Browsing by Author "Fekadu Dawit"

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    Determinants of Commercial Banks Financial Performance in Ethiopia
    (Addis Ababa University, 2016-04) Fekadu Dawit; Ponnala Venkati
    This study examines the determinants of financial performance of commercial banks in Ethiopia by using panel data of seven sample commercial banks out of eighteen commercial banks operated in Ethiopia over the period 2000-2014. Since the data is secondary in nature, the quantitative approach to research was used. Besides, the random effect model was used. Under this study, both internal and external factors were included. The internal factors used in this study include capital adequacy, Asset quality, Earning ability, liquidity management and Bank size whereas, the external factor is foreign exchange rate. Moreover, ROA, ROE and NIM were used to measure the financial performance. This study runs a redundant fixed effects test using Hausman specification test. Hence based on the result random effect model was adopted. Based on the regression result; asset quality, earning ability and bank size have a significant influence on the financial performance of Ethiopian commercial banks measured by return on asset , return on equity and net interest margin. Thus, management bodies of commercial bank should strive to strengthen the identified significant factors. Key words: financial performance, commercial banks