THE SIGNALING HYPOTHESIS: EVIDENCE FROM THE NAIROBI SECURITIES EXCHANGE

• Published in: Journal of business studies quarterly Vol. 3; no. 4; p. 105
• Main Authors: Waweru, Kennedy Munyua, Pokhariyal, Ganesh P, Mwaura, Muroki F
• Format: Journal Article
• Language: English
• Published: Antioch Journal of Business Studies Quarterly (JBSQ) 01.06.2012
• Subjects: Asymmetry; Book value; Cash flow; Control theory; Design; Dividend policy; Dividends; Hypotheses; Net present value; Profitability; Profits; Research design; Residuals; Stock exchanges; Stock prices; Studies; Time series; Nairobi Kenya; Kenya

This study investigates the signaling hypothesis by testing the displacement property of dividends. The study uses Ohlson (1995; 2001) model and follows Hand and Landsman (2005) approach. The study however varies the methodology by using pooled Time Series Cross Section data and Panel Corrected Stan...