Department of Accounting and Finance
URI for this collectionhttps://rps.wku.edu.et/handle/123456789/46627
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Item CORPORATE GOVERNANCE AND ITS IMPACT ON PERFORMANCE (SOCIAL AND FINANCIAL): EVIDENCE FROM MFIs IN ETHIOPIA(wolkite university, 2021-06-05) SANI NISRANE MOHAMMEDThe 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).Item CORPORATE GOVERNANCE AND ITS IMPACT ON PERFORMANCE (SOCIAL AND FINANCIAL): EVIDENCE FROM MFIs IN ETHIOPIA(wolkite university, 2021-03-09) SANI NISRANE MOHAMMEDThe 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).Item THE EFFECT OF BOARD DIRECTORS COMPOSITIONS PRACTICES ON FINNANCIAL INNOVATION ON ETHIOPIAN COMMERCIAL BANKS(wolkite university, 2021-04-07) MUSLIHA MUSTEFA UMEROne of the many challenges the business world is facing currently is installing sound and proper board directors composition in an organization. This might lead to economic failure if not managed and addressed properly and timely. This study aims at evaluating the effect of board director’s compositions practices on financial innovation on Ethiopian commercial banks using five years data from the year 2016 to 2020. The study assessed the effect of corporate governance variables on financial innovation of Ethiopian commercial banks as measured by natural logarithm of e- banking products and services. To achieve the objectives of the study the researcher used descriptive research design. The Corporate governance variables used in this study were females representing in the board, educational qualification of board of directors, board size, audit committee size and board meeting frequency. In the study firm size and bank age were used as control variables. Mixed research approach was employed to understand the effect of corporate governance on financial innovation on Ethiopian commercial banks. The study uses both primary and secondary source of data. Primary data was collected through interview of board secretaries of Ethiopian commercial banks used in this study. The study used panel data and pooled regression model to analyze the relationship between corporate governance mechanisms and financial innovation using a data set of 15 Ethiopian commercial banks. The findings showed that, females representing in the board and educational qualification of board directors have positive and significant effect on financial innovation of the banks. On the other hand, audit committee size and board directors meeting had negative and significant effect on financial innovation of the banks. Based on the findings of the study, it can be concluded that female’s directors in the board, educational qualification of board of directors, audit committee size and board directors meeting frequency influence financial innovation of Ethiopian commercial banks. Thus, the study recommends commercial banks should improve their board director’s educational qualification by providing the chance to upgrade their academic status and increases the size of female’s board directors to enhance financial innovation in the banks.