Accounting and Finance Dissertation

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Browsing Accounting and Finance Dissertation by Author "Abebe Yitayew (PhD)"

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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 (PhD)
    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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    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 (PhD)
    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