Browsing by Author "Mekonnen, Amanuel"

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    The Determinants of Capital Structure Evidence from Manufacturing Share Companies of Addis Ababa City.
    (Addis Ababa University, 2011-06) Mekonnen, Amanuel; Gebrehiwot, Gebremedihn (Assistant professor)
    Capital structure decisions are among the most important and crucial decisions for any business because of their effect on the value and cost of the company. In this paper, an attempt has been made to examine the relevance of theoretical internal (firm level) factors determine capital structure of manufacturing share companies in Addis Ababa, Ethiopia. To seek answers to these questions, seven explanatory variables; tangibility, non-tax shields, growth, earning volatility, profitability, age and size of the firm were regressed against the dependent variables of total debt ratio, short term ratio and long term debt ratio. In connection of this, a sample of 12 companies were take and secondary data was collected from audited financial statements of selected companies for the period of five years (1996- 2002EC). Stratified sampling design was employed and companies were selected based on simple random to represent different industry sectors (strata) within manufacturing share companies. Data was then analyzed on quantitative basis using multivariate OLS regression. The results show that tangibility, non debt tax shields, earning volatility, profitability, and size of the firm variables are the significant determinants of capital structure of Addis Ababa manufacturing share companies at least one out of the three models for capital structure employed in the study. While no clear and statistical proved relation are obtained for the variables growth of the firm and age of the firm in any of the capital structure models
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    The Determinants of Capital Structure Evidence from Manufacturing Share Companies of Addis Ababa City.
    (A.A.U, 2011-06) Mekonnen, Amanuel; Gebrehiwot, Gebremedihn (Assistant prof. )
    Capital structure decisions are among the most important and crucial decisions for any business because of their effect on the value and cost of the company. In this paper, an attempt has been made to examine the relevance of theoretical internal (firm level) factors determine capital structure of manufacturing share companies in Addis Ababa, Ethiopia. To seek answers to these questions, seven explanatory variables; tangibility, non-tax shields, growth, earning volatility, profitability, age and size of the firm were regressed against the dependent variables of total debt ratio, short term ratio and long term debt ratio. In connection of this, a sample of 12 companies were take and secondary data was collected from audited financial statements of selected companies for the period of five years (J 996-2002EC). Stratified sampling design was employed and companies were selected based on simple random to represent different industry sectors (strata) within manufacturing share companies. Data was then analyzed on quantitative basis using multivariate OLS regression. The results show that tangibility, non debt tax shields, earning volatility, profitability, and Size of the firm variables are the significant determinants of capital structure of Addis Ababa manufacturing share companies at least one out of the three models for capital Structure employed in the study. While no clear and statistical proved relation are obtained For the variables growth of the firm and age of the firm in any of the capital structure Models.
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    Local-level Assessment of Farmer's Adaptive capacity to Climate Change and Variability in Laelay Mychew Woreda Central Zone of Tigray
    (Addis Ababa University, 2011-05) Mekonnen, Amanuel; Simane, Belay (PhD)
    Despite its negligible emission of greenhouse gases Ethiopia has been affected by the adverse impacts of climate change and variability in different sectors among which the agricultural sector is of a critical focus of this study. This study was conducted with the general objective of analysing the adaptive capacity of farmers to climate change and variability in the two dominant agro ecologies of Laelay Mychew woreda central zone of Tigray based on data collected from 100 household. Descriptive statistics and chi square were used to analyse the trends of temperature, precipitation changes and occurrence of extreme climatic events in the study area over the last there decades as perceived by respondents. Accordingly there is an increasing and decreasing trend of temperature and precipitation respectively, while, drought, flooding and storm have shown increased frequency over the last 30 years. According to the chi square results there was a similar trend in the climate change and variability in both agro ecologies of the study.area. The adaptive capacity of farmers to climate change and variability in the study area was analysed by using descriptive statistics, chi squarelT-test and principal component analysis. According to the results from the descriptive analysis, farmers in the study area have low level of possession and access to the key livelihood assets. This leads to acceptance of the hypothesis of the study which states that farmers in the study area have low adaptive capacity to climate change and variability. The results from the principal component analysis also demonstrated that farmers in the Dega agro ecology have highest adaptive capacity to climate change and variability. In Hatsebo kebele (Dega) 64%, 36% and 0% of the surveyed households have highest, medium and lowest adaptive capacity to climate change and variability, where as in Welel kebele (kola) 4%, 28% and 68% of the total surveyed household have highest, medium and lowest adaptive capacity to climate change and variability. This difference is statistically significant at O.OJ/evel. Hence, the hypothesis that farmers living in Dega agro ecology have beller adaptive capacity to climate change and variability is accepted at less than O. OJ levels. To assess the demographic, socia-economic and farming characteristics that affect farmers adaptive capacity linear correlation was used. Accordingly, Adaptive capacity of farmers to climate change and variability in the study area is strongly affected by household head's age (0. 360), size of cultivable land(0.55J), type of agricultural practice(0.585) and household's wealth status(O.646) which is significant at 0.01 level. While it is moderately affected by household family size (0.226) and purpose of agricultural practice (0.254) and this is significant at 0.05 levels. So as to enhance the adaptive capacity offarmers in the study area measures such as, effective implementation of health care service, facili tating more supportive and cohesive social environment, better management of natural resources, beller access [0 basic extension services and facilitating inji'C/structure development, easy access to financial resources, improved early warning systems Cind awareness creation, and targeting adaptation initiatives towards the lowest adaptive capacity groups and more susceptible areas were recommended. Key words: Climate change and variability, Adaptive capacity, Agro-ecology