Browsing by Author "Hagos, Alem (PhD)"

Now showing 1 - 11 of 11
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    Assessment of ERP Project Benefits and Barriers in Post Implementation Stage: The Case of Ethio Telecom Case Study
    (Addis Ababa University, 2017-02) Jemal, Abdi; Hagos, Alem (PhD)
    In recent years, most developing countries companies implement integrated software to create smooth inter-organization integration, get competitive context of business environment, hold customer satisfaction, produce real time report, provide user satisfaction as operating the system, and getting output from the system. ERP is one of complex information systems that integrate the data of all business areas within the organization. Many researcher identifies varies factors which contribute for the ERP implementation and post implementation phase failure. The purpose of this study would be First, to assess the potential benefit and barriers that can affect the successful exploitation of ERP system in Ethiopian company. Second, to list which categories of benefits and barriers require more attention to maintain success at post implementation phase? A case study designed with quantitative method, Likert type data collected from 295 properly sampled participants and descriptive statistic were used to analyze each factors. The results found all benefit and except there barriers factors the rest barriers given consideration by the respondent but some were underestimated compared to relevant literature. The result also shows the benefits realized and barriers faced composed of all categories. Therefore, as the previous relevant study this research also concludes that both benefits and barriers are significant at post implementation stage. Key words: ERP, user satisfaction, benefit, risk and barriers
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    Assessment of Loan Repayment Determinant Factors in Microfinance Institutions: The Cases of ADCSI, SFPI And GASHA MFIS
    (Addis Ababa University, 2016-06) Sinishaw, Dereje; Hagos, Alem (PhD)
    The study had looked at the potential of the country regarding loan repayment determinant factors by taking three MFIs as evidence. The study had used both primary and secondary data. The primary data is collected by a means of interview and questionnaire. The secondary data for the study were the empirical literatures of dependent and independent variables. The study had found variables that can affect the loan repayment activities of the three MFIs SFPI, ADCSI, and Gasha. One variable is used with the dependent variable that is the loan repayment of the MFIs. The data for this variable was collected from these three MFIs with questioners and interview. The correlation model is constructed for the dependent variable and the seventeen independent variables. Hypothesis testing is performed using spear man correlation coefficient method because of the independent variables are non-parametric variables. As a result of the hypothesis testing it was found that all the seventeen variables can affect loan repayment of the MFIs. All these variables had positive and significant effect on loan repayment performance. Finally the study had recommended what should be done to improve the loan repayment activities. Key words: Micro Finance Institution, Loan, repayment
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    Corporate Governance and its Effect on Financial Performance of the Ethiopian Private Commercial Banks
    (Addis Ababa University, 2017-02) Harun, Abdurazak; Hagos, Alem (PhD)
    The paper takes a look at the effects of corporate governance on the financial performance of private commercial banks in Ethiopia. This exploratory study seeks to analyze the effect of different corporate governance mechanisms, particularly board gender diversity, directors’ educational qualification, variety number of internal board sub-committee, meeting frequency of board, board ownership, regulations of legal reserve and liquidity and depositor influence, on the financial performance of 8 privately owned commercial banks of Ethiopia. And the study also controls the effect of private commercial banks size. The financial performance measure was Return on Asset (ROA). In order to achieve this objective, the study uses mixed research approach that is by adopting quantitative method research approach by combining documentary analysis of secondary data which was collected from the National Bank of Ethiopia (NBE). And capturing and administrating primary data using structured questionnaire which were completed by board secretary and delegated staffs as he/she is in a better position to comment on corporate governance affairs. Panel data covering 11 year period from 2005-2015 was analyzed and regression result with recommendation are displayed for the selected 8private commercial banks. The cross section fixed effect technique has been applied to find out the most significant variables from considered corporate governance variables. The findings indicated that board gender diversity and liquidity ratio does not have a significant effect on the financial performance of selected private commercial banks.Board members educational qualification is positively but insignificantly related with the financial performance.Similarly, variety number of internal board sub-committee, meeting frequency of board, and board ownership had statistically insignificant positive effect on private commercial bank financial performance. In additionprivate commercialbank size had statistically significant positive effect on private commercialbank financial performance. Legal reserve ratio and depositor influencehave negative significanceat 5% level and positive significanceat 10% level effect on the financial performance of selected private commercial banks. Keywords: Banking Sector, Private Commercial Bank Financial Performance, Corporate Governance Mechanisms.
