Department of Accounting and Finance

URI for this collectionhttps://rps.wku.edu.et/handle/123456789/46627

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ASSESSING THE EFFECT OF CORPORATE GOVERNANCE ON THE INDEPENDENCY OF INTERNAL AUDIT FUNCTION: A CASE STUDY ON ETHIOPIAN PRIVATE COMMERCIAL BANKS
(wolkite university, 2021-06-07) ABUBEKER SEFA
The concept of internal audit independence is an area of concern for all commercial banks, it will continue to be an important issue that must be addressed.. Therefore, the study has established how the independence of internal audit is affected by various corporate governance factors among commercial banks in Ethiopia. Data was collected using structured questionnaires distribute to all internal audit department managers, heads of audit and inspection division and risk and compliance officers/managers of the 16 private commercial banks in Ethiopia. Data collected was analyzed by descriptive statistics aided by SPSS version 20 data analysis tool. A regression model was used to analyze the relationship between internal audit independence and level of corporate governance factors within a test of significance of 95% confidence level. The study has revealed that there is positive linear relationship between independence of Internal audit function and the corporate governance factors; corporate governance setting (CGS), senior management support (SMS),effect of Remuneration committee(ERC),effect of Qualification and Experience of internal audit staff(EQEIAS)), Effectiveness of audit committee (EAC)) and Perception of Internal audit independence (POI) among private commercial banks in Ethiopia. The results of this study can inform bard of directors on the extent to which important factors factor are considered in the establishments of corporate governance they help the independency of internal audit.
ASSESSMENT OF FACTOR AFFECTING SAVING DEPOSIT MOBILIZATION IN CASE OF ABAY BANK WOLKITIE BRANCH
(wolkite university, 2023-06-05) ATALEL MULU
The main objective of this study is found out to the assessment of factors affecting saving deposit mobilization in case of abay bank in wolkitie branch. The relevant data for this study collected from both primary and secondary sources. To collect primary data self administered questionnaire used. Whereas, secondary data collected via organizational records and written materials about the organization. Census used to collect data from employees because of they were few in numbers. The collected data effectively processed, Analyzed and presented by using percentage and tabulating. This study had found that existence of competitors, market fluctuation, low deposit interest rate, high limitation on providing loan and expansion of informal saving are the main factors. The data for these factors was collected from ABAY bank. In addition the study found that the saving deposit increasing at increasing rate between expected and actual saving deposit of the bank, comparing to the previous five years saving mobilization The saving deposit mobilization has affected by internal as well as external factors. From the external factor the existence of competitor and market fluctuation, Low interest rate and high limitation on providing loan are found to be the factor that affects saving deposit mobilization.
ASSESSMENT OF FACTORS AFFECTING LOAN REPAYMENT PERFORMANCE IN OMO – BANK (IN THE CASE OF WOLKITE BRANCH)
(wolkite university, 2023-06-08) ABENEZER TEKA
Commercial banks have a significant role in the development of one’s country’s economic development by providing credit and also a saving service for those productive clients. Though there are many factors that can affect the efficiency of the institution like, loan management and processing system, cash management, and loan repayment performance. This study was conducted with the aim of analyzing the factors that influence Banks loan repayment performance, specifically in omo bank in Wolkite town using primary data collected through a self-administered questionnaire. This study intends to assess the factors affecting the loan repayment performance of the beneficiaries of omo bank. In order to achieve this objective, the study was adopted a mixed research approach. Primarily data were collected from 20 institution employees holding different positions with using a self-administered questionnaire. For the data analysis, descriptive statistics including percentages, median and standard deviation were used to assess or described the phenomena that influence repayment rates.
