INTERNAL DETERMINANTS OF DIVIDEND PAYOUT IN PRIVATE COMMERCIAL BANKS IN ETHIOPIA: EVIDENCE FROM SELECTED BANKS

Abstract

The factors influencing dividend distribution in Ethiopian private banks were examined in this study. Data from the National Bank of Ethiopia's reports and the banks' audit financial statements gathered throughout a ten-year period, from 2014 to 2023. The study used dividend payout as a dependent variable and profitability, liquidity, financial leverage, company structure, last year dividend, growth, investment prospects, business risk, and company size as independent factors. In order to conduct this study, the researcher used an explanatory and descriptive research design, which facilitates the identification and assessment of reason-based links between the many variables under investigation. Investors looking to forecast future dividend payments on their investments companies may need to consider the company's track record in relation to growth potential, profitability, liquidity, and dividend assets from prior years when making an informed choice about their investments because the dividend payout in the Ethiopian private banking industry is greatly impacted by these factors.