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    Determinants of Dividend Policy in Ethiopian Private Banks
    (Addis Ababa University, 2017-01) Tesfaye, Tadele; Hagos, Alem (PhD)
    The dividend policy is one of the most debatable topics within corporate finance and some academics have called the company’s dividend policy unsolved puzzle. Even though a lot of researches regarding dividends have been conducted, there is no uniform answer to the question: what are the determinants of the companies’ dividend policy? Therefore,the researcher of this study decided to conduct a study regarding the determinants of dividend policy of Ethiopian private banks using bank specific factors and macro variables. The main objective of this study was to identify the determinants of dividend policy of Ethiopian private banks. To answer the objective of the study, explanatory and descriptive study used&the data covered the period from 2000-2015 for the sample of sixEthiopian private banks and used secondary and primary data. Both bank specific and macroeconomic variables were analyzed by employing the balanced panel fixed effect regression model andthe study used dividend policy as a dependent variable and seven independent variables; they are profit, leverage, liquidity, retained earnings, loan loss provision, lagged dividend payout, economic growth rate and inflation rate. The result of the study revealed that profit, leverage, and lagged dividend payment have positive and statistically significant impacts on dividend policy of Ethiopian private banks while retained earnings, loan loss provision, inflation have negative and statistically significant impact on dividend policy of Ethiopian private banks whereas liquidity and economic growth rate were found to be statistically insignificant and have no any impact on dividend policy of Ethiopian private banks. Keywords: Dividend policy, Ethiopian private banks, bank specific factors, macro variables
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    Determinants of Liquidity of Commercial Banks of Ethiopia
    (Addis Ababa University, 2016-01) Fekadu, Alemayehu; Hagos, Alem (PhD)
    The purpose of this research is to identify the factors significant to explain Ethiopian commercial Banks liquidity. This study has categorized the independent factors into bank specific factors and macroeconomic factors. The bank specific factors include Bank Size, Capital Adequacy, Profitability, Non-Performing Loans, and Loan Growth while the macroeconomic factors include Gross Domestic Product, General Inflation and National bank Bill. The panel data was used for the sample of eight commercial banks in Ethiopia from 2002 to 2013 year and estimated using Fixed Effect Model(FEM), data was present by using descriptive statistics and the balanced correlation and regression analysis for liquidity ratios was conducted. The findings of the study show that capital strength and profitability had statistically significant and positive relationship with banks’ liquidity. On the other hand, loan growth and national bank bill had a negative and statistically significant relationship with banks’ liquidity. However, the relationship for inflation, non-performing loans, bank size and gross domestic product were found to be statistically insignificant. The study suggests banks must have increase their outreach to tens of millions of people by openings up more and more branches every year through country, and have significantly improve their banking service by introducing new product and services like Agent banking, Mobile banking and Internet Banking through the application of modern technology. Moreover, banks in Ethiopia should not only be concerned about internal structures and policies, but they must consider both the government regulation and the macroeconomic environment together in developing strategies to improve the liquidity position of the banks. Key words: Ethiopian commercial banks, determinants of liquidity, liquidity ratios, liquidity risk, panel data regression analysis.
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    Do Firms’ Size, Owned Capital and Change in Retained Earnings Affect Performance? Evidence from Ethiopian Private Companies
    (Addis Ababa University, 2016-05) Haile, Fesseha; Hagos, Alem (PhD)
    This research studies the effect of firm size and owned capital structure such as equity to total assets, cash to current liabilities, change in the retained earnings, asset turnover and GDP on the business’ performance of 10 selected manufacturing companies in Addis Ababa region, Ethiopia during the years 2011 to 2015. The study used Return on Equity (ROE) as dependant performance variable whereas, change in the retained earnings, firm size, equity to total assets, cash to current liabilities, asset turnover ratio and GDP are used as independent variables. The panel data random effect estimation model was applied for the data analysis through EViews 8.1 statistical package. In this study it was observed that that R-squared= 48.4% of the firms’ performance that is ROE in the period under study was explained by these explanatory variables while the rest 51.6 % of the dependant variable is explained by other factors.Change in the retained earnings has strong significant relationship as (p-value= 0.0020) and had positive relation with the performance-ROE because its p-value is less than 5%. Firm size had insignificant relationship with (p-value =0.1671), had positive relation with performance- ROE; since it’s P-value is greater than 5%. As a result the Null hypothesis: Ceteris paribus, there is no significant association between firm size and firm performance in Ethiopia is to be accepted. Equity as described owned capital in this study shows a strong relationship with the firm’s performance when it is measured as equity to total assets ratio since the (p-value= 0.0074) that is less than 5% as the result the null hypothesis was rejected but it is positively related to ROE. Key Words: (Performance-ROE, Owned Capital, Change in the Retained Earnings, Firm Size, Panel Data).
