Corporate Finance

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https://etd.aau.edu.et/handle/123456789/6324

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Browsing Corporate Finance by Author "Tenkire Seyfu (PhD)"

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    Assessment of Risk Management Practice in Ethiopian Commercial Banks
    (Addis Ababa University, 2024-02) Segni Teshome; Tenkire Seyfu (PhD)
    The purpose of this research is to “assess the risk management practices of Ethiopian commercial banks. The study is used descriptive survey method and applies a mixed method research strategy for each stratify as representative sample by taking the quantitative method as major component while the qualitative method plays a supplementary role. Data was collected from purposely selected commercial banks permanent staff and analysis was carried out using descriptive statistics supporting by SPSS v 23. Based on the descriptive and analytical analyses results of the questionnaire data, Likewise, the overall usefulness of the risk management practices in selected banks found well prefund by the managing risk based on the empirical data analysis. This thesis unveils higher mean of agreement between the managing market risk and the risk management practices. These results indicate that the managing liquidity risk is also another valuable aspect to improve the usefulness of the risk management practices of selected commercial banks. Furthermore, the descriptive statistics result stated that managing liquidity risk with the risk management practices has been found and endorses that it is important for the management to give more consideration to deal with the liquidity risk in order to bring improvement in the risk management practices of all banks. This study further confirms the role of managing operational risk in the whole banking risk management approach and has found moderates of implementations of the managing operational risk and the risk management practices in selected commercial banks is strongly minimized its risk. The main conclusions of this paper are selected banks should develop a common understanding about the strategy, policy and procedures across the bank and under no circumstance should the bank violate the limit set by NBE and finally prepare training for risk related staffs to manage risk effectively and efficiently. Therefore, the banking sector and other related sectors should be introduced with the necessary work to be completed on this subject, nonetheless by making a start with the determination of the road maps and national initiatives. Key words: Risk Management Practice, Basel principles, selected commercial Banks,
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    The Role of Emerging Capital Market in Capital Allocation: The Case of Ethioipian Capital Market
    (Addis Ababa University, 2024-03) Denekew Aderaw; Tenkire Seyfu (PhD)
    One of the remarkable phenomena of the 21st century is the globalization of both factor and product markets, which has significantly transformed economies worldwide. This globalization has created a myriad of opportunities, particularly for developing countries, by providing them with greater access to a diverse array of products and services from developed nations. For these emerging economies, this access means not only the ability to import advanced technologies and high-quality goods but also the potential to integrate into global supply chains. Such integration can spur local industries, enhance productivity, and ultimately contribute to economic growth. Conversely, developed countries also reap substantial benefits from this interconnectedness. They gain access to a wealth of opportunities for diversification, allowing them to explore new markets and reduce dependency on their domestic economies. Additionally, globalization enables these nations to tap into inexpensive labor pools in developing regions, which can significantly lower production costs. Moreover, the availability of untouched natural resources in various parts of the world presents an avenue for developed countries to secure essential materials that are critical for their industries. Lastly, the presence of high purchasing power in certain global markets allows developed nations to expand their consumer base, driving further economic growth and innovation. The establishment of deep, liquid, and well- regulated capital markets are instrumental in financing the economy and are the foundation for thriving private sector, a key driver of jobs and growth. The study endeavors to investigate the role of the capital market that helps to ensure the financial systems efficiency, stability, risk management, preventing costly crises, and helping channel savings toward capital that is essential for economic development and poverty reduction. The paper utilized financial development, trading volume, liquidity, information disclosure as a proxy measure of capital market performance. It also used profitability, shareholders wealth creation, and long- term business sustainability to measure capital allocation efficiency. Key words: Capital allocation; Capital Market authority; Market efficiency.