Browsing by Author "Hagos, Alem (Phd)"

Now showing 1 - 4 of 4
  • No Thumbnail Available
    Item
    Determinants of Bank Deposit In Ethiopia: A Case of Awash Bank
    (A.A.U, 2021-04) Defar , Argan; Hagos, Alem (Phd)
    It is very important to identify factors determining the deposit of a bank and examine the relationship between exogenous and endogenous variables. The main purpose of this study is to investigate the determinants of Awash Bank deposit over a period of twenty six years. Explanatory research design and quantitative research approach were employed. The study identified bank-specific (profitability, loan to deposit ratio), and macroeconomic variables including, deposit interest rate and unemployment rate, as a target variable in determining bank deposit over the twenty six years of time series data from 1995 up to 2020. In order to answer the research question, secondary data was collected from financial statement of the bank, national bank of Ethiopia and central statistical agency of Ethiopia. Analysis was done by using descriptive statistics and multiple linear regression analysis with OLS and Granger causality model using STATA software package. The empirical findings showed that the overall regression model is significant, and also specifically, LTDR, UNER & PROF are significant at 1%. But, DIR is insignificant at 5%. The bank strongly advised to pay attention on both internal and external determinants. It had better if awash bank give strong emphasis on deposits and its determinant factors. And also bank ought to take a remedial action periodically for those influential determinants which has affected bank deposit significantly like profit, unemployment rate and loan to deposit ratio. And also the government should create job opportunities and reduce unemployment rate. Additionally, the researcher put the further suggestion that similar study to be conducted by covering a both primary and secondary source of data that might be determinant factors of commercial bank such as: technology, number of customer, service quality, and number of staff, inflation rate and other variables which have a qualitative and quantitative in nature
  • No Thumbnail Available
    Item
    Determinants of Capital Structure in Commercial Banks of Ethiopia
    (A.A.U, 2021-04) Messele, Merkin; Hagos, Alem (Phd)
    Although there have been many prior studies on the determinants of capital structure, the question of what determines the best financing mix that maximizes a firm’s value is still the most debatable issue in corporate finance. Besides, a great deal of previous studies focused mainly on developed countries’ non-financial firms paying little attention to developing countries and financial sector. Therefore, this study attempted to fill the gap by analyzing the capital structure for commercial banks in Ethiopia. As a result, this study has examined the relationship between leverage and firm specific (profitability, liquidity tangibility, risk, size and growth) determinants of capital structure decision, and the capital structure theory that can explicate the capital structure of banks in Ethiopia. Quantitative research approach was utilized for data analysis by collecting secondary data in the form of document review. The study has used purposive sampling technique to select among eighteen banks currently operating in Ethiopia. More specifically, the study has used nine years (2011 - 2019) data for nine banks in Ethiopia. The panel data were analyzed with a clustered robust random effect regression model. The findings show that, size, tangibility, profitability and growth of the banks are important determinants of capital structure of banks in Ethiopia. But, risk and liquidity of banks are found to have no statistically significant impact on the capital structure of banks in Ethiopia. The empirical findings of the study mean that the two capital structure theories, static trade-off and pecking order, are explaining the capital structure decision of Ethiopian commercial banks. Commercial banks in Ethiopia should pay due attention to the microeconomic variables without overlooking the macroeconomic condition while articulating their optimal capital mix which can reduce the weighted average cost of capital and enhance the wealth of the company. Therefore, banks should give attention to profitability, tangibility, size and growth when they determine their optimum capital structure.
  • No Thumbnail Available
    Item
    Determinants of Capital Structure of Small and Medium Sized Enterprises in Addis Ababa
    (A.A.U, 2021-06) Nigusie, Abebe; Hagos, Alem (Phd)
    The objective of the study is to investigate the determinants capital structure of small and medium sized enterprises in Addis Ababa . The scope of this study was limited to the determinants of capital structure decision of small and medium sized enterprises in Addis Ababa reference to small and medium sized firms operating in Addis Ababa .This study adopted quantitative research approach which is numerical by using panel data model to meet the research objective. This study used a descriptive survey design and data used for this study was from both primary and secondary data sources. Primary data was collected by using document review tools. Document review tools were used to gather information from SMEs. Secondary data was collected from documents and archival records of the selected SMEs. The target population for this study was 300 small and medium sized enterprises located in selected sub cities of Addis Ababa . A sampling frame of each of all the members of the selected SMEs sectors: manufacturing sector, trade sector, and construction sector was used for sample selection. The sample size was determined by using the formula of Yemane (1976) and a sample of 172 respondents was selected from 2 sub cities of Addis Ababa city administration using simple random sampling technique. A multiple linear regression model was used to determine the relative importance of each independent variable to determine SME’s capital structure. This study used econometric model of multiple linear regressions where leverage was regressed against Tangibility, Growth, Age, Profitability, GDP growth rate, Inflation and Interest rate. The data collected was presented using tables and analyzed using percentages, means, and standard deviation in line with the objectives of the study. The data was cleaned, coded, and entered in to STATA 13 for analysis. The findings of this research show that. Interest rate, age, profitability, growth opportunity and tangibility variables were found to be significant factors that affect capital structure decision measured by leverage of SMEs.
  • No Thumbnail Available
    Item
    Determinants of Tax Compliance in the Case of Small and Medium Enterprises
    (A.A.U, 2021-05) Adugna, Ashebr; Hagos, Alem (Phd)
    The main objective of this study was to identify the determinants of tax compliance on small and medium enterprise taxpayers’: the case of kirkos subity Addis Ababa. The specific objective includes examining, the effect of tax rate, knowledge of tax system, fairness of tax system, and trust in government on tax compliance. The research used explanatory research methods. The primary data was collected using Likert scale questionnaires distributed to the small and medium enterprise owners and employees in kirkos sub city taxpayers. Dependent variable (Tax compliance) was measured in terms of complied to tax law that is registered timely, collect taxes by a legal receipt, file the tax returns in the actual filing date, compute the tax liability as per the tax rate specified in the law, paid the right amount of tax within the time frame stipulated in the tax law and have adequate records to complete tax returns and associated tax documentation. The predictor or independent variables were tax rate, tax knowledge, fairness of tax system, probability of being audited, and trust in government. The target population was 8013 from SMEs registered taxpayers. The researcher utilized stratified random sampling for taxpayers and purposive sampling techniques to select the participants. A sample size of 381 has been drawn from the tax population in Addis Ababa kirkos sub city SMEs. The descriptive statistics was used to analyze the tax compliance and inferential analysis (multiple regression analysis) to determine the cause and effect relationship Independent variables on dependent variable and to test the hypothesis. According to the regression output the knowledge of tax system, fairness of tax system tax audit and trust in government affect the tax compliance significantly and positively. The remaining variable tax rate negatively related with tax compliance and their contribution was statistically insignificant. All these independent variables are making 67.2% of the contribution for tax compliance. The results of this study also provide specific insights and enable policymakers to gain a better understanding of key variables that are significantly linked to tax compliance and enable them to implement appropriate strategies to minimize potentially harmful factors, as well as improve tax collections for their government. Thus, these factors should be given due consideration to enhance taxpayers’ compliance behavior and improve government’s revenue collection.