Meshesha Demie (PhD)Kifle Workneh2026-03-032026-03-032025-09https://etd.aau.edu.et/handle/123456789/7757This research project was intended to assess the determinants of dividend payout ratio in private commercial banks of Ethiopia. The study considers the impact of seven variables; which are profitability, liquidity, bank growth, previous year dividend, industry growth, inflation and GDP on dividend payout using panel data regression technique with a random effect model between the years 2005 and 2024. The study used data of ten private commercial banks that operate in Ethiopia. The empirical results of the study revealed that liquidity, previous year dividend and GDP have positively affected the dividend payout. On the other hand, firm growth, profitability, industry growth and inflation have negatively affected the dividend payout. Furthermore, the findings of the study revealed that previous year dividend, profit and bank growth have statistically significant impact on banks’ dividend payout. On the basis of the findings of the study, it is recommended that bank managers, bank directors and board of directors need to consider the factors that have an impact on the dividend payout policy in their decisions. Moreover, the academic circle can use this research as reference in their effort of analyzing the determinants of dividend payout ratio in the banking industry and also make decision in their investmenten-USPrivate banksDividendDividend payout ratioPanel dataRandom effect regressionThesis