Volume 12, Issue 8 · IJARST · ISSN 2319-1783 / 2320-1126

Determinants of Dividend Payout in Private Insurance Companies of Ethiopia

Determinants of Dividend Payout in Private Insurance Companies of Ethiopia is an open-access, peer-reviewed research paper by Yohanis Bayisa, published in Volume 12, Issue 8 of the International Journal of Advanced Research in Science and Technology (IJARST), a UGC-approved journal (Print ISSN 2319-1783, Online ISSN 2320-1126).

Author

Yohanis Bayisa

Abstract

This study aimed to identify determinants of dividend payout in Ethiopian private insurance companies. To achieve this objective, a quantitative research approach was used. Secondary data from ten insurance companies for eleven years period from 2010 to 2020 were used as panel data for analysis. The study analyzed both internal and macroeconomic variables; profitability, liquidity, leverage, firm size, firm age, and growth from internal factors and GDP and inflation from Macroeconomic variables. The random effect model was used to identify the effect of each explanatory variable on the dividend payout of Ethiopian private insurance companies. The result showed that profitability, liquidity, and firm size were found significant factors in dividend payout. Contrary to the predictions, the remaining variables-firm age, leverage, growth, GDP, and Inflation found to be insignificant. Thus, profitability, liquidity, and firm size have a positive and significant effect on dividend payout as predicted. Therefore, Ethiopian private insurance company managers should prioritize profitability, liquidity, and firm size when making dividend payout decisions.

DOI

https://doi.org/10.62226/ijarst20231131

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How do you cite this paper?

Yohanis Bayisa — “Determinants of Dividend Payout in Private Insurance Companies of Ethiopia.” International Journal of Advanced Research in Science and Technology (IJARST), Volume 12, Issue 8. DOI: https://doi.org/10.62226/ijarst20231131.

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