International Journal of Research in Commerce and Management, Jun 8, 2012
Using an econometric approach on unbalanced panel data collected from 23 microfinance institution... more Using an econometric approach on unbalanced panel data collected from 23 microfinance institutions (MFIs) in East Africa from the period 2004 to 2009, this study has identified the determinants of operational self sufficiency of MFIs. The random effects GLS regression results show that MFIs' operational sustainability (OSS) is positively and significantly driven by the ratio of gross loan portfolio to total asset and breadth of outreach. Management efficiency measured by operating expenses /asset ratio and credit risk measured by PAR > 30 days have a negative and significant impact on operational sustainability of MFIs. Another interesting result is that MFIs in East Africa have performed even better, in terms of OSS, during the global financial crisis though the result is not statistically significant. Finally, GDP growth has a positive and significant impact on OSS at 95% confidence interval. Thus, management efficiency, loans intensity, portfolio at risk, breadth of outreach and GDP growth are important determinants of MFIs' operational sustainability in East Africa.
Poverty eradication is at the forefront of the development strategy of Africa. Interventions thro... more Poverty eradication is at the forefront of the development strategy of Africa. Interventions through the delivery of microfinance services are considered as one of the policy instruments to eradicate poverty. However, for sustainable poverty alleviation, the MFIs themselves should be financially sustainable. Given the relation between the well being of the microfinance sector and the goal of poverty eradication, the purpose of this paper is to empirically investigate the determinants of financial sustainability of microfinance institutions in East Africa where poverty is a serious problem. Binary probit and ordered probit regression models are used in this study in identifying the factors that determine East African microfinance institutions' financial sustainability. Using unbalanced panel data collected from 23 microfinance institutions (MFIs) in East Africa from the period 2004 to 2009, the regression results reveal that MFIs' financial sustainability is positively and significantly driven by loans intensity and size. However, management inefficiency and portfolio at risk have a negative and significant impact on financial sustainability. Breadth of outreach and deposit mobilization are not important determinants of financial sustainability. Thus, management inefficiency, portfolio at risk, loans intensity, and size are important determinants of microfinance institutions' financial sustainability in East Africa.
The performance of any business firm not only plays the role to improve the market value of that ... more The performance of any business firm not only plays the role to improve the market value of that specific firm but also leads towards the growth of the whole sector which ultimately leads towards the overall prosperity of the economy. Assessing the determinants of the performance of organizations has gained importance in the corporate finance literature; however, in the context of insurance sector, it has received little attention particularly in Ethiopia. Accordingly, this study investigated the impact of firm level characteristics (size, leverage, tangibility, Loss ratio (risk), growth in writing premium, liquidity and age) on performance of insurance companies in Ethiopia. Return on total assets (ROA)-a key indicator of insurance company's performance-is used as dependent variable while age of company, size of the company, growth in writing premium, liquidity, leverage and loss ratio are independent variables. The sample includes 9 insurance companies over the period 2005-2010. The audited annual reports (Balance sheet and Profit/Loss account) of insurance companies were obtained from National Bank of Ethiopia (NBE) and insurance companies' annual publication reports. The results of regression analysis reveal that insurers' size, tangibility and leverage are statistically significant and positively related with return on total asset; however, loss ratio (risk) is statistically significant and negatively related with ROA. Thus, insurers' size, Loss ratio (risk), tangibility and leverage are important determinants of performance of insurance companies in Ethiopia. But, growth in writing premium, insurers' age and liquidity have statistically insignificant relationship with ROA.
