Browsing by Author "Alemu Dakito"

Now showing 1 - 6 of 6
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    Assessment Of Leadership Gaps and Challenges In Adoption Of Interest Free Banking (Ifb) In Ethiopia
    (Addis Ababa University, 2021-08) Wolela Abdulkadir; Alemu Dakito
    As part of IFB fast Global growth, leaders in Ethiopia are responsible to remain competent to run Sharia-compliant products irrespective religion. In this regard the research aimed at assessment of leadership gaps and challenges in the implementation of IFB in Ethiopia. An exploratory research design is applied, with mixed research approach. Census sample strategy is utilized to choose banks, with the purposeful exclusion of banks that do not provide IFB services. Sample units of 75 managers were conveniently drawn, and the content of the responses and documents was thoroughly analyzed quantitatively and qualitatively, SPSS is used to tabularize the data summary and presentation. The analyses and interpretation yielded perception, knowledge, legal, and project management gaps and challenges: attention given by leaders to IFB found very minimal, leaders and employee lacks IFB personality and appearance, it happens in some cases due to fear of the unknown tailored to the IFB. Sustainable training and development programs are not placed properly, there lacks adoption of appropriate technology. The legal framework of IFB viewed through the lens of a typical conventional context. Leadership along the hierarchy should cultivate personality that favor to the success of IFB, perception should be surveyed to rectify and leaders should involve to IFB decision making to create IFB-friendly atmosphere that reflects its values. It requires to craft rigorous and diverse training program and public awareness. Establish a clear IFB institutional structure with appropriate technology adoption. NBE should look for ways to adopt internationally accepted IFB standards, reinforce and revisiting the current NBE directives and legal framework
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    Assessment of Non-performing loan in Dashen Bank S.C
    (Addis Ababa University, 2020-02) Gezachew Ermias; Alemu Dakito
    The main goal of commercial banks is to operate profitably in order to maintain its stability and improve growth and sustainability. The problem of non-performing loans is seen as a burden on any country’s economy or financial institution and putting downward pressure on its growth. This is because the role of banks as financial intermediaries does not function properly due to the problem of non-performing loans (NPLs). In view of that, this study has been tried to examine the factors affecting non-performing loans in Dashen bank S.C. The research methodology adopted descriptive research design based on both open ended and close ended structured questionnaires to gain in-depth understanding. A sample size of 110 respondents was used and Simple random sampling method was adopted for the study. The findings indicated that poor risk assessment and poor monitoring/follow-up as the major reasons for the occurrence of loan default/ non-performing loan followed credit culture /orientation and interest rate. The study suggests that much attention should be given to proper credit assessment and risk management techniques, introducing and implementation of an aggressive debt collection policy, and strong loan follow-ups. Besides, the bank should exert additional effort to better manage its NPL position
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    Assessment on Determinants of Internal Audit Effectiveness in Business Leadership the Case of Commercial Bank of Ethiopia
    (Addis Ababa University, 2021-08) Yisehak Yirgalem; Alemu Dakito
    Internal audit is used to strengthen the corporate governance of the organization and it is also a branch of financial management. Both corporate governance and financial management are the main aspects of business leadership. An effective internal audit needs effective leadership. The objective of this study was to assess the determinant factors of internal audit effectiveness in business leadership in the case of the commercial bank of Ethiopia.The study is based on questionnaires and sample respondents from the Commercial Bank of Ethiopia's internal audit section. The data was collected by distributing 108 five-point Likert scale self-administrated questionnaires to the respondents. The data is analyzed using SPSS version 20 and the results are presented by using descriptive statistics, frequencies, correlation, and linear regression analysis. The study included four independent variables. The regression result of the model shows that management support, organizational independence, and management perception affect internal audit effectiveness positively. whereas the competence of the internal audit affects negatively, but significantly, the internal audit effectiveness. Based on the findings, the study concludes and recommends that the internal audit sector of CBE emphasizes internal audit function effectiveness by studying the mentioned variables and giving more attention to the development of internal auditors through continuous training and by arranging professional qualification opportunities for its staff to enhance the level of internal audit effectiveness and, as a result, strengthen the corporate governance structure of CBE
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    Effect of Leadership Styles on Employee Performance: The Case of Commercial Bank of Ethiopia (CBE)
    (Addis Ababa University, 2021-08) Aregawi Gebrehiwet; Alemu Dakito
