College of Bussines and Economics

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

College of Bussines and Economics

Browse

Start date: 2020Subject: search.filters.subject.Ethiopia

Search Results

Now showing 1 - 6 of 6
  • No Thumbnail Available
    Item
    CORPORATE GOVERNANCE AND ITS IMPACT ON PERFORMANCE (SOCIAL AND FINANCIAL): EVIDENCE FROM MFIs IN ETHIOPIA
    (wolkite university, 2021-06-05) 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 Asset respectively. In addition to main explanatory variables, control variables MFIs Size were also included within the study variables. Both primary and secondary data were used in which primary data regarding board characteristics was collected through questionnaire and secondary data was obtained from MFIs, NBE and AEMFIs. Panel data covering six year from 2014-2019 was analyzed for sixteen microfinance institutions. The regression results revealed that board size, board educational qualification, meeting frequency and CEO with dual responsibility have positive relationship with financial performance of MFIs while board experience in the financial sector, board audit committee size and firm size has statistically negative relationship. Board educational qualification, meeting frequency, audit committee size and firm size have positive relationship with social (breath of outreach) while board size, board experience in the financial sector, and CEO with dual responsibility have negative relationship. Board size, Board educational qualification, audit committee size and firm size have positive relationship with social (depth of outreach) while board experience in the financial sector, meeting frequency and CEO with dual responsibility have negative relationship. Based on empirical result of the study, it is recommended that CEO with dual responsibility should be separate for better performance. Furthermore, in order to reduce the problem of management failures which put at risk the money obtained from the public and other sources, the governance mechanisms of MFIs have to be effective (i.e. creating and maintaining a business environment that motivates managers and entrepreneurs to maximize firm’s operational efficiency, returns on investment and or on equity and long term productivity).
  • No Thumbnail Available
    Item
    CORPORATE GOVERNANCE AND ITS IMPACT ON PERFORMANCE (SOCIAL AND FINANCIAL): EVIDENCE FROM MFIs IN ETHIOPIA
    (wolkite university, 2021-03-09) 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 Asset respectively. In addition to main explanatory variables, control variables MFIs Size were also included within the study variables. Both primary and secondary data were used in which primary data regarding board characteristics was collected through questionnaire and secondary data was obtained from MFIs, NBE and AEMFIs. Panel data covering six year from 2014-2019 was analyzed for sixteen microfinance institutions. The regression results revealed that board size, board educational qualification, meeting frequency and CEO with dual responsibility have positive relationship with financial performance of MFIs while board experience in the financial sector, board audit committee size and firm size has statistically negative relationship. Board educational qualification, meeting frequency, audit committee size and firm size have positive relationship with social (breath of outreach) while board size, board experience in the financial sector, and CEO with dual responsibility have negative relationship. Board size, Board educational qualification, audit committee size and firm size have positive relationship with social (depth of outreach) while board experience in the financial sector, meeting frequency and CEO with dual responsibility have negative relationship. Based on empirical result of the study, it is recommended that CEO with dual responsibility should be separate for better performance. Furthermore, in order to reduce the problem of management failures which put at risk the money obtained from the public and other sources, the governance mechanisms of MFIs have to be effective (i.e. creating and maintaining a business environment that motivates managers and entrepreneurs to maximize firm’s operational efficiency, returns on investment and or on equity and long term productivity).
  • No Thumbnail Available
    Item
    DETERMINANTS OF CAPITAL STRUCTURE: EVIDENCE FROM MANUFACTURING FIRMS IN ETHIOPIA
    (wolkite university, 2022-06-07) JIMMAWORK G/MESKEL
    The 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 firms.
  • Thumbnail Image
    Item
    THE EFFECT OF TALENT MANAGEMENT ON ORGANIZATIONAL PERFORMANCE; THE CASE OF SELECTED PUBLIC SECTORS IN SILTIE ZONE, SNNPS, ETHIOPIA
    (wolkite universty, 2022-09) AHMEDIN KEMAL AMDA
