Business Administration in Finance

Permanent URI for this collection

http://etd.aau.edu.et/handle/123456789/4

Browse

Browsing Business Administration in Finance by Author "Abebaw, Kassie (PhD)"

Now showing 1 - 3 of 3
  • No Thumbnail Available
    Item
    Determinants of Nonperforming Loans: Evidence from Commercial Banks in Ethiopia
    (Addis Ababa University, 2019-05) Kibur, Minas; Abebaw, Kassie (PhD)
    The aim this study is to examine three bank specific and three macroeconomic determinants of nonperforming loans proposed by the literature in the Ethiopian banking system for the period 2005 to 2013 using Arellano Bond (1991) first difference GMM estimation method. The three bank specific factors are ROA, capital to asset ratio and loan to deposit ratio and the three macroeconomic factors are real GDP growth, unemployment and inflation. The estimation result indicates that the coefficient of lagged dependent variable was between 0 and 1 as expected. Profitability and capital adequacy both showed significant (p<0.05) negative effect on NPL. Loan growth has also shown significantly (P<0.05) and positively effect on NPL. However the three macroeconomic factors have insignificant (p<0.1) effect on NPLs. The model was tested for over identification problem by Sargan test as recommended by Aellano Bond (1991). Further two autocorrelation test, AR (1) and AR (2) were conducted to test the assumption of no autocorrelations in the error term. The test result rejected the null hypotheses confirm the validity model assumptions. The results of the research benefit specifically bank managers and financial sector regulatory body.
  • No Thumbnail Available
    Item
    An Empirical Analysis of the Determinants of Trade Balance in Ethiopia (1980-2017)
    (2019-03) Misganaw, Chanyalew; Abebaw, Kassie (PhD)
    The main objective of this study is to analyze the determinants of trade balance in Ethiopia during the specified period (1980-2017). Based on review of theoretical and empirical literature, five variables (GDP, GCE, HCE, ER and MS) were identified as general determinants of trade balance in Ethiopia. Moreover, variables are based on elasticity, monetary and absorption theories of trade balance. The study implements ARDL bounds test and error correction model to analyze a time series data from 1980-2017, collected from national bank, World Bank development indicators and IFS. The finding of this study shows that real exchange rate and gross domestic product have positive and significant effect on trade balance while money supply has negative and significant effect on trade balance in long run. Again, long run ARDL model reveals government consumption expenditure and household consumption expenditure have no effect on trade balance. The error correction model of the short-run regression shows that real exchange rate and government consumption expenditure have positive and significant effect on the speed of adjustment of the long-run trend of trade balance. The estimated short run model revealed that the trade balance converges to its equilibrium value. The coefficient of the error term that captures the speed of adjustment towards the long run equilibrium found with the correct sign and magnitude. The speed of adjustment is -0.90, which implies that around 90% deviations from long run equilibrium are adjusted every year and the rest 10% in the coming year.
  • No Thumbnail Available
    Item
    Factors Influencing Bank Selection Decision: An Empirical Analysis on Criteria Employed by Graduating Students at Addis Ababa University
    (Addis Ababa University, 2018-12) Kedir, Eshetu; Abebaw, Kassie (PhD)
    The study features an empirical analysis on criteria employed by graduating students in Addis Ababa University towards their bank selection decision. A total of 400 graduating students of Addis Ababa University participated as a sample for the research. Primary sources of survey data were used collected through self-administered questionnaires using a non-probability convenience sampling technique. Data was analyzed using descriptive statistics, regressions processed by Statistical Package for Social Science (SPSS) version 24.0. The result showed that the convenience, Number of branch and ATM, Bank reputation, and E-Banking are found to be a significant factor for students’ bank selection decision. On the other hand, the regression model revealed that third party influence has insignificant effect on bank selection decision. The paper recommends for Bank management to be aware that, factors influencing bank selection decision differ from one segment to another. The study also recommends banks to consider more number of branch and ATM easily accessible in campus, home, and work place with extended operation hours and functional ATMs and offer electronic banking services.