Accounting and Finance Dissertation

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Browsing Accounting and Finance Dissertation by Author "Abebe Yitayew"

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    Assessing Product Differentiation and Its Implication on Bank Performance; The Case of Selected Commercial Banks In Ethiopia
    (AAU, 2024-01-15) Andualem Assefa; Abebe Yitayew
    This study aims to assess the practices of product differentiation and it’s implication on financial performance of commercial banks in Ethiopia. The researcher used explanatory research design complemented with a qualitative research approach. Using simple random sampling technique 74 samples were selected among 93 employees from commercial banks of Ethiopia located in Addis Ababa. The data were analyzed using basic descriptive statistics including frequencies,percentages, mean, and cross-tabs. The findings of the study indicate that the banks have opened several branches in various parts of the country which have led to increased customers and this in turn has improved the proximity and customer convenience. It was also evident that the banks have diversified their operations by offering differentiated products and services associated with loans and deposits. It was also made evident, as a result of differentiation, the banks have attained, high profitability level, and favorable liquidity level to help them meet their short term obligations and also it creates to manage assets and liabilities too. Furthermore, the study found that there is a positive relationship between product differentiation, in terms of product innovation, product design quality and uniqueness with the financial performance of the selected banks. This research concludes that in order to improve the banks business performance, banks should apply new product/ service that their competitors desperately needs. Beside the aforementioned variable that, management quality plays a vital role in maintaining and boosts business performance of Ethiopian banks. Finally, this comprehensive evidence will help policy makers to give attention to product differential and it’s implication on the banks financial performance to gain competitive advantage over the rivals and has paramount importance for the clients to address and exceed their expectations too
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    Assessment of Tax Audit Practice in case of Addis Ababa Revenue Bureau Evidence from Merkato No.2 Branch Office
    (A.A.U, 2023-06-04) Bethlehem Negussie; Abebe Yitayew
    The main objective of this study was to assess tax audit practice in case of Addis Ababa Revenue Bureau Evidence from Merkato No.2 Branch Office. To achieve the stated objective data were collected from both primary and secondary source, mixed research design approach was used. Primary data were collected mainly through questionnaire which were distribute 203 samples from 431 total from Addis Ababa Revenue Bureau Evidence from Merkato No.2 Branch Office. The collected data were analysed using descriptive statistical tools to assess tax audit practice. The results of this study revealed that tax audit practice of the office has good in auditor independence, tax audit preparation, tax audit effectiveness, tax audit implementation and engagement performance those affect tax audit practice. Based on the result of the study it is recommended that the concerned authority there should be strong commitments support the tax audit to operate independently, the audit methodology and tools applied to the audit should be well structured so as to be actively involved in audit process and to get appropriate audit evidence effectively and efficiently. To make effective tax audit the office should identify employees’ gap and conduct continues training program so as to update auditors’ knowledge and to obtain better tax audit practice. The auditor should obtain the acknowledgement and agreement of management and, where appropriate, those charged with governance that they understand their responsibilities
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    Assessment of the Effectiveness of the Internal Control System in the Prevention of Fraud in Dashen Bank S.C
    (A.A.U, 2024-09-12) Daniel Beyene; Abebe Yitayew
    The study assessed the effectiveness of the internal control system in preventing fraud at Dashen Bank. A descriptive research design was utilized, incorporating both qualitative and quantitative approaches. The research involved 193 employees working in various work units within the bank, including the risk and compliance office, internal audit offices, and branches located in Addis Ababa. The study found that internal control techniques implemented by the bank have been effective in preventing fraud. However, some gaps were identified in the bank's risk identification, assessment of fraud and other risks, and systems for responding to risks effectively. There were also deficiencies in responsibility rotation, employee recruitment and retention, communication with external parties, and the use of transaction monitoring technology. The study recommended that Dashen Bank enhance its risk identification strategy, improve risk assessment processes, adopt advanced technological solutions, establish rotation procedures, enhance recruitment practices, offer targeted development opportunities, prioritize employee retention, promote diversity and inclusion, and create a feedback-rich environment. By enhancing internal control systems and incorporating technological solutions, banks can effectively prevent fraud, build customer trust, and ensure stakeholder confidence. Key Words: Internal Control, Fraud Prevention and Internal Control Components
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    Assessment of the Effectiveness of the Internal Control System in the Prevention of Fraud in Dashen Bank S.C
    (A.A.U, 2024-02-02) Daniel Beyene; Abebe Yitayew; Dayito Alemu
    The study assessed the effectiveness of the internal control system in preventing fraud at Dashen Bank. A descriptive research design was utilized, incorporating both qualitative and quantitative approaches. The research involved 193 employees working in various work units within the bank, including the risk and compliance office, internal audit offices, and branches located in Addis Ababa. The study found that internal control techniques implemented by the bank have been effective in preventing fraud. However, some gaps were identified in the bank's risk identification, assessment of fraud and other risks, and systems for responding to risks effectively. There were also deficiencies in responsibility rotation, employee recruitment and retention, communication with external parties, and the use of transaction monitoring technology. The study recommended that Dashen Bank enhance its risk identification strategy, improve risk assessment processes, adopt advanced technological solutions, establish rotation procedures, enhance recruitment practices, offer targeted development opportunities, prioritize employee retention, promote diversity and inclusion, and create a feedback-rich environment. By enhancing internal control systems and incorporating technological solutions, banks can effectively prevent fraud, build customer trust, and ensure stakeholder confidence. Key Words: Internal Control, Fraud Prevention and Internal Control Components
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    Assessment of the Effectiveness of the Internal Control System in the Prevention of Fraud in Dashen Bank S.C.
