College of Bussines and Economics

URI for this communityhttps://rps.wku.edu.et/handle/123456789/45798

College of Bussines and Economics

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Start date: 2025End date: 2025

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    THE EFFECT OF CAPITAL STRUCTURE ON FIRM PROFITABILITY (The case of Ethiopian commercial banks)
    (wolkite university, 2025-04-08) MELAKU MULU
    This study was aimed to investigate the effect of capital structure on firms‘ profitability with special emphasis on Ethiopian commercial banks Firms using panel data of nine consecutive years (2014 E.C-2022 E.C). The secondary data sources (audited financial statements) have been collected from the randomly selected nine Ethiopian commercial banks firms in Ethiopia. Linear regression model has been employed to analyze the relationship between firms‘ profitability and capital structure. The study employed EView8 software and panel data methodologies, particularly the Random Effect model for regression analysis. The researcher tested the CLRM assumptions error of zero mean, normality, heteroskedasticity, autocorrelation, and multicollinearity—on the data prior to the regression analysis. The study used two dependent variables ROA and ROE; three independent variables such as debt to asset ratio, debt to equity ratio and interest coverage ratio, two control variables size and tangibility and macroeconomic factor inflation. The regression result showed that variables DTAR, IC, TAN, FIRM SIZE and INF have positive and statistically significant effect on ROA at 1%, 1%, 5%, 5% and 1% significant level respectively. Whereas; DTER have negative and statistically significant effect on ROA at 1% significant level. In addition to all independent variables DTAR, IC, FIRM SIZE, TAN and INF have positive and statistically significant effect on ROE have at 1%, 1%, 5%, 1% and 5% significant level respectively. The research concluded that capital structure has a significant effect on the profitability of Ethiopian commercial banks in Ethiopia. Finally the recommendations have been forwarded for commercial banks, management, regulatory body, policy makers and future study on the subject.Key Words: Capital structure, profitability, commercial banks in Ethiopia.
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    Management Practices for Enhancing Operational Efficiency: A Comparative Analysis on Selected Bottled Water in Gurage zone.
    (WOLKITE UNIVERSITY, 2025-08) Abrham Getahun
    The Ethiopian bottled water industry, particularly in Gurage Zone, has experience rapid expansion, yet inefficiencies in management hinder optimal operational performance. This study examines the impact of human resource management (HRM) supply chain management (SCM), and customer relationship management (CRM) on operational efficiency in selected bottled water manufacturing companies Eden and Fikr. Using a comparative analysis approach the study employs descriptive statistics, regression analysis and ANOVA tests to access how management practices influence productivity, cost reduction and overall performance. Findings indicate that SCM has the strongest correlation with operational efficiency, followed by CRM in Eden and HRM playing a minimal role in both companies. The study highlights the importance of optimized supply chain networks, improved workforce management and effective customer interactions it driving efficiency. It concludes with recommendations for strategic managerial improvements to enhance competitiveness and performance in Ethiopia’s bottled water sector.
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    EFFECTS OF CAPACITY BULDING PRACTICE ON EMPLOYEE PERFORMANCE: THE CASE OF HIGHER EDUCATION INSTITUTIONS IN CENTERAL ETHIOPIA REGIONAL STATE
    (wolkite universty, 2025-09) DESTA SHKUR
    Employee performance relates to how well workers can conduct their required job duties. The main objective of this study was to examine the effect of capacity building practice on employee performance. In order to achieve the research objectives, data was collected from a sample of 364 employees in selected university of central Ethiopia regional state. The effects of capacity building practice on employee performance were analyzed by using multiple linear regression analysis models. The study discovered that, performance improvement program Professional Development Programs and Education status have significant and positive effect on the employee performance. Especially performance improvement program has highly significant effect on the employee performance. Thus, the study indicates that that performance improvement program of the respondents has high effect on the employee performance. Evaluating performance is an easy way to identify the need for additional training and mentoring to improve the institution workforce.