ASSESSMENT OF TAX AUDIT PRACTICE AND ITS EFFECTIVENESS IN ENHANCING TAX REVENUE THE CASE OF LARGE TAX PAYERS BRANCH OFFICE OF ETHIOPIAN REVENUE AND CUSTOMS ATHORITY
(wolkite university, 2018-06-08) MELAKU KINFE
The purpose of this study is to assess the tax audit practice and its effectiveness in enhancing tax revenue of large tax payers’ office. The study examines tax audit practice and its effectiveness with dimensions of experience and capable audit staff, tax payer’s record keeping, tax payer’s office information system, audit case selection and examination method, the type of audit used and frequency of tax audit influence audit effectiveness in LTO. In light of this objective the study adopted mixed research method of research approaches. Specifically, the study used survey of questionnaire analysis offices’ on tax auditors and team leader, and interview analysis on team leaders and process owners. Then tax auditors and team leaders were selected based on Census method, because, the target population studied is small. In large tax payer’s office there were 80 tax auditors supervised and lead by 10 team leaders managed by two process owners. Then the researcher distributed those questionnaires to the 90 tax auditors and team leaders, only 80 of them were returned. Consequently, Data was then analyzed on quantitative basis using inferential statistics (Anova and linear regression analysis) and descriptive statistics (frequency, percent, mean and standard deviation). Qualitatively interview was presented to process owners. The results of the study enable us to conclude that tax audit type, experience and capability of audit staff and audit case selection and examination method as a linear combination significantly influence tax audit effectiveness in the organization studied. However, tax payers record keeping, tax payers information system and frequency of tax audit were not significantly to undermine tax audit effectiveness. In the end, the study forwards the possible measures to be taken by the Ethiopian Revenue and Customs Authority to mitigate problems in tax audit operation. The authority should conduct further study to alleviate the problems which are related to tax audit.
Assessment of Tax Collection Problem (In Case Study of Wolkite Town)
(wolkite university, 2023-03-08) Abel Andualem
This study focused on problems related to tax collection in Wolkite Town. It is known that the existence of a state without tax is unthinkable because of government refunds from taxation. So studies of problems associated with tax collection and finding appropriate solutions may help to contend with development constraints successfully through a detailed investigation. Because of this, this study designed and looked at the problems related to tax collection in Wolkite Town. With the key objective of assessing problems related to tax collection. This may help the Town revenue and tax office to look at originated problems. To conduct this study both primary and secondary data will be collected. The primary data is collected by using questionnaires from taxpayers, employees of the revenue bureau, and personal interviews with the manager of the bureau. The secondary data was collected from the previous year’s reports of the bureau, from different books, and related published materials. To conduct this study questionnaires were distributed to 99 taxpayers and 15 questionnaires were distributed to employees of the revenue bureau. In addition to this, different opinions were collected from the manager of the office and the previous year’s report of the office.
ASSESSMENT OF WORKING CAPITAL MANAGEMENT PRACTICE IN FIKIR SPRING WATER
(wolkite university, 2023-03-07) AMANUEL SHUMYE
This study's primary objective was to assess the working capital management practice of Fiker Spring Water, a privately owned company it locate Agena near Wolkite town. This study was conducted by taking the whole target population as respondents (census method) For this study. primary data collection was done by the researcher. The student researcher gathered primary data sources through structured interviews with the finance manager and by distributing an open and closed-ended questionnaire to respondents. Primary data sources were analyzed and interpreted through descriptive research analysis using tables and percentages about working capital management practices in Fiker Spring Water. The researcher uses the descriptive method of data analysis. The finding of the study showed many strengths and weaknesses of the company (Fiker Spring Water). Finally, the finding of this paper showed that even if Fiker Spring Water selects many appealing cash control, inventory control, and receivable management techniques its overall working capital management practice in recent periods is weak and require further work. The student researcher recommends that organization should think of hiring qualified personnel for the position of financial management in their organizations.
BENEFITS AND CHALLENGES OF USING INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS): A STUDY ON ETHIOPIAN PUBLIC ENTERPRISES
(wolkite university, 2020-05-08) BEKELE JARSA NESHIER
International Financial Reporting Standards (IFRS) are set of Accounting Standards developed by International Accounting Standard Board (IASB) that is the global standards recognized for thepreparation of companies’ financial statements. This study examines benefits and challenge of implementation of IFRS in Ethiopian public enterprises which establish in accordance with financial reporting proclamation # 847/2014, the study also identifies the factors that facilitate implementation of IFRS in Ethiopian public enterprises. Primary data were collected through five Point Likert-scale questionnaires. The study used non-random sampling of judgmental technique to select 10 enterprises from 22 enterprises based on nearness of the company and time of establishment.SPSS used to analyze a data collected through questionnaire the questionnaire data were analyzed using descriptive statistics, correlations, parameter estimiat and Ordinal Logistic Regression analysis. The findings revealed that IFRSimproves effectiveness of financial reporting, provides greater reporting transparency,it reduce cost of capital, It provides better information for decision making, make confidence for lender,enables better risk management and provides greater creditability.The study also foud that IFRS Implementation have challenges. It is costly, IFRS increases the complexity of financial reporting, Lack of IFRS implementation guidance affects the implementation of IFRS and increases the risk for manipulation in interpretation of financial statements, IFRS increased volatility of earnings, Tax driven nature of previous standards is a challenge for IFRS implementation, lack of proper instructions from regulatory bodies and Problem with IT system. The study also revealed Management support, Institutional readiness, Educational level, and Enforcement capacity significantly affect the quality of IFRS implementation in Ethiopian public enterprises. The findings suggest that a rigorous IFRS capacity building program should be embarked by the government, allregulatory bodies, enterprises and training institutions in order to provide the needed manpower for IFRS implementation.
