Department of Accounting and Finance

URI for this collectionhttps://rps.wku.edu.et/handle/123456789/45801

Department of Accounting and Finance

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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, 2021-12) 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 Ethiopian ,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, 2023-05) 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 thaexistence 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, 2023-05) 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
(2018-06) 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 WORKING CAPITAL MANAGEMENT PRACTICE IN FIKIR SPRING WATER
(WOLKITE UNIVERSITY, 2023-05-15) AMANUEL SHUMYE
This study's primary objective was to assess the working capital management practice of FikerSpring Water, a privately owned company it locate Agena near Wolkite town. This study wasconducted 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 Waterselects 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, 2020-06) 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, 2021-07) 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 Assetrespectively. 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, RISK MANAGEMENT, AND BANK PERFORMANCE: EVIDENCE FROM COMMERCIAL BANKS OF ETHIOPIA
(WOLKITE UNIVERSITY, 2021-07) SOSINA SHEWASEMA
This study intended to examine the effect of corporate governance and risk management on bank performance using 10 years data from the year 2010 to 2019 which total populations consists of 17 banks operating in Ethiopia and using purposive sampling techniques select a sample of 13 Ethiopian commercial banks. The dependent variableROA and ROE were used as the bank performance indicators. Besides the independent variable corporate governance incorporated board size, board gender diversity, audit committee size and frequency of board meeting. In addition the risk management proxies were credit risk, liquidity risk and operational risk. The Explanatory research design was employed. The study used secondary source of data collected from NBE. The study used panel data with random and fixed effect regression model analysis for ROA and ROE respectively by using Eviews 9, 2021 software in drawing conclusion about the study. The finding shows that board size and board gender diversity had insignificant relation with ROA and ROE. But the frequency of board meeting was negatively influence the bank performance. While, the audit committee size was negative significant effect on the ROE: but insignificance effect on ROA. The risk management proxies liquidity risk andoperational risk negatively affect the bank performance. But the credit riskshow insignificant relation with bank performance. Furthermore, the results of effect of corporate governance and risk management on the bank performance together shows that board sizeand frequency of board meeting were positively affect the bank performances. Whereas audit committee size, liquidity risk and operational risk were negatively associated with bank performance but, the board size and credit risk failed to show a significant relation with bank performance. Finally the researcher recommended that, based on the significant effect of the corporate governance mechanism and risk management factors on the performance of the bank, the Ethiopian commercial banks should construct a corporate structure technically and as per the directives and also managing the banks risk effectively in order to better attainment of the objectives of the bank and to encourage their performances.
DETERMINANT OF EFFECTIVE TAX ADMINISTRATION SYSTEM IN GURAGA ZONE
(Wolkite University, 2022-05) TARIKU TEWAJU
The best tax policy in the world is worth little if it cannot be implemented effectively. tax administration is the one that ensures high taxpayer’s compliance level. Nevertheless, measuring the effectiveness of the tax administration by the size of the tax collected is unsophisticated judgment. Therefore considering the tax payers equality treated are gap rather a much stronger criterion for the effectiveness of tax administration. Ethiopian revenue costume authority apply unusual estimating methods for hard -to -tax group’s viz. presumptive taxation to ascertain the tax liability of category ‘C’ taxpayers due to the corresponding administrative burden of auditing of such taxpayers. This study has attempted to identify the determinants that affect tax administration in Gurage zone selected werdas and city’s administration. Wire collected foremen Primary data collected from both revenue office employees and category ‘C’ taxpayers. By Proportionate Simple random sampling technique used and Descriptive and inferential statistics used to analyze the data. The study found that revenue office’s decisions have perpetuating phenomena in developing tax administration effectiveness among disfavored taxpayers, which was used as an indirect approach to measure the effectiveness of tax administration in this study., lack of tax education (tax awareness) ,lack of quality service delivery, lack of legal enforcement and attitude of tax payer towards tax the consequent of taxpayers, which showed the existence of the strong relationship between tax administration effectiveness and tax fairness and equity, tax law enforcement and attitude of taxpayer. The other cases studies, which showed the existence of this study tax awareness, and quality service delivery, are negatively in significant relation or has no relationship with the effective tax administration. Finally, the study recommends the revenue office to have fair treatment, active taxpayer’s education, secure high-quality service to citizens, enforce tax law and the taxpayer attitude toward tax, by strengthening professional level with training or advanced education, and ITC to improve tax collection.
