Determinants Of Dividend Payout In Ethiopian Private Banks

The main purpose of the study was to examine the determinants of dividend payout in Ethiopianrnprivate banks. Five years data from 2009/10 to 2013/14 were collected from National bank ofrnEthiopia and banks audited financial statement. The collected data were analyzed using panelrndata regression technique. The study used dividend payout as a dependent variable and sevenrnindependent variables; they are profitability, liquidity, leverage, lagged dividend payout, growth,rnsize and risk. The finding indicated that among the seven independent variables; lagged dividendrnpayout, growth, size and risk have statistically significant impact on dividend payout; the restrnthree variables have no statistical significant impact on dividend payout. Therefore, laggedrndividend payout, growth, size and risk have a significant impact on dividend payout in Ethiopianrnprivate banks and board of directors of banks need to consider these variables while designingrntheir dividend payout policy; on the same token investors need to consider these variables inrntheir investment decisions when they want to make an investment in Ethiopian private banks.rnKey words: Dividend payout, private banks

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