusive development, as women contribute significantly to household welfare, community advancement, and national productivity. Despite the growth of microfinance operations in Kenya, women entrepreneurs in Eldama Ravine Sub-County continue to face restricted access to credit, inadequate savings facilities, and limited advisory and business development services. This study examined the effect of microfinance interventions, specifically microcredit, microsavings, business development services (BDS), and advisory and consultancy (AC) services, on the financial empowerment of women entrepreneurs in Eldama Ravine Sub-County, Baringo County, Kenya. The study adopted a survey research design. Data were collected using a drop-and-pick method. Data analysis involved editing, coding, classification, and tabulation to prepare for statistical evaluation. Anchored on the Social Learning, Resource-Based, and Financial Systems theories, the study adopted an explanatory research design targeting 735 registered women-owned enterprises. A sample of 144 respondents was determined using Slovin’s formula and selected through stratified random sampling. Data were collected through pre-tested structured questionnaires and analysed using descriptive and inferential statistics. Diagnostic tests confirmed model adequacy (Durbin–Watson = 2.110; VIF within acceptable range). Results revealed that microcredit (p=0.044), microsavings (p=0.018), BDS (p=0.023), and AC services (p<0.001) had significant positive effects on women’s financial empowerment, jointly explaining 51.8% of the variation (R²=0.518). Advisory and consultancy services emerged as the strongest determinant of empowerment. The study concludes that microfinance interventions substantially enhance women’s financial autonomy. Business sustainability recommends the expansion of advisory services, enhanced savings mobilisation, and tailored business development programs to strengthen the economic position of rural women entrepreneurs. Overall, microfinance has evolved beyond credit provision to encompass holistic empowerment tools that enable women to build financial capability, overcome structural barriers, and achieve sustainable entrepreneurial success.