THE DETERMINANT OF OPERATIONAL AND FINANCIAL SELF SUFFICIENCY AN EMPIRICAL EVIDENCE OF ETHIOPIA MICROFINANCE INSTITUTIONS
(WOLKITE UNIVERSITY, 2024-05) MAHDER MARKOS
Operational and financial self-sufficiency are tools to measure the self-sufficiency of MFI in Ethiopia. The main objective of this study was to identify the determinant of operational and financial self-sufficiency in Ethiopia. In order to achieve the research objectives, data was collected from a sample of nineteen MFI in Ethiopia over the period from 2013 to 2022. MFI internal and external factors of operational and financial variables were analyzed by using ordinary least square(OLS) multiple linear regression analysis in the balanced panel fixed effect regression model. The findings of the study help to MFI in their policy. The study also discovered that, number of active borrower, female borrower and age of MFI have positive and significant impact on operational self-sufficiency and debt to equity ratio and cost per borrower have negative and significant effect on operational self-sufficiency. Similarly the size of MFI, deposit mobilization and age of MFI have positive and significant effect on financial self-sufficiency and operational expense ratio has negative and significant effect on financial self-sufficiency however, Labor cost to total asset ratio and Average loan size per average borrower haves no statistically significant effect on the operational self-sufficiency and Cost per borrower, Labor cost to total asset ratio and inflation have not statically significant effect on financial self-sufficiency of MFI. Thus, the study suggests that MFI age and operational expense ratio have high impact on the MFI sustainability to compete with the other MFI therefore as possible reduce operational expense in the market.
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, 2023-09) 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, 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 theirAgricultural production and productivity. In addition, the government should also encourage other fi nancial institutions such as private institutions and NGOs that provide financial servi
DETERMINANTS OF BANKS’ INTERNAL AUDIT QUALITY: A STUDY ON SELECTED COMMERCIAL BANKS IN ETHIOPIA
(Wolkite University, 2020-06) 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-pointLikert 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 BANKS’ LIQUIDITY ON SELECTED COMMERCIAL BANKS IN ETHIOPIA
(WOLKITE UNIVERSITY, 2024-05) GEREMEW TSEGAYE ADELA
In banking sector, liquidity has one of the major concerns for both public and privatecommercial banks. Therefore, achieving the maximum level of liquidity is considered as the ultimate goal of most CBs. The main objective of this study was to examine determinants of banks’ liquidity on selected commercial banks in Ethiopia. The study adopted descriptive andexplanatory research design with quantitative approach. The study used non - probability sampling method – purposive to select the CBE and five private banks with at least twenty five years of establishment. Data source was secondary balanced panel data of the CBE and the five private commercial banks in the period of 2011 to 2022 which was obtained from NBE. Descriptive statistics, Pearson correlation coefficient and multiple linear regression model were employed to analyze the quantitative data using E – view 9. The findings of the study revealed that ROA, GDP, INF, and RR have significant and positive effect on liquidity of both public and private CBs, whereas BS, LG, and NPL have significant and negative effect, however, AQ has no significant effect. In this regard, 74.16% of the variations in the liquidity of the banks were jointly accounted by the eight variables at 5% level of precision. Therefore, those significant determinant factors are crucial to maintain the optimal level of liquidity of the banks. Therefore, it is recommended that commercial banks in Ethiopia are better not only be concerned about internal structures, policies and procedures, but also on both the internal environment and the macroeconomic environment together along with the industry factors while developing their strategies to efficiently manage their liquidity position.