CORPORATE GOVERNANCE AND ITS IMPACT ON PERFORMANCE (SOCIAL AND FINANCIAL): EVIDENCE FROM MFIs IN ETHIOPIA
(wolkite university, 2021-06-05) SANI NISRANE MOHAMMED
The study was aimed to look at the effect of corporate governance attributes on the social and financial performance of in MFIs Ethiopia. Explanatory research design with quantitative research approach was employed to carry out the study. From 35 legally registered microfinance institutions at NBE and AEMFIs, 16MFIs were selected based on the availability of data to investigate the effect of corporate governance variables such as board size, board educational qualification, board experience in the financial sector, meeting frequency of the board, board audit committee size and CEO with dual responsibility on social (breath of outreach and depth of outreach) and financial performance of MFIs measured by Number of Active Borrowers, Gross Loan Portfolio and Return on Asset respectively. In addition to main explanatory variables, control variables MFIs Size were also included within the study variables. Both primary and secondary data were used in which primary data regarding board characteristics was collected through questionnaire and secondary data was obtained from MFIs, NBE and AEMFIs. Panel data covering six year from 2014-2019 was analyzed for sixteen microfinance institutions. The regression results revealed that board size, board educational qualification, meeting frequency and CEO with dual responsibility have positive relationship with financial performance of MFIs while board experience in the financial sector, board audit committee size and firm size has statistically negative relationship. Board educational qualification, meeting frequency, audit committee size and firm size have positive relationship with social (breath of outreach) while board size, board experience in the financial sector, and CEO with dual responsibility have negative relationship. Board size, Board educational qualification, audit committee size and firm size have positive relationship with social (depth of outreach) while board experience in the financial sector, meeting frequency and CEO with dual responsibility have negative relationship. Based on empirical result of the study, it is recommended that CEO with dual responsibility should be separate for better performance. Furthermore, in order to reduce the problem of management failures which put at risk the money obtained from the public and other sources, the governance mechanisms of MFIs have to be effective (i.e. creating and maintaining a business environment that motivates managers and entrepreneurs to maximize firm’s operational efficiency, returns on investment and or on equity and long term productivity).
CORPORATE GOVERNANCE AND ITS IMPACT ON PERFORMANCE (SOCIAL AND FINANCIAL): EVIDENCE FROM MFIs IN ETHIOPIA
(wolkite university, 2021-03-09) SANI NISRANE MOHAMMED
The study was aimed to look at the effect of corporate governance attributes on the social and financial performance of in MFIs Ethiopia. Explanatory research design with quantitative research approach was employed to carry out the study. From 35 legally registered microfinance institutions at NBE and AEMFIs, 16MFIs were selected based on the availability of data to investigate the effect of corporate governance variables such as board size, board educational qualification, board experience in the financial sector, meeting frequency of the board, board audit committee size and CEO with dual responsibility on social (breath of outreach and depth of outreach) and financial performance of MFIs measured by Number of Active Borrowers, Gross Loan Portfolio and Return on Asset respectively. In addition to main explanatory variables, control variables MFIs Size were also included within the study variables. Both primary and secondary data were used in which primary data regarding board characteristics was collected through questionnaire and secondary data was obtained from MFIs, NBE and AEMFIs. Panel data covering six year from 2014-2019 was analyzed for sixteen microfinance institutions. The regression results revealed that board size, board educational qualification, meeting frequency and CEO with dual responsibility have positive relationship with financial performance of MFIs while board experience in the financial sector, board audit committee size and firm size has statistically negative relationship. Board educational qualification, meeting frequency, audit committee size and firm size have positive relationship with social (breath of outreach) while board size, board experience in the financial sector, and CEO with dual responsibility have negative relationship. Board size, Board educational qualification, audit committee size and firm size have positive relationship with social (depth of outreach) while board experience in the financial sector, meeting frequency and CEO with dual responsibility have negative relationship. Based on empirical result of the study, it is recommended that CEO with dual responsibility should be separate for better performance. Furthermore, in order to reduce the problem of management failures which put at risk the money obtained from the public and other sources, the governance mechanisms of MFIs have to be effective (i.e. creating and maintaining a business environment that motivates managers and entrepreneurs to maximize firm’s operational efficiency, returns on investment and or on equity and long term productivity).
