Browsing by Author "Araya Getachew"

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    A Study of Financial Performance of Private Banks; Evidence from the Case of Selected Private Banks in Ethiopia
    (A.A.U, 2023-07-08) Araya Getachew; Demeke Chimdessa
    Evaluating the technical and operational efficiency of banks is a key consideration to assess the performance of banks. Besides making sure optimum level of capital, achieving enough liquidity and allowing appropriate expense management are the key determinant of financial performance of banks. In various studies different methods are applied to evaluate banks’ performance. The most common method of financial performance measurement is based on balance sheet and income statement analysis. The main purpose of the study at hand is to evaluate the financial performance of the selected dominant private Banks in the Ethiopian financial market. The study further provided evidence of how the dominant private bank has been financially performing over the course of 10-yearperiod. Audited annual reports from online resource of a total of three dominant private banks covering the year 2013 to 2022 were used in the study. This study applies analytical tools by using ratio analysis and panel data using regression equation based on audited financial statements. The research found out that according to financial ratio analysis tools Awash bank showed a highest performance in the ratios for the period whereas Dashen bank performed better than Abyssinian bank during the period. Furthermore, on both panel fixed model estimations of log of return on asset and Log of return on equity, Liquidity Management and Management efficiency in log form are explanatory variables that are major determinants.
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    Analysis of Determinants of the Use of Online Trading on the Ethiopian Commodity Exchange Perceived Operational Practice
    (Addis Ababa University, 2016-06) Araya Getachew; Afewerk Fesseha
    The objective of this study was toanalyse the determinants of the use of the online trading on ECX perceived operational practice. ECX had learnt that the capacity of that the existing central trading floor restricts the direct participation of large number of market actors located at the remote parts of the country and this resulted in- high transaction costs that prohibit to some actors, more volatile prices, and higher risk of market collusion. The existing open outcry trading system at the headquarters also restricts the market expansion potential of the ECX and lack of efficiency and effectiveness of the day to day ECX operation. Having noted the weak side of the existing system, ECX has implemented an integrated online trading system that has been believed to improve the level of overall ECX perceived operational practice. This study used case study method due to its convenience and economic of use. The study was included 112 respondents of which composed of 86 Male and 26 Female.Structured self-administered questionnaires used to collect data from participants and Nominal data and ordinal data were collected and analysed. Descriptive analysis, Correlation and standard multiple regression analysis were used to analyze data and examine the relationship. The correlation analysis illustrated statistically significant Strong Positive relation between E-trading (as measured by the Trust, Attitude, Perceived benefit and perceived risk) and ECX perceived operation practice (as measured by constructs of price discovery scale, market expansion scale, access to market scale , avoidance of collusion scale and ECX Operation scale).A standard multiple regression were carried out to examine the prediction extent of four predictors of the Online trading (Perceived benefit, Perceived ease of use, Trust and Attitude) on ECX operational variables and the result showed that Among the four variables, Perceived Benefit (Beta=.256, P<.05), Trust (Beta=.298; P<.05) and Attitude (Beta=.252; P<.05) are making statistically significant unique contribution to explaining the ECX perceived operational practice, when the variance explained by all other variables in the model is controlled for.The model was a good fit for the data (F=25.885, p<.0005). In conclusion, the correlation analysis proved Direct strong positive correlation between the online trading constructs and ECX perceived operational practice and the Regression analysis predicted the extent that the adaption of online trading has significant effect on ECX operational practices.This study confirmed empirically that the adaption of online trading has an impact on ECX operational practice and hence, it is recommended to expand the existing platform to regional level by constructing remote training center that are equipped with online trade platform so that all stakeholders can access the platform and as many products as possible to be exchanged via the exchange. Key words: Ethiopia Commodity Exchange, Market Expansion, Online Trading, Organizational Performance, Price Discovery