    The study targeted to access the impact of leadership styles on employee performance at commercial bank of Ethiopia. Leadership styles (transformational, transformational, laissez-faire and authoritative) practices and its effect on employee performance was the main objectives. Random sampling technique used to select research participants. 149 structured questionnaires were distributed and 140 usable responses were collected. Multifactor leadership questionnaire (MLQ form 5X) was used to measure leadership style practices and customer satisfaction, team work and achieve organizational goal was used to measure employee performance. Descriptive statistics and scale analysis were used to analyze data using SPSS .23 and Microsoft Excel 2016. Pearson correlation analysis and regression analysis were used to predict the relationship between leadership styles and employee performance. The finding shows that, transactional leadership is most practiced leadership style followed by authoritative, transformational and laissez-faire leadership respectively. Transactional, transformational and laissez-faire found to be positively correlated with employee performance but authoritative leadership found negatively correlated. The results recommend that leaders in CBE must practice transactional and transformational leadership behaviors but not authoritative leadership behavior
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    Empirical Analysis of the Contribution of Vat for Economic Development and Social Spending in Ethiopia
    (A.A.U, 2011-06) Alemu Dakito; P. Ulaganathan
    This paper discussed some recent critical literature on value-added tax (VAT) in Ethiopia relating to its contributions for economic development and its impact on the Social Spending in Ethiopia. The study employed the tools of quantitative empirical analysis technique to evaluate the contribution of VAT for the development of Ethiopia economy. The generic central objective is to examine the contribution of VAT for the development of Ethiopia economy and its impact on social spending, equity. The tools of empirical analysis used are multiple regression models as abstractions of the respective sectors considered in the study and also descriptive statistics. The study considered a vector of economic Development indicators as dependent variables and regressed each on VAT revenue proceeds and other income (loan, donation, grant, taxes excluding VAT revenue, and others) of Ethiopia State for the study period (1 995-2002 E.C or 2003 /04 - 2009110 G.C). The state economy is dis aggregated into five strategic economic sectors in the development process, and multiple regression models specified to enhance isolated analysis of each sector. Development aspects that are considered include infrastructural evelopment, education sector development, agricultural and natural resource development, health sector Development and other development sectors. Moreover, in order to make clear decision and summarize the study, the summation of all capital expenditure on the respective sectors were taken and regressed. The analysis showed that, except education sector, V AT revenue contributed positively for the development of the respective sectors. On the aggregate (model VI), the analysis showed that VAT revenue had a considerable contribution for the development of the economy during the period under study. However, the contributions are statistically significant only to health and agricultural and natural resource development sectors. Therefore, it can be said that, the V AT tax revenue was unable to neutralize the progressivity of V AT tax levy in Ethiopia because its unsystematic exemptions, tax structure, and tax system. Thus, the study concludes that various sectors of the economy of Ethiopia are yet to benefit significantly from V A T revenue expenditure of the state government Consequently, the paper calls for equity in sect oral spending of VAT proceeds in Ethiopia State in order to ensure balanced development and sustainability of the emerging mega city status of the state.
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    Empirical Analysis of the Contribution of Vat for Economic Development and Social Spending in Ethiopia
    (Addis Ababa University, 2011-06) Alemu Dakito
    This paper discussed some recent critical literature on value-added tax (VAT) in Ethiopia relating to its contributions for economic development and its impact on the Social Spending in Ethiopia. The study employed the tools of quantitative empirical analysis technique to evaluate the contribution of VAT for the development of Ethiopia economy. The generic central objective is to examine the contribution of VAT for the development of Ethiopia economy and its impact on social spending, equity. The tools of empirical analysis used are multiple regression models as abstractions of the respective sectors considered in the study and also descriptive statistics. The study considered a vector of economic development indicators as dependent variables and regressed each on VAT revenue proceeds and other income (loan, donation, grant, taxes excluding VAT revenue, and others) of Ethiopia State for the study period (1995-2002 E.C. or 2003/04 – 2009/10 G.C.). The state economy is disaggregated into five strategic economic sectors in the development process, and multiple regression models specified to enhance isolated analysis of each sector. Development aspects that are considered development, education sector development, agricultural include infrastructural and natural resource development, health sector development and other development sectors. Moreover, in order to make clear decision and summarize the study, the summation of all capital expenditure on the respective sectors were taken and regressed. The analysis showed that, except education sector, VAT revenue contributed positively for the development of the respective sectors. On the aggregate (model VI), the analysis showed that VAT revenue had a considerable contribution for t h e development of the economy during the period under study. However, the contributions are statistically significant only to health and agricultural and natural resource development sectors. Therefore, it can be said that, the VAT tax revenue was unable to neutralize the regressivity of VAT tax levy in Ethiopia because its unsystematic exemptions, tax structure, and tax system. Thus, the study concludes that various sectors of the economy of Ethiopia are yet to benefit significantly from VAT revenue expenditure of the state government. Consequently, the paper calls for equity in sectoral spending of VAT proceeds in Ethiopia State in order to ensure balanced development and sustainability of the emerging mega city status of the state