D., Degfa (PHD)Geremew, Mahider2021-07-242023-11-042021-07-242023-11-042021-04http://etd.aau.edu.et/handle/123456789/27335Even though a lot of researches regarding dividend payout ratio have been conducted, there is no uniform answer to the question: what are the determinants of the companies‟ dividend payout ratio? Therefore, the researcher of this study decided to conduct a study regarding the determinants of dividend payout ratio of Ethiopian private banks using bank specific factors and macroeconomic variables. The main objective of this study was to identify the determinants of dividend payout ratio of Ethiopian private banks. To answer the objective of the study, explanatory and descriptive study used and the data covered the period from 2010-2019 for the sample of twelve Ethiopian private banks and used secondary data. Both bank specific and macroeconomic variables were analyzed by employing the balanced panel fixed effect regression model and the study used dividend payout ratio as a dependent variable and eight independent variables, namely; profit, leverage, liquidity, age, lagged dividend payout, GDP, inflation rate and exchange rate. The result of the study revealed that Profit, liquidity, age and foreign exchange have positive and statistically significant effect on dividend payout ratio significant, and, lagged dividend, inflation. Leverage and GDP have negative and statistically insignificant effect on dividend payout ratio, except for Leverage, which has statistically significant effectenPrivate Commercial BanksThesis