DETERMINANTS OF BUDGET CONTROL IN PUBLIC ORGANZATION A STUDY WITH REFERENCE TO SOUTHERN NATIONS, NATIONALITIES, AND PEOPLES’ REGIONAL STATE (SNNPRS)
(WOLKITE UNIVERSITY, 2018-04) 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 questionnaires adminstered. The STATAS software was used to analyze the data using descriptive statistics, including mean, standard 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 BUDGET EFFECTIVINESS IN GURAGUE ZONE OFFICE OF FINANCEAND ECONOMIC DEVELOPMENT
(WOLKITE UNIVERSITY, 2024-04) TIBEBU FREW
Mung bean (Vigna radiata L.), is a recently introduced grain legume crop with high potential uses and export demand. However poor crop management practices, including improper NPSB fertilization rate and absence of improved varieties contributed to low productivity in the study area. Hence a field experiment was conducted in Cheha district, Gurage Zone to evaluate the effect of blended NPSB fertilizer rates on the yield and yield components of mung bean varieties. The experiment was laid out in a randomized complete block design with three replications. There were 16 treatment combinations, comprising two mung bean varieties (NVL-1 and Rasa) and eight blended NPSB fertilizer rates (0, 25, 50, 75,100, 125, 150 and 175 kg ha-1). The results showed that the highest values for most growth parameters and yield components were obtained with the application of 175 kg ha-1 NPSB. Results from the main effect of NPSB fertilizer rates indicated that the highest values for plant height (75.83), total number of branches (8.43), total number of nodules (22.91 and 22.6), number of effective nodules (13.41and 13.01) hundred seed weight (35.5g) and above ground dry biomass (5606.3 kg ha-1) were obtained. The interaction between variety and NPSB rate significantly influenced several growth and yield traits. The combination of Rasa variety with 175 kg ha-1 NPSB resulted in the highest days to 50% flowering (55.66 days),days to 90%physiological maturity (88.33 days), number of pod per plant (31), number of seed per pod(13.91), grain yield (1403.33 kg ha-1) and harvest index (24.97%).The partial budget analysis indicated that the combination of rasa variety with 175 kg ha1 NPSB gave the highest net benefit (48,928 Birr ha-1) with 1113.2% marginal rate of return. Therefore, the use of 175 kg ha-1 NPSB fertilizer with Rasa variety are recommended for optimal mung bean yield and economic benefit in the study area and similar agro ecology. These findings provide valuable insights for farmers and researchers to enhance mung bean production and address yield limitations in Ethiopia. However, since the result is only on one season and one location, further research is recommended to be carried out across more seasons and locations.
DETERMINANTS OF CAPITAL STRUCTURE: EVIDENCE FROM MANUFACTURING FIRMS IN ETHIOPIA
(WOLKITE UNIVERSITY, 2022-11) JIMMAWORK G/MESKEL
he 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 firm
DETERMINANTS OF COMMERCIAL BANKS DEPOSIT GROWTH IN ETHIOPIA
(Wolkite University, 2022-05) YIDNEKACHEW DULA
The general objective of this study is to examine factor affecting commercial banks deposit growth in Ethiopia. In order to achieve this objective descriptive and econometric analyses were performed. The target population was thirteen Banks in commercial activities, out of twenty-two commercial bank selected with 13 years back in the industry and registered by NBE under operation in Ethiopia and selected purposive sampling technique for the study. The panel data set for the study used secondary source consisted of annual data spanning from2009 to 2021 gathered from the national bank of Ethiopia. the dependent variable used to this study is deposit growth; explanatory variable used in this study were number of bank branch, loan to deposit ratio, deposit interest rate, awareness creation, age of company, exchange rate, profitability of the bank, and inflation rate. Different diagnostic tests were conducted to check the appropriateness of the model. Fixed effect model has been applied to find out of the results of explanatory variable. According to the final result achieved by applying panel data techniques, number of bank branches, exchange rate, and awareness creation had positively and statistically significant influence on commercial bank deposit growth; whereas, age of the bank and loan to deposit ratio are negative and statistically significant influence on commercial bank deposit growth. Whereas inflation rate had negative and insignificant influence on commercial bank deposit growth. And whereas deposit interest rate and profitability of the bank has positively and statistical insignificant. Finally, The study suggest that Ethiopian commercial banks specifically private owned banks have to open more branch in order to more accessible to the society, as the same times to increase their deposit and competition with the public banks. The Ethiopian people have exchange rate to change the currency commercial banks it creates more awareness of the people and also the Ethiopian commercial banks have to work on creating of awareness about banking services by recruit sales persons or promotion, who have an experience in marketing in order to advertise the products and services of the commercial bank through door-to-door activities.