DETERMINANT OF CORPORATE DIVIDEND PAYOUT DECISION A STUDY ON INSURANCE COMPANIES IN ETHIOPIA.
(wolkite university, 2021-03-08) HinsermuMegerso
Dividend policy decision is essential and has a great influence on financial structure, flows of funds and corporate liquidity. Even if several studies have been done by different researchers it still remains unsolved. This research work tried to explore the determinants of corporate dividend payout in Ethiopian insurance companies on basis of data covers ten years (2012-2021) period. Key explanatory variables were identified and these variables are profitability, firm size, growth opportunity, leverage, liquidity, GDP and inflation. In order to achieve objective of the research quantitative research method and explanatory research approach and 10 years panel data from annual audited report of nine private insurance companies were employed. Fixed Random effect model used to identify the most significant variable because of hausman test result indicate the p-value was appropriate to use fixed random. The result of the study shows that profitability, growth opportunity, leverage, inflation and GDP have found to have statistically significant relation with the dividend payout. While the remaining variables found to have statistically significantbut rejected relation with the dividend payout in Ethiopian insurance industry. When designing dividend payout policy mangers of Ethiopian insurance companies need to consider the major factors in setting/revising their dividend payout policy as profitability creates more cash inflow potential, to be competent in the arena the company’s growth opportunity needs to be considered, as dividend is the only means of return from investment and government should provide an option for shareholders in the absence of secondary stock market. On the same token investor need to consider the significant factors profitability, leverage, growth opportunity, GDP and inflation in their investment decisions on Ethiopian insurance companies
DETERMINANT OF TAX AUDIT PRACTICE IN ETHIOPIAN MINISTORY OF REVENUE: (CASE STUDY OF NORTH WEST ADDIS ABEBA SMALL TAX PAYERS REVNUE OFFICE)
(Wolkite University, 2023-03-04) ABDIRFETA NEGASH
The purpose of this study is to investigate Determinant of Tax Audit Practice in Ethiopia Minatory of Revenue Case Study of North West Addis Ababa Tax Payers Revenue Office. The study aims to examine the statistical significance between Determinant and tax audit Practice. The study adopts mixed method approach in order to achieve the research objectives. In light of this objective the study adopted quantitative method of research approaches to test a series research hypothesis. Specifically, the study used survey of questionnaire analysis of revenues offices’ tax auditors. Researcher used Census method to select the survey respondents. Consequently Data was then analyzed on quantitative basis using Pearson’s correlation, multiple regression analysis and descriptive statistics quantitatively. Specifically, the study used survey of questionnaire analysis on tax auditors and tax audit process owners. The results showed that there is positive and statistically significant relationship between top management support, information system, audit quality and organizational independence positively, and statistically significant relationship with tax audit Practice. But audit attribute is negatively and statistically significant relationship with tax audit Practice, The study recommends that Information system is dominant influence on tax audit Practice so it should be support more to become appropriate, easy and simple use for auditors. Also audit quality and organizational independences are giving more attention that a great impact on tax audits.
Determinants of Access to Microfinance Institutions Credit Service: The Case of sodo woreda, Guraghe zone, southern nation’s nationalities, and Peo ple’s regional state, Ethiopia
(wolkite university, 2023-06-07) Endale Tekelmaryam
The provision of credit has increasingly been regarded as an important tool for raising the income of the rural population, mainly by mobilizing resources to more productive use. However, in Ethiopia, among other things, lack of finance is one of the fundamental problems impeding production, produc tivity and income of the rural households in general and food insecure households in particular. The Federal and Regional governments have been making different efforts to address the overwhelming problem of food insecurity by providing food security package based credit and other complementing services. Although credit facilities are available to rural households in the study area, in practice, many of the households have not made the use of the facility. Thus, this study has investigated the factors that determine the access of rural smallholder farmers to the available credit facilities in the woreda. The result of binary logistic regression shown that sex, family size, head’s occupation, dependency ratio, in terest to credit, collateral, saving culture and infrastructure had significant impact on access to micro finance institutions credit service in sodo woreda. In contrast, age, education, farm size, livestock own ership and distance had no significant impact on the access to microfinance institutions credit service in sodo woreda.The study recommended that new policies that encourage demand-driven financial services should be formulated. The Government should create market for the products of the farmers and provide proper training and skill development activities for the farmers on how to us the creditand improve their Agricultural production and productivity. In addition, the government should also encourage other fi nancial institutions such as private institutions and NGOs that provide financial services.