In Ethiopia, MSEs have become the favorite of policy makers as they are believed to play a critic... more In Ethiopia, MSEs have become the favorite of policy makers as they are believed to play a critical role in addressing both poverty reduction and economic growth goals. Over the years, while some MSEs have grown extremely large and profitable, many others have failed or have not been as successful as they might have been. This study seeks to identify the factors that hamper the success of Micro and Small Enterprises in Amhara region of Ethiopia since studies aimed at assessing the same are virtually missing. This study employed a quantitative research approach using a descriptive survey design. The data was drawn from a survey of 316 MSEs in Amhara region, Ethiopia. Statistical models including One Way Analysis of Variance (ANOVA) and Ttest are used to analyze the data apart from other descriptive statistics such as percentages and mean. The study has revealed that working premises, marketing and financial factors are the three most serious factors that hamper the success of MSEs. We suggest that since the real challenges of MSEs change over time, the challenges of MSEs must be studied at some periodic interval to identify the real challenges of MSEs of the time and take appropriate action timely. The study contributes to the existing literature by revealing the critical factors that hamper the success of MSEs and may help the local government to devise ways to support these enterprises in efforts to eradicate poverty and achieve sustainable development by 2030.
Prior to public procurement reform in Ethiopia, non compliance with the country’s public procurem... more Prior to public procurement reform in Ethiopia, non compliance with the country’s public procurement rules and regulations was observed. These include inefficiency, non transparent procurement processes, and lack of knowledge of rules and regulations. The main objective of this study is to identify factors leading to effective public procurement implementation in Ethiopia with particular reference to Amhara regional bureaus and other government institutions found in Bahir Dar town. The study used data from a survey of 42 public procurement officers. The data were collected using questionnaire containing close-ended items of Likert scale type with five points. The data had been analyzed using multiple linear regression. The findings indicate that familiarity in public procurement rules and regulations, transparency in public procurement processes, ethics in public procurement and efficiency in public procurement processes have a positive and statistically significant impact on effect...
To plan a suitable marketing strategy, to keep existing customers and for attracting new customer... more To plan a suitable marketing strategy, to keep existing customers and for attracting new customers, commercial banks need to identify the criteria by which customers determine their bank selection decision. The central objective of this study is to examine determinants of customers ’ bank selection decision in private and state owned Commercial banks in Ethiopia. The study employed survey type specifically questionnaire to collect data from sample respondents of 204 customers in five Commercial Banks. Results of the multinomial regression model indicated that friendly or pleasing manner of staff, ATM service, bank speed, service quality, external bank appearance and internal sitting arrangement, secured feeling, proximity to home or work place, availability of several branches and long operating hours were significant factors whereas others ’ recommendations, number of counter windows, safety of funds, good reception at the bank and low service charge were insignificant factors for ...
PurposeWhile poverty alleviation is the first core goal of Sustainable Development Goals (SDGs), ... more PurposeWhile poverty alleviation is the first core goal of Sustainable Development Goals (SDGs), and microfinance institutions (MFIs) are considered important instruments for poverty alleviation in developing countries as they provide credit access to the poor, there is surprisingly little evidence of the drivers of the lending behavior of microfinance institutions. Hence, the purpose of this study is to identify the factors that influence the credit growth of MFIs in Sub-Saharan Africa (SSA).Design/methodology/approachThe study relies on unbalanced panel dataset of 130 MFIs operating across 31 countries in SSA during the period 2004–2014 constituting 546 useable observations. The study uses the Arellano-Bover/Blundell-Bond two-step generalized method of moments (GMM) Windmeijer bias-corrected standard errors to estimate the models.FindingsThe results confirm that while capitalization, liquidity and size are positively associated with credit growth, profitability negatively impacts ...
To plan a suitable marketing strategy, to keep existing customers and for attracting new customer... more To plan a suitable marketing strategy, to keep existing customers and for attracting new customers, commercial banks need to identify the criteria by which customers determine their bank selection decision. The central objective of this study is to examine determinants of customers’ bank selection decision in private and state owned Commercial banks in Ethiopia. The study employed survey type specifically questionnaire to collect data from sample respondents of 204 customers in five Commercial Banks. Results of the multinomial regression model indicated that friendly or pleasing manner of staff, ATM service, bank speed, service quality, external bank appearance and internal sitting arrangement, secured feeling, proximity to home or work place, availability of several branches and long operating hours were significant factors whereas others’ recommendations, number of counter windows, safety of funds, good reception at the bank and low service charge were insignificant factors for ba...
