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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Item 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, GetachewThe 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.Item DETERMINANTS OF TAX COMPLIANCE OF MICRO AND SMALL BUSINESS ENTERPRISE (MSE) CATEGORY “C” TAXPAYERS, THE CASE OF SOUTHWEST SHOA ZONE, ETHIOPI(WOLKITE UNIVERSITY, 2018-01) GETAHUN AYANSA BIRAEThis study sought to identify the determinant of tax compliance in Ethiopia, specifically focusing on Micro and Small business enterprises operating in South west shoa zone. The researcher outlined a detailed literature review and identified the variables for this research to be tax rate, tax knowledge, tax compliance cost; attitude of Micro and small enterprises and tax system. The research employed both descriptive and explanatory research design. A sample size of 325 were used from a population of 1726 micro and small business enterprises category “C” taxpayers in south west shoa zone. Data was collected using questionnaires and structured interview. Thecollected data was consequently analyzed using Statistical Package for Social Scientist softare (SPSS V.22) and the findings of the research presented using tables, various chart types ad graphs. The results showed that tax rate, tax knowledge, tax compliance cost, attitude of SME’s and tax system significant determine tax compliance of taxpayers. Tax rate, Tax system and compliance cost predominantly affect tax compliance. With regard to cost of tax compliance, the study revealed that Micro and Small businesses incur different costs such as salary of accountants, fees to tax consultants, cost of stationeries, etc. that contributed for their noncompliance and estimation of Micro and Small Enterprises tax is another problem related tax system. However, the taxpayers do feel and strongly agree that the taxation system in Ethiopia is in great need of improvement. The study then recommended that the current tax law should be amended to incorporate provisions that grant special tax incentives to MSEs in order to improve voluntary tax compliance by MSE taxpayers. The study also recommended that the ERCA should disseminate information on tax rate and tax system more frequently in order to improve the levels of tax knowhow for voluntary tax compliance.Item FACTORS AFFECTING THE EFFECTIVNESS OF SAVING & CREDIT COOPERATIVES IN GURAGHE ZONE(WOLKITE UNIVERSITY, 2019-06) GINBARU TEKLE, GINBARUhe main purpose of this study was to investigate factors affecting the effectiveness of saving and credit cooperative in Guraghe zone. The study followed simple random sampling research design. Using simple random sampling, 109 sample SACCOs were taken from the study area. Data used primary data collected from board chair person based on designed questionnaires and also data used the logistic regression model was used for the analysis. The major factors that affecting effectiveness of SACCOs are favorable for saving, fair policy and regulation, amount of saving to members, working time, and membership size which has a strong association and statistically significant. In addition the major factors that affect SACCOs effectiveness and statistically significant is level of Equib and Edir. Therefore the researcher recommends SACCOS should give high attention in attracting members to increase their source of fund by providing awareness about the benefit of joining SACCOS by using different social Medias, by creating training programs, through distribution of brochure to clients if fund is available should encourage members to take loan to increase dividend for idle funds, should charge compatible interest rate on loan to members to attract members, and also the government establishes cooperative bank then bank of cooperative to regulate SACCOs cooperative every activities. Finally Federal cooperatives agency should pay attention to decide for the government to establish cooperative bank of SACCOs as they help many people in providing loan as well as saving services and they are one of the financial service providers that highly contribute for effective financial services for the countryItem DETERMINANTS OF NON-PERFORMING LOANS: EVIDENCE FROM PRIVATE COMMERCIAL BANKS IN ETHIOPIA (IN CASE OF AIB, DB, BOA, NIB, CBO, WB, LIB AND UB)(WOLKITE UNIVERSITY, 2019-07) GEMECHU TUNUNU, GEMECHUThis study examined the bank-specific and macro-economic determinants of Non-performing loans (NPLs) of Ethiopian commercial banks. The study adopted a quantitative research approach. The study uses data collected from the National Bank of Ethiopia, Central Statistical Agency and financial statement of nine commercial banks. Data covers the period from 2007- 2016. Descriptive and multiple regression analysis employed to analyze the unbalanced panel data. For the purpose of this study seven variables have been taken, categorized under bank specific factor and macro-economic factor .Under bank specific factor there are five variables .These variables are; net interest margin, capital adequacy, return on asset, loan to deposit ratio and return on equity. And macro-economic factors are Gross domestic product and inflation rateItem Determining Factors of Liquidity of Private Commercial Banks in Ethiopia(WOLKITE UNIVERSITY, 2019-06) Abenezer TesfayeThis study intended to examine the determinants of Liquidity in Private Commercial Banks in Ethiopia. In view of that, this study determined the bankspecific and macro-economic factors affecting bank liquidity for Six Private commercial banks in Ethiopia, covering the period of 2000-2017 by usingbalanced fixed effect panel regression. The findings of the study showed thatcapital adequacy, and inflation had statistically significant and positive relationship with banks’ liquidity. Bank size had a negative and statistically significant impact on Private Commercial banks .Loan growth had positive and statistically insignificant impact on Private Commercial banks. GDP growth rate has statistically insignificant and positive influence on the liquidity of private commercial Banks. Inflation had positive and significant impact on banks liquidity.On the other hand, the results of the study profitability were quite surprising. The result is conflicting with researcher’s expectations and also a finance theory which emphasizes the negative correlation of liquidity and profitability. Moreover, the coefficient of profitability was not statistically significant, implying that its Influence is insignificant. This positive relation shows that, higher profitability leads to increase banks liquidity. Conclusion about