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    The Effect of Microfinance Services on The Performance of Smes in Addis Ababa
    (A.A.U, 2021-06) Ayele, Mulugeta; Hagos, Alem (PhD)
    Microfinance institutions (MFIs) offer a range of services including loans, savings facilities, insurance, transfer payments, and even micro-pensions. The objectives of the research were to examine the effect of microfinance services on the performance of small and medium enterprises in Addis Ababa in selected sub-cities. For the study, the researcher used primary data. Because of the nature of the study, the study used an explanatory research design with a quantitative research method in which data was incorporated with the questionnaire. From the total of 154 target enterprises, 112 enterprises were included in the sample size for the study. The sampling design that was studied is simple random sampling from the target group of small and medium-sized businesses. The study used both descriptive statistical analysis and inferential statistical analysis (using SPSS software version 23). The findings of this research showed that there was a positive and statistically significant effect between microfinance services (loan and training) and the performance of small and medium enterprises. But in terms of saving, there was a negative and significant effect on the performance of small and medium enterprises.
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    The Effects of Revenue Management on Taxpayers’ Satisfaction: Evidence from Laga-TafoLaga-Dadhi Town Administration Category “C” Taxpayers,Oromia National Regional State
    (A.A.U, 2021-06) Taye, Nigatu; Hagos, Alem (PhD)
    Tax is the major source of public revenues, and government needs financial resources to play a role that is expected from it by the public. The major objective of this study is to examine the effect of revenue management on taxpayers’ satisfaction using the case of Laga-tafoLagadadhi town Revenue authority and its taxpayers. The main rationale for undertaking this study is to bridge the research gap that most of the previous works did not address the causal relationships existing between revenue management and customers’ satisfaction that belongs to category ‘C’ taxpayers. To achieve the objectives of this study, both qualitative and quantitative research approaches are been employed in line with this 357 questionnaires were randomly distributed to category ‘C’ taxpayers living in Laga-tafoLaga-dadhi town of Oromia regional state. The data collected through survey questionnaires is analyzed using SPSS software package. According to the findings of the study, three of the revenue management quality service indicators are found to have a positive and satisfactorysignificant effect on taxpayer satisfaction. Specifically, while reliability, responsiveness and empathy are found to be statistically significant; Tangibility and assurance of revenue management are found to be statistically insignificant at 5% level of significance.Based on the findings,the study recommend that the revenue authority should improve the current tax service and facilities to increase customers’ satisfaction; improve taxpayers’ attitude through tax education, awareness creation and consultation sessions; and the office should provide important services timely and adequately. It is also recommended that the office should solve the customers’ complaint properly; keep their records accurately following the standards of documentation and filing.
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    Factors Causing Profit Fluctuation in Ethiopian Private Banks.
    (Addis Ababa University, 2017-01) Shifa, Adanech; Hagos, Alem (PhD)
    This paper examines internal and external factors that cause profit fluctuation in Ethiopian Private Banks. Six private commercial banks were the subject for the study ranging from 2006 – 2015. The bank's financial statement, National Bank of Ethiopia and Ministry of finance and Economic Cooperation has been the main source of data for the study and the panel analysis has been carried out to obtain the result for this empirical study. Also the research used primary data (questioners). The samples are select using non probability/purposive sampling on the basis that the sample banks are representative of the specific problem. The study begins with Hausman test (Random Effect Model versus Fixed Effect Model) to determine the most suitable model to be used in this study. The empirical result shows that Banks Branch Expansion, Expense management and Asset quality have negatively affect profit and are the major contributor in profit fluctuation. The results suggest that Ethiopian private commercial banks could improve their expense management by formulating policies around these factors and banks have to pay attention to the Provision for Loan Losses. The findings also showed an insignificant relationship among inflation rate and Ethiopian private commercial banks profit fluctuation Key words:- Profit fluctuation, Private commercial Banks.