Prior to public procurement reform in Ethiopia, non compliance with the country’s public procurem... more Prior to public procurement reform in Ethiopia, non compliance with the country’s public procurement rules and regulations was observed. These include inefficiency, non transparent procurement processes, and lack of knowledge of rules and regulations. The main objective of this study is to identify factors leading to effective public procurement implementation in Ethiopia with particular reference to Amhara regional bureaus and other government institutions found in Bahir Dar town. The study used data from a survey of 42 public procurement officers. The data were collected using questionnaire containing close-ended items of Likert scale type with five points. The data had been analyzed using multiple linear regression. The findings indicate that familiarity in public procurement rules and regulations, transparency in public procurement processes, ethics in public procurement and efficiency in public procurement processes have a positive and statistically significant impact on effect...
International Journal of Research in Commerce, IT and Management, 2013
The purpose of this study is to examine the relationship between dividend policy and bank perform... more The purpose of this study is to examine the relationship between dividend policy and bank performance. To achieve this purpose, data is obtained from Banking Supervision department of national bank of Ethiopia and from the website of banks. The study used panel data constructed from the financial statements of 6 private commercial banks in Ethiopia for a period of 8 years, from 2005-2012. Then empirical testing was made using the Pooled OLS regression model. The empirical results of this study show that dividend policy affects bank performance negatively and significantly. In this study, a proxy of dividend policy is dividend payout measured as dividend to net income of the banks. From the results of the study, the average dividend paid by banks over the study period was 48%. The results also reinforce earlier findings that leverage and size of a bank enhance the performance of banks. However, credit risk has a negative and significant relationship with bank performance. Generally, the result is similar to earlier studies that dividend policy has an effect on firm performance.
The purpose of this study is to assess the financial performance of Ethiopian MFIs during the cur... more The purpose of this study is to assess the financial performance of Ethiopian MFIs during the current financial crisis with particular reference to Amhara Credit and Saving Institution (ACSI), the largest MFI in the country. The global financial crisis has been spreading quickly in emerging markets, but little is known about its impact on the microfinance sector. It is in this vacuum that this study is being carried out especially within Ethiopia. The study employed a descriptive research design. The data is quantitative and obtained from the MIX market website. For data analysis, descriptive statistics such as percentages and graph are used. The result of the study indicates that there was a negative shift in the performance indicators particularly in the year 2009. The gross loan portfolio has declined by 15.73% in the year 2009. As a result a decline in ROA and ROE had occurred due to lost financial revenue. The portfolio at risk rose during 2008 and 2009 indicating deterioration...
This article examines the effects of location and legal status on the performance of microfinance... more This article examines the effects of location and legal status on the performance of microfinance institutions (MFIs) within sub-Saharan Africa (SSA) using panel dataset of 138 MFIs in 31 SSA countries covering 2004 to 2014. The econometric results show that legal status and location significantly influence the capitalisation, portfolio quality, profitability, liquidity, and deposit mobilisation of MFIs. MFI credit growth and deposit growth are similar across locations, but significantly differ by legal status. Most importantly, we found new evidence that location has moderating effect on the legal status–performance nexus of MFIs within SSA.
Poverty eradication is at the forefront of the development strategy of Africa. Interventions thro... more Poverty eradication is at the forefront of the development strategy of Africa. Interventions through the delivery of microfinance services are considered as one of the policy instruments to eradicate poverty. However, for sustainable poverty alleviation, the MFIs themselves should be financially sustainable. Given the relation between the well being of the microfinance sector and the goal of poverty eradication, the purpose of this paper is to empirically investigate the determinants of financial sustainability of microfinance institutions in East Africa where poverty is a serious problem. Binary probit and ordered probit regression models are used in this study in identifying the factors that determine East African microfinance institutions’ financial sustainability. Using unbalanced panel data collected from 23 microfinance institutions (MFIs) in East Africa from the period 2004 to 2009, the regression results reveal that MFIs’ financial sustainability is positively and significan...