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    THE EFFECT OF TALENT MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE OF PRIVATE COMMERCIAL BANKS IN WOLKITE TOWN, ETHIOPIA
    (wolkite universty, 2025-09) SELAM TILAHUN
    The effects of poor talent management practices in banks are multifaceted, leading to decreased productivity, high turnover rates, poor customer service, challenges in attracting talent, and reduced organizational agility. Addressing these issues through effective talent management strategies is crucial for enhancing organizational performance and ensuring long-term success in the competitive banking industry. Therefore, this study aimed at to investigate the effect of talent management practices on organizational performance in private banks of Wolkite Town, Central Ethiopia Regional State. The research design was both descriptive and explanatory in nature and the quantitative method supported by qualitative approach. Census sampling technique was utilized. The target population consisted of employees and managers. Descriptive statistics, correlation analysis and multiple linear regression analysis were employed to analyze the quantitative data. Talent management practices such as talent planning, talent engagement, talent auditing, talent retention, and talent development were expected to have positive effect on the overall organizational performance in the study area. The qualitative data was analyzed using thematic approach and used for supplement to the results of the quantitative data analysis. The findings of the study unraveled that talent management practices as well as organizational performance were at moderate statuses in the private CBs. Besides, there was positive, strong, and significant correlation between talent management practices such as talent planning, talent engagement, talent auditing, talent retention and organizational performance. Moreover, the regression analyses result reveals 72.5% of the variation in the organizational performance of the private CBs in Wolkite town attributed to the effect of the these practices in combination. Of which, talent retention practice has the greatest effect on Organizational performance. Therefore, this study recommended that while talent retention is critical, it is essential to maintain a balanced approach. The CBs better to continue to strengthen and refine their talent planning, engagement, auditing, and development initiatives to ensure a comprehensive and robust talent management framework.
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    EFFECT OF PERCEIVED ORGANIZATIONAL JUSTICE ON EMPLOYEES ORGANIZATIONAL CITIZENSHIP BEHAVIOR: THE CASE OF STAFFS OF COMMERCIAL BANKS IN GURAGHE ZONE, ETHIOPIA
    (wolkite universty, 2025-08) TARIKU KIBRU FITA
    Multifaceted problems directly and indirectly hinder employee organizational citizenship behaviors (OCB) in the Ethiopian banking industry, further exacerbating the sector's challenges. The purpose of this study was to investigate the effect of perceived organizational justice and demographic factors on organizational citizenship behavior. The research utilized both descriptive and explanatory research designs. Also, both quantitative and qualitative approaches were used in this study. The population under study was employees of commercial banks of Guraghe Zone. Both primary and secondary data sources were used in this study. The required data were collected using semi structured questionnaires from a total of 186 respondents in Guraghe zone. The study employed descriptive statistics, correlation analysis, and econometrics model method of analysis. The study revealed that procedural justice was generally viewed positively (mean= 4.025), though employees felt that managers could improve in addressing staff issues before making decisions. Distributive justice also received positive ratings (mean =4.054), suggesting satisfaction with reward allocation. Interactional justice scored the lowest (mean =4.383), indicating potential issues in how employees perceive they are treated by management. Organizational citizenship behavior was evaluated through altruism, conscientiousness, civic virtue, and sportsmanship. Altruism and conscientiousness were strong, with employees showing willingness to help colleagues and maintain diligence. Civic virtue showed moderate engagement in organizational activities, while sportsmanship was evident in maintaining positive attitudes. The multiple liner regression model suggests that demographic factors like sex (p behavior. The output of the study gives valuable information for banks in the Guraghe Zone to enhance employee morale and organizational performance through targeted improvements in justice perceptions and organizational citizenship behavior.
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    EFFECTS OF RISK MANAGEMENT PRACTICE ON FINANCIAL PERFORMANCE: THE CASE OF MICRO FINANCE INSTITUTIONS IN GURAGHE ZONE
    (wolkite universty, 2025-08) MUZEMIL BEHJA
    This study investigates the relationship between risk management practices and the financial performance of microfinance institutions operating in the Guraghe Zone, Ethiopia. Employing a mixed-methods approach, the study combines quantitative analysis using statistical software, Eviews 10 with qualitative insights from in-depth interviews. The quantitative component analyzes panel data from 2015 to 2024 for a sample of five microfinance institutions. Specifically, it examines the relationship between key risk management indicators—Portfolio at Risk Ratio, Loan Loss Provision Ratio, Fraud Incidents, and Information Technology Security Expenditure—and a primary indicator of financial performance, Return on Assets. Panel least squares regression with fixed effects was used to assess these relationships. The qualitative component involved in-depth interviews with risk management personnel from the same five microfinance institutions. These interviews explored the microfinance institutions' credit risk management practices, operational risk management frameworks, and the main challenges encountered in implementing effective risk management strategies. The quantitative analysis revealed no statistically significant direct linear relationships between the measured risk management indicators and Return on Assets. While descriptive statistics and correlations provided initial insights into the variables and their associations, the regression results suggest that, within the employed model, the direct impact of these specific risk measures on profitability was not statistically discernible. The qualitative findings underscore the importance of comprehensive credit risk management practices, including thorough loan assessment, varied collateral approaches, and active loan monitoring. Furthermore, the microfinance institutions highlighted their operational risk management efforts, focusing on fraud prevention and Information Technology security. The study identified key challenges facing these microfinance institutions, such as limited access to reliable credit information and vulnerability to external shocks. The study recommends that Ethiopian microfinance institutions enhance credit risk assessment, strategically invest in operational risk management, collaborate for information sharing, diversify financial performance strategies, and further investigate liquidity risk management
