Internal Determinants Of Dividend Payout In Private Commercial Banks In Ethiopia

The purpose of the study is to investigate internal determinant factors of dividend payout inrnprivate commercial banks in Ethiopia. The study considers the impact of seven variables:rnprofitability, liquidity, leverage, growth, size and previous year’s dividend on dividend payoutrnby using panel data regression technique with a random effect model between years 2009 andrn2014. The findings of the study show that last year’s dividend, bank size and growth havernstatistically significant and positive relationship with banks’ dividend payout. On the otherrnhand, variables profitability and leverage have negative and statistically significantrnrelationship with dividend payout of private commercial banks in Ethiopia. However, thernrelationship of liquidity and dividend payout is positive but statistically insignificant. Thernfinding of this paper suggests for investors and bank officials to consider the bank’srnprofitability, leverage, last year’s dividend, size and revenue growth when they makerninvestment and dividend payout decisions.rnKey Words: dividend payout dividend policy profitability leverage growth size

Get Full Work

Report copyright infringement or plagiarism