While credit risk is one of the main risks of banks and affects the development of the financial ... more While credit risk is one of the main risks of banks and affects the development of the financial system, little study is done to examine its determinants. This study examined the bank- specific determinants of credit risk in Ethiopian commercial banks. The quantitative research approach was adopted for the study. A balanced panel data of 10 commercial banks both state-owned and private owned for the period 2007 through 2011 has been analyzed using random effects GLS regression. The regression results revealed that credit growth and bank size have negative and statistically significant impact on credit risk. Whereas, operating inefficiency and ownership have positive and statistically significant impact on credit risk. Finally, the results indicate that profitability, capital adequacy and bank liquidity have negative but statistically insignificant relationship with credit risk. Key w ords: Banks, credit risk, Ethiopia
Journal of economics and sustainable development, 2014
In the Ethiopian government five year Growth and Transformation Plan, it has been clearly stated ... more In the Ethiopian government five year Growth and Transformation Plan, it has been clearly stated that efforts will be geared towards promoting compliance and equipping tax collection institutions with adequate enforcement power which will further boost revenue mobilization at federal and regional levels. The country’s tax mobilization was also the lowest among most African countries and thus, identifying the factors that determine tax compliance behavior has been open for empirical investigation. Accordingly, using one-way ANOVA, two samples and one sample T- test, this study examined the determinants of tax compliance behavior in Ethiopia particularly in Bahir Dar city administration. The data was collected using structured questionnaire. The results revealed that perception on government spending; perception on equity and fairness of the tax system; penalties; personal financial constraint; changes on current government policies; and referral group (friends, relatives etc.) are fa...
International Journal of Research in Commerce and Management, Jun 8, 2012
Using an econometric approach on unbalanced panel data collected from 23 microfinance institution... more Using an econometric approach on unbalanced panel data collected from 23 microfinance institutions (MFIs) in East Africa from the period 2004 to 2009, this study has identified the determinants of operational self sufficiency of MFIs. The random effects GLS regression results show that MFIs' operational sustainability (OSS) is positively and significantly driven by the ratio of gross loan portfolio to total asset and breadth of outreach. Management efficiency measured by operating expenses /asset ratio and credit risk measured by PAR > 30 days have a negative and significant impact on operational sustainability of MFIs. Another interesting result is that MFIs in East Africa have performed even better, in terms of OSS, during the global financial crisis though the result is not statistically significant. Finally, GDP growth has a positive and significant impact on OSS at 95% confidence interval. Thus, management efficiency, loans intensity, portfolio at risk, breadth of outreach and GDP growth are important determinants of MFIs' operational sustainability in East Africa.
Poverty eradication is at the forefront of the development strategy of Africa. Interventions thro... more Poverty eradication is at the forefront of the development strategy of Africa. Interventions through the delivery of microfinance services are considered as one of the policy instruments to eradicate poverty. However, for sustainable poverty alleviation, the MFIs themselves should be financially sustainable. Given the relation between the well being of the microfinance sector and the goal of poverty eradication, the purpose of this paper is to empirically investigate the determinants of financial sustainability of microfinance institutions in East Africa where poverty is a serious problem. Binary probit and ordered probit regression models are used in this study in identifying the factors that determine East African microfinance institutions' financial sustainability. Using unbalanced panel data collected from 23 microfinance institutions (MFIs) in East Africa from the period 2004 to 2009, the regression results reveal that MFIs' financial sustainability is positively and significantly driven by loans intensity and size. However, management inefficiency and portfolio at risk have a negative and significant impact on financial sustainability. Breadth of outreach and deposit mobilization are not important determinants of financial sustainability. Thus, management inefficiency, portfolio at risk, loans intensity, and size are important determinants of microfinance institutions' financial sustainability in East Africa.
