Browsing by Author "Birhanu, Habtamu (PhD)"

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    Credit Drivers: Empirical Study on Commercial Banks in Ethiopia
    (Addis Ababa University, 2016-06) Sibehate, Sintayehu; Birhanu, Habtamu (PhD)
    Financial Development is a cornerstone for economic growth and development. Banks in developing countries like Ethiopia play dominant role in the financial sector through playing intermediation function. Hence, increasing credit supply while also ensuring the soundness of the finical sector is key for accelerating economic activity. However, like in most African countries, bank credit in Ethiopia is low though credit to GDP is growing steadily overtime. Hence, this research investigates credit drivers of Ethiopian commercial banking sector during the period from 2002 to 2014. It was conducted based on the hypothesis that credit in Ethiopian banking industry is determined by bank, industry and macro-economic specific factors. Several theories and empirical outcomes were examined to explain the determinants of bank credit supply. The variables were selected based on both theoretical and empirical literatures. Explanatory design, quantitative research approach and secondary data were used in carrying out this research. The regression technique was used to estimate the model using the EViews 8 econometric package. The results obtained indicated that bank lending is determined by banks and industry specific factors than macroeconomic specific factors. And specifically the estimation results show that deposit volume, capital of banks, liquidity position, investment portfolio, cost of financial intermediation and market concentration have significant effect on bank lending. However, economic growth proxied by real GDP and inflation are not significant. The study recommends banks to increase deposit level, manage liquidity effectively, enhance their capital level and decrease the cost of financial intermediation. Similarly, NBE needs to enhance competition with strengthened supervision. Further studies were recommended in the areas by considering additional variables and at regional and cross country level.
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    Factors that Determines Internal Control Effectiveness in international non Governmental Organizations Working in Health sector in Addis Ababa
    (Addis Ababa University, 2016-06) Mohammed, Getu; Birhanu, Habtamu (PhD)
    NGO’S internal control effectiveness involves the capability of an organization to deliver services to its people in the most efficient manner while ensuring high quality of its services and support. The focus of the study was guided by the following objectives; to assess internal controls effectiveness in non-governmental organizations to identify the possible areas of deficiencies in the system. The study would be significant to the NGOs’ as it would give insights to them on the importance of integrating internal control effectiveness their operational efficiency. The target population of the study was all internal audit/control staff all in all 90 working in the 30 selected non-governmental organizations working in health sector using multistage sampling methodology through questionnaires. Data was collected using questionnaires distributed to those individuals. Data was analyzed using descriptive statistics and inferential statistics using SPSS results. The findings revealed that there is insignificant internal control effectiveness. Particularly, there is negative insignificant relationship between the management support and internal control, though there is insignificant positive relationship between adequate and competent internal control staff and internal control. However there is significant relationship between organizational independence and internal control effectiveness. The study recommends that internal controls should be used to support in achieving its objectives the organizations in achieving its objectives by managing independence of internal control staff and by employment of adequate and competent staff that fosters operational performance of the organizations. Key Words: Internal Control effectiveness; International Non-Governmental Organizations; Determinants of internal control Effectiveness
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    Role of Internal Control Systems on Performance of Ethiopian Shipping and Logistics Services Enterprise .
    (Addis Ababa University, 2017-01) Bekele, Rahel; Birhanu, Habtamu (PhD)
    Effective internal control system can play a very crucial role in every organization to realize organizational goals, one of which is achieving financial performance objectives. The main purpose of this study was to determine the impact of internal control systems on financial performance on Ethiopian shipping and Logistics Services Enterprises as a case study. Specific objectives include evaluating the existing internal control system in the organization and investigating the relationship between the five internal control elements and financial performance. The study used explanatory research design research design by using both descriptive and quantitative methods where primary data is collected using Likert-scale questionnaires distributed and interviews made with employees in the finance department. Secondary data was gathered from company's financial statements and publications. The dependent variable was financial performance measured in-terms of profitability and ROA. The predictors or independent variables were the five elements of internal control system, control environment, control activities, risk assessment, monitoring and information and communication. The target population was 40 employees in the finance department and census design was adopted. The study period covers 9 years 2005-2013. Effectiveness of the elements of internal control system was analyzed from the descriptive statistics result. Multiple regression analysis was done to determine the relationship and the significance level of elements of internal control system towards financial performance. The result revealed that internal control system contributed only31% variation on financial performance. The descriptive result shows there is weak internal control system in the organization. The study recommend more commitment by the management in monitoring internal control system and continue working on improving for the effectiveness of the internal control system so, the company will achieve better performance