Determinants of Access to Microfinance Institutions Credit Service: The Case of sodo woreda, Guraghe zone, southern nation’s nationalities, and People’s regional state, Ethiopia
(wolkite university, 2023-03-09) Endale Tekelmaryam
The provision of credit has increasingly been regarded as an important tool for raising the income of the rural population, mainly by mobilizing resources to more productive use. However, in Ethiopia, among other things, lack of finance is one of the fundamental problems impeding production, productivity and income of the rural households in general and food insecure households in particular. The Federal and Regional governments have been making different efforts to address the overwhelming problem of food insecurity by providing food security package based credit and other complementing services. Although credit facilities are available to rural households in the study area, in practice, many of the households have not made the use of the facility. Thus, this study has investigated the factors that determine the a ccess of rural smallholder farmers to the available credit facilities in the woreda. The result of binary logistic regression shown that sex, family size, head’s occupation, dependency ratio, interest to credit, collateral, saving culture and infrastructure had significant impact on access to micro-finance institutions credit service in sodo woreda. In contrast, age, education, farm size, livestock own-ership and distance had no significant impact on the access to microfinance institutions credit service in sodo woreda. The study recommended that new policies that encourage demand-driven financial services should be formulated. The Government should create market for the products of the farmers and provide proper training and skill development activities for the farmers on how to us the credit and improve their Agricultural production and productivity. In addition, the government should also encourage other financial institutions such as private institutions and NGOs that provide financial services
DETERMINANTS OF BANKS’ INTERNAL AUDIT QUALITY: A STUDY ON SELECTED COMMERCIAL BANKS IN ETHIOPIA
(wolkite university, 2020-05-07) JEMAL AWOL
This study examines the determinants of internal audit quality in selected commercial banks in Ethiopia. The study used purposive sampling method and covered the head office internal auditors of selected Ethiopian commercial banks. Mixed approach method was adopted in the study. Data were collected by self-administered questionnaire to 130 internal audit department staffs of the commercial banks. These questionnaires were constructed in 5-point Likert scale, distributed to internal auditors of selected Ethiopian commercial banks. Multiple Regression (OLS) has been employed to regress the data obtained. The result of this study shows that top management support, promotion and reward, physical work environment and auditors’ performance were strong and has statistically significant effect on internal audit quality. As the regression results shows availability of budget, training and development autonomy to implement internal audit techniques have insignificance effect on internal audit quality. The study recommends that Ethiopian commercial banks must work to ensure the availability of the key factors to achieve the quality of internal audit function.
DETERMINANTS OF BUDGET CONTROL IN PUBLIC ORGANZATION A STUDY WITH REFERENCE TO SOUTHERN NATIONS, NATIONALITIES, AND PEOPLES’ REGIONAL STATE (SNNPRS
(wolkite university, 2018-03-07) Getachew Mamo
The main purpose of this study was to investigate the determinants of budget control in the Southern Nations, Nationalities, and Peoples’ Regional State public organizations. This investigation was focus on five purposely selected public organization that are expected to represent all other bureaus. From the total population, (watson 2001) formula was used to determine sample of respondents. The management team, the internal and external auditors, budget experts, finance officers, tax and planning experts of the selected public organization were the sources for the required data to the study through questionaires adminstered. The STATAS soft ware was used to analize the data using descriptive statistics, including mean, standared deviation and logistic regression used to analysis inferential output. For this study, eight independant variables were identified including budget planning process, management support, competent internal audit staff, organizational commitment, budget monitering and evaluation, information and communication, cost reduction and competency of human resource in budget department. The dependent variable is degree of budget control which was measured under Binary logistic regression. According to the logistic regression output, budget planning process, competent internal audit staff, organizational commitment and competency of human resource in budget department were contributed for the budget control in the public sector significantly and positively but budget monitoring and evaluation for the budget control was negatively and significantly related. The other variables organizational commitment were positively related with the budget control, but its contribution for the budget control were statistically insignificance at 5% level and management support also positively related with the budget control, but its contribution for the budget control were statistically insignificance at 5% level. All of these eight independent variables are making 50.93% of the contributions for budget control in the public organization. Then, the researcher recommend that public organizations should understand the contributions of these five variables collectively significant and their odd ratio were greater than one to infinity indicate the relationship between those predictors and the outcomes and add values for the budget control in the public sector offices.