The performance of any business firm not only plays the role to improve the market value of that ... more The performance of any business firm not only plays the role to improve the market value of that specific firm but also leads towards the growth of the whole sector which ultimately leads towards the overall prosperity of the economy. Assessing the determinants of the performance of organizations has gained importance in the corporate finance literature; however, in the context of insurance sector, it has received little attention particularly in Ethiopia. Accordingly, this study investigated the impact of firm level characteristics (size, leverage, tangibility, Loss ratio (risk), growth in writing premium, liquidity and age) on performance of insurance companies in Ethiopia. Return on total assets (ROA)-a key indicator of insurance company's performance-is used as dependent variable while age of company, size of the company, growth in writing premium, liquidity, leverage and loss ratio are independent variables. The sample includes 9 insurance companies over the period 2005-2010. The audited annual reports (Balance sheet and Profit/Loss account) of insurance companies were obtained from National Bank of Ethiopia (NBE) and insurance companies' annual publication reports. The results of regression analysis reveal that insurers' size, tangibility and leverage are statistically significant and positively related with return on total asset; however, loss ratio (risk) is statistically significant and negatively related with ROA. Thus, insurers' size, Loss ratio (risk), tangibility and leverage are important determinants of performance of insurance companies in Ethiopia. But, growth in writing premium, insurers' age and liquidity have statistically insignificant relationship with ROA.
In Ethiopia, MSEs have become the favorite of policy makers as they are believed to play a critic... more In Ethiopia, MSEs have become the favorite of policy makers as they are believed to play a critical role in addressing both poverty reduction and economic growth goals. Over the years, while some MSEs have grown extremely large and profitable, many others have failed or have not been as successful as they might have been. This study seeks to identify the factors that hamper the success of Micro and Small Enterprises in Amhara region of Ethiopia since studies aimed at assessing the same are virtually missing. This study employed a quantitative research approach using a descriptive survey design. The data was drawn from a survey of 316 MSEs in Amhara region, Ethiopia. Statistical models including One Way Analysis of Variance (ANOVA) and Ttest are used to analyze the data apart from other descriptive statistics such as percentages and mean. The study has revealed that working premises, marketing and financial factors are the three most serious factors that hamper the success of MSEs. We suggest that since the real challenges of MSEs change over time, the challenges of MSEs must be studied at some periodic interval to identify the real challenges of MSEs of the time and take appropriate action timely. The study contributes to the existing literature by revealing the critical factors that hamper the success of MSEs and may help the local government to devise ways to support these enterprises in efforts to eradicate poverty and achieve sustainable development by 2030.
Prior to public procurement reform in Ethiopia, non compliance with the country’s public procurem... more Prior to public procurement reform in Ethiopia, non compliance with the country’s public procurement rules and regulations was observed. These include inefficiency, non transparent procurement processes, and lack of knowledge of rules and regulations. The main objective of this study is to identify factors leading to effective public procurement implementation in Ethiopia with particular reference to Amhara regional bureaus and other government institutions found in Bahir Dar town. The study used data from a survey of 42 public procurement officers. The data were collected using questionnaire containing close-ended items of Likert scale type with five points. The data had been analyzed using multiple linear regression. The findings indicate that familiarity in public procurement rules and regulations, transparency in public procurement processes, ethics in public procurement and efficiency in public procurement processes have a positive and statistically significant impact on effect...