    (AAU, 2024-02-01) Daniel Beyene; Abebe Yitayew
    The study assessed the effectiveness of the internal control system in preventing fraud at Dashen Bank. A descriptive research design was utilized, incorporating both qualitative and quantitative approaches. The research involved 193 employees working in various work units within the bank, including the risk and compliance office, internal audit offices, and branches located in Addis Ababa. The study found that internal control techniques implemented by the bank have been effective in preventing fraud. However, some gaps were identified in the bank's risk identification, assessment of fraud and other risks, and systems for responding to risks effectively. There were also deficiencies in responsibility rotation, employee recruitment and retention, communication with external parties, and the use of transaction monitoring technology. The study recommended that Dashen Bank enhance its risk identification strategy, improve risk assessment processes, adopt advanced technological solutions, establish rotation procedures, enhance recruitment practices, offer targeted development opportunities, prioritize employee retention, promote diversity and inclusion, and create a feedback-rich environment. By enhancing internal control systems and incorporating technological solutions, banks can effectively prevent fraud, build customer trust, and ensure stakeholder confidence. Key Words: Internal Control, Fraud Prevention and Internal Control Component
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    Evaluating the Effectiveness of Credit Risk Management Practices in Ethiopian Private Banks: A Case Study on Selected Banks
    (AAU, 2025-09-23) Yitbarek Esubalew; Abebe Yitayew
    This study aims to evaluate the effectiveness of credit risk management (CRM) practices in Ethiopian private commercial banks, using the Basel II and Basel III frameworks as the theoretical foundation. CRM effectiveness refers to how well a bank’s risk management strategies specifically risk identification, risk measurement and analysis, risk mitigation, and risk monitoring prevent loan defaults, minimize financial loss, and maintain a sound credit portfolio. The Basel Accords, particularly the core principles outlined in Basel II and the enhanced regulatory standards in Basel III, provide a comprehensive structure for assessing these practices. The study employed a descriptive research design and a mixed-methods approach, incorporating both quantitative (survey) and qualitative (document analysis) methods. A sample of 164 participants was selected from a total population of 276 staff members working in credit and credit risk assessment departments of five major Ethiopian private commercial banks. Systematic and purposive sampling techniques were used to ensure relevance and representativeness. Data were collected through structured questionnaires and supplemented by secondary data from annual reports. Key performance indicators such as non-performing loan (NPL) ratios and loan loss provision (LLP) ratios were used to objectively assess CRM effectiveness. Data analysis was conducted using both descriptive and inferential statistics with the aid of SPSS version 26. The findings revealed that all four core components of CRM were highly implemented across the selected banks. Regression analysis showed that these practices have a significant positive effect on overall CRM effectiveness. The study concludes that aligning internal CRM practices with internationally recognized frameworks like Basel II and III enhances financial stability, credit performance, and risk governance. It recommends that Ethiopian private banks continuously assess and improve their CRM strategies in line with Basel principles and real-world credit performance indicators
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    Influence of Capital Structure on Financial Performance of Manufacturing Companies In Ethiopia
    (Addis Ababa University, 2026-01-01) Tsegereda Tefera; Abebe Yitayew
    This study focuses on how capital structure affect the financial performance of manufacturing firms in Ethiopia. The study applied explanatory research design with quantitative approach. It examines how various capital structure variable such as, total debt-to-total assets ratio (TDTA), long-term debt-to-equity ratio (LTDTE), and short-term debt-to-equity ratio (STDTE) impact key performance indicators such as Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). The study also considers firm size (SZ) as a control variable. It uses secondary panel data from the annual audited financial statements of 10 (Ten) manufacturing companies in Ethiopia over the period of five years from 2020 to 2024 G.C. and non-probability purposive sampling method were used to select the samples. Most of the data were collected from Ministry of Revenue Large Taxpayers Office. The study used multiple regression models to test the effect of capital structure on financial performance by applying Ordinary least square (OLS) regression and using SPSS software Version 23 for data analysis. The findings disclose that, total debt to total assets (TDTA) and long-term debt to equity (LTDTE), shows a statistically significant negative effect on return on assets (ROA) and net profit margin (NPM). Conversely,short-term debt to equity (STDTE) shows a positive but statistically insignificant impact on ROA and NPM. Firm size (SZ) demonstrates a statistically significant negative effect on ROA but an insignificant negative effect on NPM. Regarding return on equity (ROE), variables such as LTDTE, STDTE, and SZ have an insignificant negative impact, while TDTA shows a statistically significant positive effect. Therefore, the findings show that optimizing capital structure requires more understanding of how different types of debt influence various aspects of financial performance, emphasizing the importance of strategic decision-making in financing choices.Based on these insights, the study recommended that financial managers within the manufacturing sector carefully manage their debt levels, aiming to reduce excessive leverage to enhance profitability. Key word: - Capital structure, Financial Performance, Manufacturing companies, ROA, ROE,NPM, TDTA, TDTE, STDTE, Firm Size