DETERMINANTS OF CAPITAL STRUCTURE: EVIDENCE FROM MANUFACTURING FIRMS IN ETHIOPIA
(wolkite university, 2022-06-07) JIMMAWORK G/MESKEL
The overall objective of the study was to investigate determinant factors affecting the capital structure of manufacturing firms in Ethiopia. The study employed explanatory research design and quantitative research approach. Secondary data were collected from 81 manufacturing firms’ financial statement (2015 to 2020) to achieve the objective of the study. The study was targeted on manufacturing firms in Ethiopia. However, for the accessibility of data the author specifically focused on large tax paying manufacturing firms and simple random sampling technique was used to select sample of 81 large tax paying manufacturing firms among the total population of 102. Finally, after collecting the relevant data, descriptive statistics, correlation analysis and OLS model were used to analyze the data. The study found that profitability, firm size, firm growth, liquidity and volatility in foreign exchange are found very important in determining the variation in capital structure of manufacturing firms in Ethiopia during the study period under consideration. Specifically, from the firm specific factors; firm growth, asset tangibility, and firm size were found positively affecting the capital structure in the manufacturing industry during the study period while profitability and liquidity found negatively influencing capital structure. In other side among the macro economic variables, volatility in foreign exchange were found positively affecting the capital structure. The researcher recommends that it is better to manufacturing firms to increase debt capacity in proportion to tangible asset because the tangible asset is used as collateral and provides security to lender in occurrence of financial stress. Furthermore, the researcher recommends that it is advisable to take in to account the suggestions of pecking order theory and static trade of theory since these theories are more pertinent to the capital structure decision of Ethiopian manufacturing firms.
DETERMINANTS OF FINANCIAL REPORTING QUALITY IN CASE OF INSURANCE COMPANY IN THIOPIA
(wolkite university, 2024-05-08) SEYOUM YILMA
This study intends to assess the determinants of financial reporting quality in case of insurance company in Ethiopia over a period of 2014-2022. Consequently, the study used document review of insurances’ audited financial statements. The explanatory variables used in this study were Leverage (LE), Profitability (ROA), Liquidity (LQ), Auditor Change(AC), Firm Age (FA) and Firm Size(FS).In this study sixteen Insurance companies were selected from a total population of sixteen insurances companies to accomplish a study for the period of nine years (2014-2022) with the total of 144 observations. Moreover, The secondary data were analyzed using descriptive statistics, correlation analysis and panel data analysis and data from document reviews were interpreted quantitatively. The study used panel data and random regression model to analyze the Determinants of Financial Reporting quality of Ethiopian insurance companies. The study found that profitability ratio has positive and insignificant effect on financial reporting quality. While, auditor changes and firm ages had significant effect on financial reporting quality, leverage and liquidity were found to be insignificant effect on financial reporting quality of Ethiopian insurance companies
DETERMINANTS OF FINANCIAL REPORTING QUALITY ON ETHIOPIAN INSURANCE COMPANIES
(wolkite university, 2021-03-08) MULUKEN WELIKA NEGERI
This study intends to assess the determinants of financial reporting quality of Ethiopian insurances companies over a period of 2014-2019. Consequently, the study used document review of insurances’ audited financial statements. The explanatory variables used in this study were Board Size (BS), Leverage (LE), Profitability (ROA), Liquidity (LQ), Auditor Change(AC), Firm Age (FA) and Firm Size(FS). In this study sixteen Insurance companies were selected from a total population of insurances companies to accomplish a study for the period of six years (2014-2019) with the total of 96 observations. Moreover, for the dependent variable data were collected for seven years period, from (2013-2020). To test the hypotheses, the study adopted the quantitative research approach. The secondary data were analyzed using descriptive statistics, correlation matrix and linear regression analysis and data from document reviews were interpreted qualitatively. The study used panel data and random regression model to analyze the Determinants of Financial Reporting quality of Ethiopian insurance companies. The study found that profitability ratio has positive and significant effect on financial reporting quality. While, auditor changes, board size, leverage and liquidity were found to be insignificant effect on financial reporting quality of Ethiopian insurance companies. It is recommended that insurance companies should do to improve their liquidity management systems through broadening and diversifying of funding sources and shortening asset maturities that leads to a better quality of financial report.