To plan a suitable marketing strategy, to keep existing customers and for attracting new customer... more To plan a suitable marketing strategy, to keep existing customers and for attracting new customers, commercial banks need to identify the criteria by which customers determine their bank selection decision. The central objective of this study is to examine determinants of customers ’ bank selection decision in private and state owned Commercial banks in Ethiopia. The study employed survey type specifically questionnaire to collect data from sample respondents of 204 customers in five Commercial Banks. Results of the multinomial regression model indicated that friendly or pleasing manner of staff, ATM service, bank speed, service quality, external bank appearance and internal sitting arrangement, secured feeling, proximity to home or work place, availability of several branches and long operating hours were significant factors whereas others ’ recommendations, number of counter windows, safety of funds, good reception at the bank and low service charge were insignificant factors for ...
PurposeWhile poverty alleviation is the first core goal of Sustainable Development Goals (SDGs), ... more PurposeWhile poverty alleviation is the first core goal of Sustainable Development Goals (SDGs), and microfinance institutions (MFIs) are considered important instruments for poverty alleviation in developing countries as they provide credit access to the poor, there is surprisingly little evidence of the drivers of the lending behavior of microfinance institutions. Hence, the purpose of this study is to identify the factors that influence the credit growth of MFIs in Sub-Saharan Africa (SSA).Design/methodology/approachThe study relies on unbalanced panel dataset of 130 MFIs operating across 31 countries in SSA during the period 2004–2014 constituting 546 useable observations. The study uses the Arellano-Bover/Blundell-Bond two-step generalized method of moments (GMM) Windmeijer bias-corrected standard errors to estimate the models.FindingsThe results confirm that while capitalization, liquidity and size are positively associated with credit growth, profitability negatively impacts ...
To plan a suitable marketing strategy, to keep existing customers and for attracting new customer... more To plan a suitable marketing strategy, to keep existing customers and for attracting new customers, commercial banks need to identify the criteria by which customers determine their bank selection decision. The central objective of this study is to examine determinants of customers’ bank selection decision in private and state owned Commercial banks in Ethiopia. The study employed survey type specifically questionnaire to collect data from sample respondents of 204 customers in five Commercial Banks. Results of the multinomial regression model indicated that friendly or pleasing manner of staff, ATM service, bank speed, service quality, external bank appearance and internal sitting arrangement, secured feeling, proximity to home or work place, availability of several branches and long operating hours were significant factors whereas others’ recommendations, number of counter windows, safety of funds, good reception at the bank and low service charge were insignificant factors for ba...
Prior to public procurement reform in Ethiopia, non compliance with the country’s public procurem... more Prior to public procurement reform in Ethiopia, non compliance with the country’s public procurement rules and regulations was observed. These include inefficiency, non transparent procurement processes, and lack of knowledge of rules and regulations. The main objective of this study is to identify factors leading to effective public procurement implementation in Ethiopia with particular reference to Amhara regional bureaus and other government institutions found in Bahir Dar town. The study used data from a survey of 42 public procurement officers. The data were collected using questionnaire containing close-ended items of Likert scale type with five points. The data had been analyzed using multiple linear regression. The findings indicate that familiarity in public procurement rules and regulations, transparency in public procurement processes, ethics in public procurement and efficiency in public procurement processes have a positive and statistically significant impact on effect...
International Journal of Research in Commerce, IT and Management, 2013
The purpose of this study is to examine the relationship between dividend policy and bank perform... more The purpose of this study is to examine the relationship between dividend policy and bank performance. To achieve this purpose, data is obtained from Banking Supervision department of national bank of Ethiopia and from the website of banks. The study used panel data constructed from the financial statements of 6 private commercial banks in Ethiopia for a period of 8 years, from 2005-2012. Then empirical testing was made using the Pooled OLS regression model. The empirical results of this study show that dividend policy affects bank performance negatively and significantly. In this study, a proxy of dividend policy is dividend payout measured as dividend to net income of the banks. From the results of the study, the average dividend paid by banks over the study period was 48%. The results also reinforce earlier findings that leverage and size of a bank enhance the performance of banks. However, credit risk has a negative and significant relationship with bank performance. Generally, the result is similar to earlier studies that dividend policy has an effect on firm performance.