DETERMINANTS OF DOMESTIC PRIVATE INVESTMENT DECISION IN WOLKITE TOWN
(WOLKITE UNIVERSITY, 2022-05) TEKALGNE DEGFA
This research paper aims to investigate the determinants of domestic private investment decision in the wolkite town. To address these objectives, the researcher used descriptive statistics, and explanatory research design was employed and 63 respondents were selected for the study. The researcher adopted censes sampling technique. The data were collected through primary source (qualitative data approach) collected from investors. Descriptive statics results were reported using tables, figures, charts, frequency, percentage, standard deviation, mean and econometric results were analyzed by using in multiple linear regression models by using SPSS 16 software package. The main finding of this study indicates that Source and access of Finance, Administrative challenges, level of education Political stability, Bureaucratic red tap, Infrastructural factors, Marketing factors, the econometric results also show that four variables have a statistically significant and positive correlation for domestic private investment, and administrative challenge have a statistically significant and negative correlation, and infrastructural factor and level of education is statistically insignificant variable in this study. The study concludes that domestic private investor in the study area were affected by the above identified factors. The researcher recommended for all concerned bodies, to pay more attention attracting foreign investors to invest in wolkite town, solve these problems access to finance, bureaucratic red tap, market related factor and political stability risk
DETERMINANTS OF EFFECTIVE BUDGET UTILIZATION THE CASE OF GURAGE ZONE FINANCE
(2023-05) Mintesnot Tamiru
The purpose of this study is to determine factors affecting budget utilization in gurage zone. To accomplish this objectives Descriptive research type were adopted. The study employed both qualitative and quantitative approach. From 16 woredas, 9 woreda selected 4 town administrations by random sample, city administration finance office and zone finance office are selected. The study used the response from 259 employees directly related to budget preparation, implementation and controlling .primary data were collected through questionnaire. The researcher used questionnaire to collect data for the research. The questionnaire contained open and closed ended questions and covered areas of budget utilization to come up with good raw data for the research. All collected information was analyzed by using both descriptive, multiple linear regression models and ANOVA testing. Data obtained from respondents were entered into STATA12 for analysis. For this study, six independent variables were identified including, fund diverting, and management support, inflation rate, government policy, and staff capacity and auditing. Therefore based on output of STATA12 the following variables fund diverting, staff capacity, management support, auditing, and inflation rate affects budget utilization significantly. The remaining five variables, fund diverting, management support, inflation rate, staff capacity and auditing are insignificant at p>0.05. Then, the researcher recommended that gurage zone public organizations should understand the contributions of these five variables to poor budget utilization in the public sector offices.
DETERMINANTS OF FINANCIAL INCLUSION IN GURAGE ZONE
(WOLKITE UNIVERSITY, 2021-06) HANA ABEBE
The main objective of this study is to investigate the determinants of financial inclusion in Gurage zone of Ethiopia. The research design for this study is explanatory with inferential study with collected primary data. Subsequent review of previous works a thorough review of previous empirical studies, a research questionnaire was also developed by the researcher is developed as a means of data collection. Necessary data for this study has been collected from a total of 422 respondent of Gurage zone .Available data analysis was analyzed using Binary Logistic Regression and the finding implies that residence, financial literacy, awareness, accessibility, availability, employment status, interest rate, and gender have significant influence on financial inclusion. On the basis of this study finding the study has also crucial recommendation. It is enhanced to corporate with other responsible bodies have to develop comfortable financial inclusion of the society