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