A Study on the Dividend Practice of Private Banks in Ethiopia
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Date
2009-06
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Addis Ababa University
Abstract
The paper examines the trend and determinant factors of dividend
payment of the private banks in Ethiopia, where there is no stock market.
The study uses data of the six banks for the period from 1999/00 to
2007/08. The study examines the interrelationship between dividend of the
banks and some selected key determinants like earnings, debt to equity
ratio and liquidity
The findings provide as there is positive linear
relationship between dividend per share and earnings per share, dividend
per share and debt to equity ratio of the banks. Other determinants like
tax considerations, ownership structure, agency problem and legal
restrictions are also found to be important determinant factors on the
dividend decision of the banks
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Keywords
Dividend, Private banks, Ethiopia