College of Bussines and Economics

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ANALYSIS OF FACTORS AFFECTING DEPOSIT MOBILIZATION OF PRIVATE COMMERCIAL BANKS IN ETHIOPIA
(WOLKITE UNIVERSITY, 2019-06) MEKUANINT AYALEW FELEKE, MEKUANINT
The aim of this study is analyzing factors affecting deposits mobilization of private commercial banks in Ethiopia. In doing so, the study used Pearson correlation analysis, ordinary least squares (OLS) technique, Granger causality analysis and descriptive statistics using secondary data. The data are collected from national bank of Ethiopia (NBE) and sampled private commercial banks from the year 2002 up to 2017. The collected panel data also, regressed based on random effect model. Econometric view version 8 (Eview 8) and stata version 13 statistical software has been used to perform the analysis. The result of correlation analysis showed that, deposit interest rate and lending interest rate strongly correlated, while the inflation weakly correlated with bank deposit. As per the Granger causality analysis, the variables included in the estimation model have a unidirectional relationship in the long run. In addition to, the results of regression analysis showed that, deposit interest rate; the lending interest rate and return on asset were positively and significantly influence the bank deposit. However, inflation affects bank’s deposit negatively and significantly during the study period. Finally the study has recommended that, the private commercial banks should give due emphasis to deposit mobilization tasks and its determining factors by considering mobilizing deposit is a way to sustain in the banking industry.
Analysis of Value Addition in Hide and Skin Tannery Industry around Addis Ababa City, Ethiopia
(Wolkite University, 2020) Feyera Hailu Fekene
Feyera Hailu Fekene was born in Dire Enchine Woreda West Shoa of Oromiya Regional State inMarch 1981. I attended my primary education at Bola elementary school. I attended my secondary school education at Gudar senior secondary school in West Shoa Zone. After completion of high school education, I was joined Jimma University Ambo Collage of Agriculture department of General Agriculture and graduated in July 2001 with diploma in Agriculture. Soon after my graduation, I was employed at Nono Woreda Agricultural office and served as expert of input supplier coordination Unit for Seven years. Simultaneously I continued my distance and continuous education program at Rift Valley University and I was graduated 2014 BA Degree in Economics. Then after the author joined the School of Graduate Studies of Wolkite University in October 2018 to pursue my MSc degree in Economics in extension program
ASSESSEMENT OF NON PERFORMING LOAN ON THE PROFITABLITY OF MICRO FINANCE INSTITUTIONS (IN CASE OF METEMEMAN IN MICRO FINANCE)
(WOLKITE UNIVERSITY, 2019-06) Solomon Gezmu, Solomon
This study would be conduct on the title of assessment of non-performing loan in micro finance institutions in metemamen micro finance. The general objective of the study is to assess factors that affect the credit management in micro finance institution of metemamen in wolkite branch. The specific objectives of the study are to analyses the assessment of non-performing loan, to assess the technique, used by institution to manage non performing loan.to analysis the main reason a loan become non performing. To assess after credit provision. In this study both primary source of data was used and the researcher would be used open end and close questionnaires and structured interview to collect data from the employee, customers and management body of the institutions and purposive method was used to collect data from employee and management body of metemamen credit and micro finance institution. And also the researcher was used descriptive method of data analyzing. The general objective of the study is to investigate factors that affect the credit management in micro finance institution of metemamen in wolkite branch. Longitudinal design is employed for a data collection and analysis purpose. The sample would be use selected by purposive sampling selection techniques. There are some problems related with collections of credit given to borrowers and any other related with it. Thus microfinance institutions and government should take a corrective measurement in order to reduce credit risk management in metemamen micro finance institutions
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 INTEREST FREE BANKING SERVICE (CASE OF COMMERCIAL BANK OF ETHIOPIA WEST ADDIS ABABA DISTRICT)
(WOLKITE UNIVERSITY, 2018-06) BERHANU BEYENE NURGI
