A Study On The Dividend Practice Of Private Banks In Ethiopia

The paper examines the trend and determinant factors of dividendrnpayment of the private banks in Ethiopia, where there is no stock market.rnThe study uses data of the six banks for the period from 1999/00 torn2007/08. The study examines the interrelationship between dividend of thernbanks and some selected key determinants like earnings, debt to equityrnratio and liquidityrnThe findings provide as there is positive linearrnrelationship between dividend per share and earnings per share, dividendrnper share and debt to equity ratio of the banks. Other determinants likerntax considerations, ownership structure, agency problem and legalrnrestrictions are also found to be important determinant factors on therndividend decision of the banks

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