DETERMINANTS OF INTERNAL AUDIT EFFECTIVENESS IN SELECTED GOVERNMENT UNIVERSITIES OF ETHIOPIA
(wolkite university, 2020-06-06) SEIFU SHIGAZE SHEMBIR
The increasing rate of financial irregularities, fraud, and mismanagement in Ethiopian Government Universities calls for concern. Despite all control measures put in place by the government, coordinating and regulating agencies, lack of transparency and accountability continues strongly. The objective of this study was to assess determinants of the effectiveness of internal audit in selected government universities of Ethiopia. The study employed explanatory survey research design along with both quantitative and qualitative approaches. Purposive sampling technique was used to select ten universities, 4 from the first generation; 3 from the second generation; and 3 from the third generation, from the total of 44 universities. Primary data have been used using self – administered questionnaires for 95 internal audit staffs, 45 middle level and 36 top level managements and semi – structured interview for 7 internal audit directorate directors. A total of 183 respondents were participated in the study. Secondary source of data also used by reviewing documents related to internal audit functions. Descriptive statistics and multiple linear regression model were used to analyze the quantitative data to examine the effect and relationship between IA effectiveness and six determinant factors of IA effectiveness. All the quantitative data was analyzed using a Statistical Package for Social Sciences (SPSS) version 20.The findings of the study revealed that among the four significant factors: independence of internal auditors, competency of internal auditors, internal audit work quality and organizational setting; independence of internal auditors was the most dominant determinant factor for the effectiveness of internal audit. However, 73.5% of the variations in the effectiveness of the internal audit of the universities were jointly accounted by the six variables including management support and perception of managements towards internal audit work value. Therefore, the effectiveness of internal audit in government universities is under question, unless these determinant factors are appropriately pledged. Thus, this study suggests that concerned bodies on government universities have to give attention on the development of internal auditors to be hired at the university level or should arrange ways so that the existing internal auditors in the universities to have continuous professional development.
DETERMINANTS OF INTERNAL AUDIT EFFECTIVENESS IN SELECTED GOVERNMENT UNIVERSITIES OF ETHIOPIA
(wolkite university, 2020-05-07) SEIFU SHIGAZE SHEMBIR
The increasing rate of financial irregularities, fraud, and mismanagement in Ethiopian Government Universities calls for concern. Despite all control measures put in place by the government, coordinating and regulating agencies, lack of transparency and accountability continues strongly. The objective of this study was to assess determinants of the effectiveness of internal audit in selected government universities of Ethiopia. The study employed explanatory survey research design along with both quantitative and qualitative approaches. Purposive sampling technique was used to select ten universities, 4 from the first generation; 3 from the second generation; and 3 from the third generation, from the total of 44 universities. Primary data have been used using self – administered questionnaires for 95 internal audit staffs, 45 middle level and 36 top level managements and semi – structured interview for 7 internal audit directorate directors. A total of 183 respondents were participated in the study. Secondary source of data also used by reviewing documents related to internal audit functions. Descriptive statistics and multiple linear regression model were used to analyze the quantitative data to examine the effect and relationship between IA effectiveness and six determinant factors of IA effectiveness. All the quantitative data was analyzed using a Statistical Package for Social Sciences (SPSS) version 20.The findings of the study revealed that among the four significant factors: independence of internal auditors, competency of internal auditors, internal audit work quality and organizational setting; independence of internal auditors was the most dominant determinant factor for the effectiveness of internal audit. However, 73.5% of the variations in the effectiveness of the internal audit of the universities were jointly accounted by the six variables including management support and perception of managements towards internal audit work value. Therefore, the effectiveness of internal audit in government universities is under question, unless these determinant factors are appropriately pledged. Thus, this study suggests that concerned bodies on government universities have to give attention on the development of internal auditors to be hired at the university level or should arrange ways so that the existing internal auditors in the universities to have continuous professional development.