    Talent management is rapidly gaining focus in organizations around the world. The aim of this study was to examine the effect of Talent management practice on organizational performance. The nature of this study was Quantitative research approach with explanatory research design. Cross sectional data was collected using A standardized five-point Likert scale questionnaire. The population of this study was employees working in selected public sectors, in Silte Zone, SNNPR, Ethiopia. Out of 357 respondents, workable data were obtained from 273 respondents using proportional, purposive, and Random sampling techniques. The Pearson correlation, Simple and multiple linear regression as well as Independent T-Test and One-Way ANOVA were used. The data was analyzed using statistical package for social science (SPSS) version 23. The Pearson correlation analysis result (P< 0.01 level 2- tailed), clearly shows that there is a positively Strong and moderate level correlation between Six TM practices and organizational performance. Moreover, the regression analysis result shows that All of TM practices Except Performance Management, and Reward and Recognition, have a statistically significant effect on organizational performance. The Independent Sample T- Test, and One-way ANOVA Test result shows that there is no Statistically significant mean difference between the sample population of the study area. Based on the results, the study recommended the need to place more focus and effort on the realization and application of effective talent management practices to overcome the difficulties of implementing talent management and Increase organizational performance. Managers are advised to emphasize on applying the Talent management Strategy so that they can connect Talent management strategy with the organizational strategy.
  • Thumbnail Image
    Item
    EFFECTS OF INTEREST FREE BANKING ON THE DEPOSIT MOBILIZATION OF COMMERCIAL BANKS IN ETHIOPIA CASE STUDY: - OF SELECTED COMMERCIAL BANKS
    (WOLKITE UNIVERSITY, 2021-07) TALEMA KEBERE ABATE
    The study was attempted to investigate the effect of interest free banking on the deposit mobilization of commercial banks in Ethiopian using secondary data. The data were obtained from audited financial statements of eight sampled commercial banks for the period of 2016 to 2019 and National bank of Ethiopia report. The novel features of the study was the analysis of interest free banking which was missed by other researcher; branch networking, nominal GDP, inflation rate, money supply as explanatory variables. The study used banks deposit as dependent variable. Both descriptive statistics and econometrics model specifically fixed effects estimation were used to analyze the relationships of dependent variable with explanatory variables. Different diagnostic tests namely test for zero mean of error terms, homoscedasticity, no autocorrelation; no multicollinearity and normality were conducted to check the appropriateness of the model. The diagnostic results show that none of the classical linear regression model assumption is violated. The Fixed-effect model results show that interest free banking and branch networking were strongly positive and significantly related to bank’s industry deposit performance, while inflation rate has a negative impact on deposits of bank specific drivers. Therefore, in order to aid the progress of Islamic banking in Ethiopia and reap the most benefit for the country, a legislative framework should be instituted to improve the segment’s regulation and commercial banks should open more branches in order to increase their deposit. The government also should keep the inflation rate single by decreasing money supply in the economy.
  • Thumbnail Image
    Item
    ENERGY EFFICIENCY AND ECONOMIC GROWTH IN ETHIOPIA TIME SERIES ANALYSIS
    (WOLKITE UNIVERSITY, 2020-08) DESALEGN DEBEBE SORATO
    We have limited studies on the relationship between energy efficiency and economic growth in the context of sub Saharan Africa where efficient energy supply is limited although energy is vital to meet sustainable development goals. Considering this, this study investigates the long run relationship between energy efficiency and the economic growth in Ethiopia for the period 1974/75 to 2017/18. Multivariate time series analysis was employed. The result indicated that the existence of unidirectional causality running from economic growth to energy efficiency. Similarly, for the sectoral share of GDP, the unidirectional causality runs from energy efficiency to industry share while as bidirectional causality runs from service shares to energy efficiency and vice versa. The speed of adjustment coefficient indicates that the previous period disequilibrium adjusts to equilibrium at the rate of 59.2% annually. Impulse response function specifies responsiveness of the energy efficiency in the model to the shocks in the error term indicated that economic growth has significant influence while variance decomposition measured the strength of causality relationship showed high causal effect to energy efficiency. The overall result showed that increased economic growth has a strong cause of energy efficiency in Ethiopia. The government needs to give more importance to sustain economic growth so that both the wellbeing and the energy efficiency of the nation are improved.