The main objective of this Study is to assess interest free banking service in commercial bank of Ethiopia- West Addis Ababa District. The study has employed descriptive research design and has used both primary and secondary data which have been collected through structured questionnaire and semi structured interview. A total of 398 sample respondents were taken through judgment & Convenience sampling for Employees & Customers respectively. The data was analyzed using descriptive statistics of mean, frequency, percentage, and standard deviation using Statistical Package for Social Science version 16 software. Based on the analysis of the study, the result shows that there is performance lagging of Interest free Banking financing products, lack of well trained & experienced employees with Interest free Banking in the branches, lack of awareness of customer about Interest free Banking products, inadequate marketing and promotion, unavailability of Interest free Banking financing products in all ofCommercial Bank of Ethiopia branches, and Interest free Banking as ameans of resource mobilization Strategy in Commercial Bank of Ethiopia. The study concluded that, Commercial Bank of Ethiopia has the capacity to provide the other interest free banking products & Service to its customers provided that there is commitment and support from all stakeholders of the bank including National Bank of Ethiopia. Based on the results of the findings, the study recommended that Interest free Banking should be given the necessary attention and support from all stakeholders, the bank has to be ready and committed in all aspect to deliver Interest free Banking products, aggressive promotion and marketing campaign about Interest free Banking products should be made, The Bank has to increase the accessibility of Interest free Banking products through increasing Interest Free Banking Window at each service providing Branch.
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, BEKELE
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.
CAUSE AND CONSEQUENCES OF YOUTH UNEMPLOYMENT; THE CASE OF WOLKITE TOWN, CENTERAL ETHIOPIA
(WOLKITE UNIVERSITY, 2023-11) Petros Niga
unemployment in Gurage Zone Wolkite Town. To answer the study objective, data were collected by a structured questionnaire from 269 respondents’ selected using simple random sampling technique and analyzed using binary logistic regression and the collected data were analyzed by statistical software packages such as STATA and Microsoft Excel. Thus, depending on the study the main cause of youth unemployment in the town are gender, age, education year, work experience, social network density, exposure to any social mass media, occupation, job opportunities and technological improvement those are significant variables and The consequences of youth unemployment in the town are alcoholism and prostitution, high crime rate, lack of peace and security, lack of self-respect, dependency, decreases in consumption and increasing poverty. Therefor the current status of youth unemployment in Wolkite town is high and it show more percepts of youths live in the town was unemployed due to different factors and it indicates there is unemployment problem in the Wolkite Town. Because of the seriousness of the problem measures like giving opportunity to self-employed activities, expanding private institutions to create job opportunities, establishing non-governmental and governmental institution should be taken to reduce unemployment in the town
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.
CROP DIVERSIFICATION AND ITS EFFECT ON YIELD AND FARMERS RESILIENCE: EMPIRICAL EVIDENCE FROM ABESHGIE DISTRICT, IN ETHIOPIA
(WOLKITE UNIVERSITY, 2023-11) BERHANU BEKELE, BERHANU
Crop diversification, which is growing more than one crop in a plot, is one of a workable climate wise agriculture approach that boosts crop yield, which in turn helps to enhance farming system resilience for the smallholder farmers. This thesis aims to identify factors affecting the extent of crop diversification in rural farmers in Ethiopia taking Abeshgie district as a case study. It also quantified the effect crop diversification on yield and farmers resilience. Primary data was gathered using structured survey questionnaire carried out by well-trained enumerators and supervisors. Using two stage sampling design a total sample of 303 farmers were selected. Linear regression and moment based flexible models were used to analyze the data. The result suggests that, crop diversification is 0.568, which shows moderate level of crop diversification. Crop diversification extent is positively and significantly affected by credit use, access to agricultural training, mass media use, total land farmers hold, distance from the market, experience of climate change in previous years, and age of the farmers. Crop diversification increased agricultural yields by 19% and significantly cuts down on downside risk exposure and variation by 18% and 3% respectively. Since crop diversification has a significant positive effect on crop yields as well as reducing downside risks, farmers should improve and participate in their crop diversification activities. The government and other concerned body should have to provide credit service and give agricultural training to farmers in order to improve crop diversification levels and assure sustained agricultural developments.
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, Getachew
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 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