MSC in Accounting and Finance

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    DETERMINANTS OF DIVIDEND PAYOUT IN SELECTED PRIVATE COMMERCIAL BANKS IN ETHIOPIA
    (HAWASSA UNIVERSITY, 2024-03) YOHANNES HAILU
    Examining the internal determinants of dividend payout in selected private commercial banks in Ethiopia is an important topic of study for several reasons. Firstly, dividend payout is an essential component of corporate governance and provides valuable insights into a bank's financial health and management's efficiency. Understanding the factors that influence dividend payout decisions can help investors and stakeholders assess the bank's profitability, stability, and future prospects. Secondly, Ethiopia's banking sector is undergoing significant changes and reforms, such as the liberalization of the industry and the emergence of private commercial banks. Thus, analyzing the determinants of dividend payout in these banks can shed light on the specific challenges and opportunities faced by private banks in Ethiopia's unique economic context. Lastly, this study can contribute to the existing literature on dividend policy, expand the knowledge base on Ethiopian banking, and inform policymakers and regulators in developing effective regulations and policies for the banking sector. This study examines the determinants of dividend payout in selected private commercial banks in Ethiopia from 2012-2022. Using a quantitative research approach with correlational design, the study investigates the effects of profitability, liquidity, size, leverage, growth of gross earnings, and previous year's dividend payout on dividend distributions. Depend on findings the study has given suitable suggestions to determinants of dividend payout in selected private banks in Ethiopia.
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    DETERMINANTS OF PROFITABILITY IN ETHIOPIAN PRIVATE COMMERCIAL BANKS: EVIDENCE FROM 2017–2023
    (HAWASSA UNIVERSITY, 2025-05) TEMESGEN TESFAYE
    The major objective of this study was to examine both bank-specific factors, such as capital adequacy, liquidity, bank size, bank age, asset tangibility and leverage, as well as macroeconomic variables, including GDP growth and inflation, to determine their impact on profitability, as measured by Return on Assets (ROA). The research employed a quantitative approach, and used both descriptive and explanatory research designs to analyze panel data from five private commercial banks. The banks were Awash Bank, Abyssinia Bank, Dashen Bank, Nib Bank, and Zemen Bank and studied over the period from 2017 to 2023. Secondary data were obtained from the audited financial statements of the selected banks and macroeconomic reports from the National Bank of Ethiopia (NBE). The analysis employed EViews 9 software for regression analysis, revealing significant relationships between various factors and profitability, measured by Return on Assets (ROA).Various diagnostic tests, including multicollinearity, heteroscedasticity, normality, and autocorrelation, were conducted to ensure the reliability of the Ordinary Least Squares (OLS) regression model. The study finds indicate that bank size significantly increased ROA by effect size of 7.9% (β = 0.079, p = 0.007), while liquidity positively influenced profitability, with an increase of 11.9% (β = 0.119, p = 0.038). Additionally, leverage showed a positive impact, enhancing ROA by 2.2% (β = 0.022, p = 0.005). Asset tangibility was positively correlated with profitability, although not statistically significant (β = 1.638, p = 0.165). The study also found that GDP growth had a positive effect size on profitability (β = 1.967, p = 0.028), while inflation was inversely related to ROA, though not significantly affect financial performance. Accordingly, the study suggests that private banks need to work on their capital structure and asset management strategies. Managing liquidity to grow stability and profitability and managing debt to reduce financial risk are important. Also, regulators have the responsibility to generate an environment of low inflation and maintained stability in the economy that permits the banking sector to develop. This study adds to the literature on Ethiopian banking profitability and will be useful to policy makers, banks, and researchers in the future.