Determinants of Dividend Payout Policy: In Case of Ethiopian Private Insurance Share Companies
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Date
2020-11
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A.A.U
Abstract
This study investigated the determinants of dividend payout policy of private insurance companies in Ethiopia. The data used in this study was sourced from the annual published report of selected insurance companies and from National bank of Ethiopia. The study used secondary and panel pooled data of seven years (2013-2019) for seven private insurance companies which have been paid dividend continuously for the past seven years. The study employed the OLS multiple regression to determine the effect of profitability, liquidity, firm size, corporate tax, company age, growth in revenue and tangibility of asset on dividend payout policy of insurance companies in Ethiopia. The finding from the study reviled that corporate tax and growth in revenue have negative significant effect on dividend payout policy of Ethiopian insurance industry while liquidity, firm size and tangibility of asset relate positively and profitability, corporate tax, company age and growth in revenue relate negatively with dividend payout policy. Based on the finding the researcher suggest thatwhile setting dividend payout policy management andboard of directors of insurance company must consider corporate tax and growth in revenue which have significant effect on dividend payout policy and also they should consider liquidity, firm size and tangibility of asset since they positively affect dividend payout policy. Investors must also consider liquidity, firm size and tangibility of asset before making investment decision.
Description
A Thesis Submitted to The Department of Accounting and Finance College of Business and Economics Presented in Partial Fulfillment of the Requirements for the Degree of Master of Science in Accounting and Finance
Keywords
Determinants, Insurance Companies, Dividend policy