Browsing by Author "Getachew Molla"

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    Effects of Political Instability on Commercial Bank’s Performance in the Case of Selected Sub-Saharanafrica countries
    (A.A.U, 2025-01-20) Getachew Molla; Abdurezack Hussein (PhD)
    This paper evaluates the effects of political instability on commericial bank performance in case of selected sub-saharan African countries for the period 2016-2023. In order to test the proposed relationship a sample of under listed top three banks at the each countries was utilized. The study employed secondary data collected from annual audited financial report for each banks and world bank. In addition, macro economic variables including political instability indicators was gathered through world development indicators databases. The study was used fixed effect panel model to accomplish the proposed objectives. Diagnostic tests such as heteroskedasticity, cross sectional independence, serial correlation and multicollinearity test was performed before employing FE model. The result of fixed effect model indicate that ROA is significantly and negatively affected by political instability during the period of study, this mean there is a posetive relationship between political stability and bank performance. Internal determinants of commercial banks are very crucial and singnificant. Loan to deposit volume, bank’s size, and deposit volume, have a positive and significant impact on bank’s performance, where as non-performing loan have a negative and significant effect on bank performance. However, macroeconomic variable are insignificant. The study contributes knowledge in the field of political instability and bank profitablity for sub-Saharan African countries and all africa. As a result, this paper will provide a significant enhancement to the theoretical literature, the industry,and policymakers.