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Title: The Effect of Capital Structure on Financial Performance of Microfinance Institutions in Ethiopia
???metadata.dc.contributor.*???: Degefe Duressa(Dr.)
Yohannes, LIku
Keywords: Debt Financing;Microfinance;profitability
Issue Date: Jan-2017
Publisher: A.A.U
Abstract: This study was undertaken with the objective of identifying the effect of capital structure on microfinance institutions financial performance in Ethiopia. The study was based on thirteen microfinance institutions, within the period of 2010-2015, which are practicing micro-financing business at present. The collected secondary data were analyzed through usage of panel data analysis technique by the help of eview 8.0 software and the finding shows that most of the microfinance institutions had employed high leverage. The mean total debt ratio was around 63% as well as the average deposit to total asset ratio shows a mean value of 42.2%. All other variables except firm size do have a positive relation with financial performance measured by (profitability) of microfinance institutions in Ethiopia. Finally, the study recommended that microfinance institutions in Ethiopia should employ more debt, which is up to optimal level in to their capital structure, so as to maximize their financial gain (profitability).
Description: A Thesis Submitted to the School of Graduate Studies of Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of Masters of Science in Accounting and Finance.
Appears in Collections:Thesis - Accounting & Finance

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