the impact of Ethiopian bank’s profitability on liquidity remains ambiguous and additional investigation is required. The researcher recommended that to maintain adequate system for managing liquidity of private commercial banks in Ethiopia.Item 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 KINFEThe 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.Item Factors Affecting Internal Audit Effectiveness in Governmental Sectors: Case Study in Guraghe Zone(WOLKITE UNIVERSITY, 2019-06) Abidlemewella BedewiThe main purpose of this study was investigating factors affecting internal audit effectiveness in governmental sectors in guraghe zone, SNNPRS. As a result, the study used 13 randomly selected sectors (four out of eleven regional sectors with IA work process, one & the only federal sector and eight out of fifteen zonal sectors with IA work process) out of purposively selected 27 governmental sectors that have IA work process. The sectors were stratified into three strata (federal government, regional government and zonal government related sectors). Simple random sampling was applied on each stratum to get sectors that were used to form the sample size. Distributing two types of prepared questionnaire to 128 top management & IA, primary data was collected from 116 respondents (response rate 90.625%). Descriptive statistics & OLS multiple linear regression to measure IAE and to identify factors affecting IAE were applied respectively. Internal audit independence, management support, adequate and competent internal audit staff, sufficiency of budget, level of objectivity, approved IA charter, unrestricted information access and professionally competent team leader were hypothesized factors to be investigated and all of these factors were expected to have positive and significant impact on IAE. Out of these eight factors, internal audit independence, sufficiency of budget and unrestricted information access, were factors identified to have positive and significant contribution to IAE & internal audit independence was identified to be the most important deriver of IAE. But management support, level of objectivity, approved IA charter and professionally competent team leader were investigated to have insignificant positive contribution to IAE. Beta sign to adequate and competent internal audit staff showed that the variable has negative and insignificant contribution to IAE. Regression output of the analysis showed that 62.3% of the study is explained by the model and it showed that all of the variables collectively could play very important role to contribute for IAE.Item FACTORS AFFECTING COMMITTING OF ACCOUNTING FRAUD IN PUBLIC AND PRIVATE BANKS IN WOLKITE TOWN OF GURAGE ZONE, ETHIOPIA(Wolkite University, 2019-08) YALEW KIBRU SHIRGAA study entitled factors affecting committing of accounting fraud in public and private banksin Wolkite town of Gurage zone, Ethiopia was conducted with the aim of identifying the types of accounting frauds committed and identifying major motivating factors for employees responsible for committing accounting frauds. Data for this study were collected using asemi-structured questionnaire. Both descriptive and econometric methods of data analysis were used for analysing data. Multiple linear regression model as part of the econometric analysis was used to analyse and identify factors affecting committing of accounting fraud in bank. The result of descriptive analysis showed that employees in bank are forced to commit frauds because of the motivation, the opportunity they accessed and rationalization. The result of econometric analysis also revealed that variables namely adherence to accounting rules, internal control effectiveness management morality, information asymmetry, and suitability of the motivational rewarding system were found to significantly determine the commitment of accounting fraud in private and public banks in the study area. The study finally recommended that limiting employees’ access to only the assets, systems, and information necessary for them, keeping in the morality of management, providing different incentive and compensation mechanisms, strengthening the internal bank controlling systems, communicating the employees in a bank with uniform information, and improving awareness of the employees to obey for the accounting rules for minimizing the accounting fraud in private and public banksItem IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABLITY: EVIDENCE FROM SELECTED MANUFACTURING COMPANIES IN SNNPRS, ETHILOPA.(wolkite university, 2019-01) Abiyot Gossaye TekaWorking capital management is the administration of current assets and current liabilitiesand it is directly affects the liquidity and profitability of company. Hence, efficient workingcapital management involves excessive planning and controlling and it is very important toequalize between current assets and current liabilities to eradicate the risk of insolvency.The objective of this study is to examine the impact of working capital management onfirms’ profitability and review the statistical significance between components of working capital management. In light of this aim the thesis implement quantitative method of research approaches to test the study hypothesis. Hence, the study used survey of companies audited financial statements. The purposive sampling method was used. Consequently, the study selected a sample of 11 companies for the period of eight years(2010-2017). Data was analyzed on quantitative basis using descriptive and regression analysis (Pooled ordinary least square) method was used. It observe the components of working capital for instance accounts receivable management, inventory holding period, accounts payable period, and cash conversion cycle in relation to ROA. In addition the study observes current ratio, company size, company growth and debit ratio as control variables. The key results from the study are; a negative significant at 5 percent relationship between account receivable management and profitability. Cash conversioncycle have a negative and statically significant at 5 percent relation with profitability. Opposed to the research hypothesis, account payable period has a negative statically significant at 5 percent relation with profitability. The manufacturing company of SNNPRS ,Ethiopia managers can increase profitability of their firms by limiting the time gap between company’s expenditure for purchases of raw materials and the collection of sales of finished goods. In general the study recommended that firms should minimize working capital management components in order to maximize profitability.