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    The Impact of Tax Reform on the Revenue Productivity of the Ethiopian Tax System
    (Addis Ababa University, 2017-06) Mamo, Sibhat; Hagos, Alem (PhD)
    Ethiopia faces difficulty in raising tax revenue to the level required for the promotion of economic growth and development. To address these fiscal challenges, the government of Ethiopia has initiated a sequence of tax reforms. The evaluation was made in to two different categories. The first category dealt with the whole period (1974/75 – 2013/14) to evaluate the impact of tax reform on revenue productivity of Ethiopian’s overall tax system and major tax categories on the basis of tax buoyancies and elasticity which particularly emphasized on the 1975, 1992, and 2002 tax reform. The second category was compared with total tax revenue buoyancy of the Derg regime period (1974/75-1991/92) and the Ethiopian People’s Revolutionary Front (EPRDF) period (1992/93-2013/14).The two step Engel- Granger method of measuring revenue impacts of discretionary tax measures by means of single equation econometric model is adopted and Ordinary List Square (OLS) estimation techniques is used. Evidence suggested that the overall tax system in Ethiopia during the period under study was income inelastic and this means that the attained growth in national income spurred a less than proportionate automatic increase in national tax revenue and this inelasticity of the overall tax system is found to be mainly due to low tax- to- base elasticity of individual tax. Relatively low tax-to-base elasticity may be explained by inefficient and poor tax administration and the existence of high exemption. Moreover, the regression results revealed that the estimate of buoyancy of the indirect tax in general and foreign trade tax in particular is higher during EPRDF period compared to Derg period. Eventually, the finding suggests that tax reforms had an overall positive impacts on tax responsiveness through more effectively increased elasticity of the base-to- income component and less effectively through the lower elasticity of the tax-to- base component. Despite this positive impact, tax reforms failed to make the tax system responsive to income change. Hence the study make recommendation on the direction of improved response of tax-to-base, establishment of a strong tax administration to increase tax collection, reducing exemption, broadening the tax base and bringing new tax payers in to tax net. Key words: tax reform, tax productivity, tax base, buoyancy, elasticity, structural measures
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    Prospects and Prepardness of Establishiment of Stock Exchange Market in Ethiopia
    (A.A.U, 2022-02) Gebreyes, Samuel; Hagos, Alem (PhD)
    The country's economic growth can be affected by different factors, from Which Stock exchange market has an important role in terms of capital accumulation through raising huge finance in order to establish big corporations and mega projects. Hence, securities should be transferred from one to another through the stock market to enhance further investment. Moreover, the number of listed corporations, total value traded and liquidity of stock market turnover enhance the economic growth represented by real gross domestic product (GDP). This research studied Prospect and preparedness of establishment of stock exchange market in Ethiopia by analyzing the factors affecting stock market development and their importance to corporate business development as well as economic growth of the country. This research has tried to assess how the lack of a stock market affects corporate business development in Ethiopia by selecting specific business sectors on a few selected Insurance Companies. Moreover, the study is carried out utilizing a descriptive research approach and a questionnaire conducted by non-probability convenience sampling of employees from selected insurance companies and NBE, as well as qualitative and quantitative data (mixed) the study makes use of both primary and secondary data. The study has discovered the following findings: Lack of SEM makes it difficult for businesses to raise capital for expansion or further investment, discourages domestic saving, eliminates the option of using SEM as an alternative source of credit, has a negative impact on local investment and income generation from selling/buying stock, and affects skill manpower in accounting and auditing, as well as supervision and regulation. As a result, the study recommends that the government expedite the establishment of SEM, as well as intense training and the outsourcing of skilled people. Key words: stock market, market capitalization, Gross domestic product, Listed Companies.