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    EFFECTS OF DIGITAL BANKING SYSTEM ON BANKS PERFORMANCE: A COMPARATIVE STUDY ON PUBLIC & PRIVATE COMMERCIAL BANKS
    (wolkite universty, 2025-09) ABEBE FEKEDE
    The banking industry in Ethiopia is now booming due to the allowed free competition, a total of thirty two banks are now licensed to give financial services in Ethiopia and the competition is becoming intensive so that banks are now trying to achieve competitive advantage by differentiating their service quality like digitalization. In this study, an attempt was made to assess and compare the similarities and differences of private and public banks by using primary data comparative performance as perceived by head office employee of each selected banks in terms ATM, pos machine, mobile banking money transfer and internet banking of digital was used to meet the objective of the study. The data were collected using close ended questionnaires with a sample of 178 respondents were taken using simple random sampling technique from head office employee of selected bank. The secondary data was collected in central bank. The collected data from the employee was analyzed using descriptive and inferential statistical tools like mean, T-tes and panel regression of the year from 2016-2023. The results of the study revealed that the individual private bank study with Public bank, public bank has significant difference compare to Private banks except Dashen in the case of internet banking. In group study, the result of ATM, internet banking and pos machine has insignificant difference indicates that the number of customer use digital is similar. But in the case of mobile banking public bank has significant difference compare to private bank. The private banks are more profitable compare to public bank. The regression result indicates that internet banking and Posm have positive and significant effect on ROA and ATM and Mobile banking have negative and insignificant effect on ROA. ATM and internet banking have positive and significant effect on ROE and mobile bank has significant and negative effect on ROE. Finally as a whole, individually observed that public bank on the digital bank performed better than private bank and in the group both banks have similar capacity on digital bank utilization performance. Digital bank has significant effect on the performance of bank.
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    EFFECT OF EMPLOYEE MOTIVATION ON EMPLOYEES’ SERVICE DELIVERY PERFORMANCE IN SELECTED COMMERCIAL BANKS IN GURAGE ZONE CENTRAL ETHIOPIA
    (wolkite universty, 2025-09) - ETENESH WENDIMENEH
    This study aimed to examine the effect of employee motivation on service delivery performance in selected commercial banks in the Gurage zone of central Ethiopia, employing a descriptive and explanatory research design with a quantitative approach. Data were collected using standardized questionnaires with a 91.4% response rate from a census sample of 234 permanent employees and analyzed using descriptive statistics, Pearson correlation, and multiple linear regressions. The regression analysis revealed that goal setting (β=.290, p<.001), financial incentive (β=.235,p<.001), recognition and reward (β=.169,p<.001), job satisfaction (β=.190,p<.001), and job design (β=.350,p<.001) all had a positive and significant effect on service delivery performance, thus supporting all the formulated hypotheses. The study recommends that the selected commercial banks should prioritize and enhance these motivational factors to improve employee performance and consequently boost service delivery quality
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    Effect of Financial Management Practice on Organization Accountability in the case of Gurage Zone, Central Ethiopia
    (wolkite universty, 2025-08) Yohanes Mengistu Haile
    Effective public financial management is critical for transparency, resource allocation, and trust in governance, yet challenges persist in developing countries, particularly in aid-dependent regions. The general goal of this study is to assessing the effect of financial management practice on organizational accountability in case of Gurage zone public sector. Conducting statistical analyses, such as multiple regressions, to look at the effect between independent and the dependent variables (organizational accountability), combining quantitative and qualitative data from 89 respondents in the Gurage Zone Internal Revenue Service. Multiple linear regression reveals that financial planning and budgeting, financial control mechanisms, Training for financial staff, and action on audit recommendations significantly enhance organizational accountability (p
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    EFFECTS OF ROAD TRANSPORTATION MANAGEMENT SERVICE DELIVERY PRACTICE ON CUSTOMER SATISFACTION IN GURAGE ZONE
    (wolkite universty, 2025-09) TINA AKLILE
    The purpose of this study was to examine the effect of road transportation management service delivery on customer satisfaction in Gurage zone. The result of this study will be significant in various aspects. The significance of studying road transportation management practice's effect on customer satisfaction lies in its potential to improve the overall quality of service. Understanding how different management practices affect customer satisfaction can lead to the development of more effective strategies for meeting customer needs and expectations. This, in turn, can lead to increased customer loyalty, positive word-of-mouth referrals, and ultimately, improved business performance. This can lead to better resource allocation, cost savings, and improved operational efficiency. Moreover, a better understanding of the relationship between road transportation management practices and customer satisfaction can also help policymakers and regulators to develop more effective policies and regulations that promote a better customer experience and a more sustainable transportation system.