The purpose of this study is to assess the financial performance of Ethiopian MFIs during the cur... more The purpose of this study is to assess the financial performance of Ethiopian MFIs during the current financial crisis with particular reference to Amhara Credit and Saving Institution (ACSI), the largest MFI in the country. The global financial crisis has been spreading quickly in emerging markets, but little is known about its impact on the microfinance sector. It is in this vacuum that this study is being carried out especially within Ethiopia. The study employed a descriptive research design. The data is quantitative and obtained from the MIX market website. For data analysis, descriptive statistics such as percentages and graph are used. The result of the study indicates that there was a negative shift in the performance indicators particularly in the year 2009. The gross loan portfolio has declined by 15.73% in the year 2009. As a result a decline in ROA and ROE had occurred due to lost financial revenue. The portfolio at risk rose during 2008 and 2009 indicating deterioration...
This article examines the effects of location and legal status on the performance of microfinance... more This article examines the effects of location and legal status on the performance of microfinance institutions (MFIs) within sub-Saharan Africa (SSA) using panel dataset of 138 MFIs in 31 SSA countries covering 2004 to 2014. The econometric results show that legal status and location significantly influence the capitalisation, portfolio quality, profitability, liquidity, and deposit mobilisation of MFIs. MFI credit growth and deposit growth are similar across locations, but significantly differ by legal status. Most importantly, we found new evidence that location has moderating effect on the legal status–performance nexus of MFIs within SSA.
Poverty eradication is at the forefront of the development strategy of Africa. Interventions thro... more Poverty eradication is at the forefront of the development strategy of Africa. Interventions through the delivery of microfinance services are considered as one of the policy instruments to eradicate poverty. However, for sustainable poverty alleviation, the MFIs themselves should be financially sustainable. Given the relation between the well being of the microfinance sector and the goal of poverty eradication, the purpose of this paper is to empirically investigate the determinants of financial sustainability of microfinance institutions in East Africa where poverty is a serious problem. Binary probit and ordered probit regression models are used in this study in identifying the factors that determine East African microfinance institutions’ financial sustainability. Using unbalanced panel data collected from 23 microfinance institutions (MFIs) in East Africa from the period 2004 to 2009, the regression results reveal that MFIs’ financial sustainability is positively and significan...
While credit risk is one of the main risks of banks and affects the development of the financial ... more While credit risk is one of the main risks of banks and affects the development of the financial system, little study is done to examine its determinants. This study examined the bank- specific determinants of credit risk in Ethiopian commercial banks. The quantitative research approach was adopted for the study. A balanced panel data of 10 commercial banks both state-owned and private owned for the period 2007 through 2011 has been analyzed using random effects GLS regression. The regression results revealed that credit growth and bank size have negative and statistically significant impact on credit risk. Whereas, operating inefficiency and ownership have positive and statistically significant impact on credit risk. Finally, the results indicate that profitability, capital adequacy and bank liquidity have negative but statistically insignificant relationship with credit risk. Key w ords: Banks, credit risk, Ethiopia
Journal of economics and sustainable development, 2014
In the Ethiopian government five year Growth and Transformation Plan, it has been clearly stated ... more In the Ethiopian government five year Growth and Transformation Plan, it has been clearly stated that efforts will be geared towards promoting compliance and equipping tax collection institutions with adequate enforcement power which will further boost revenue mobilization at federal and regional levels. The country’s tax mobilization was also the lowest among most African countries and thus, identifying the factors that determine tax compliance behavior has been open for empirical investigation. Accordingly, using one-way ANOVA, two samples and one sample T- test, this study examined the determinants of tax compliance behavior in Ethiopia particularly in Bahir Dar city administration. The data was collected using structured questionnaire. The results revealed that perception on government spending; perception on equity and fairness of the tax system; penalties; personal financial constraint; changes on current government policies; and referral group (friends, relatives etc.) are fa...
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Papers by Tilahun Aemiro Tehulu