Browsing by Author "Mohammed, Jemal (PhD)"

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    Corporate Governance and Financial Performance of Commercial Banks in Ethiopia
    (Addis Ababa University, 2017-06) Million, Kokeb; Mohammed, Jemal (PhD)
    Corporate governance is an old age concept which provides for a set of transparent relationships between an institution’s management, its board, shareholders and other stakeholders. This paper investigates the impact of corporate governance mechanisms on firms' financial performance using five years data from the year 2012 to 2016 with total population of the study consists of 19 banks operating in Ethiopia and using purposive sampling technique and select a sample of fifteen Ethiopian commercial banks. Return on asset was used as the financial performance indicator. Corporate governance mechanisms considered in this study include board size, frequency of board meeting, board gender diversity, availability of separate risk management committee in the board, and level of corporate governance disclosure. The study controls the effect of bank size and financial leverage. The Pearson Correlation and the regression analysis were used to find out whether there is a relationship between the corporate governance variables and firms performance. In examining the level of corporate governance disclosures of the sampled banks, content analysis was applied to determine the level of disclosure using un-weighted checklist and a disclosure index was developed by adapted from (Ranti U. O., 2011) which is guided by UNCTAD- ISAR (United Nations Conference on Trade and Development/International Standards of Accounting and Reporting) benchmark of corporate governance disclosure items, the NBE code and OECD code of corporate governance. The study therefore observed that a negative relationship exists between board gender diversity and availability of separate risk management committee and the financial performance of these banks, while a positive relationship was also noticed between frequency of board meeting and performance. Finally, the board size and level of corporate governance disclosure does not have a statistically significant effect. The study suggests that importance of increasing board meetings. Also, steps should be taken to encourage commercial banks to disclose corporate governance information. Keywords: Corporate Governance Mechanisms, Disclosure Index, Financial Performance, Commercial Banks and Ethiopia
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    Corporate Governance Policy and its Effects on the Performance of Private Banks in Ethiopia - A Comparative Analysis
    (Addis Ababa University, 2016-12) Tesemma, Yohannes; Mohammed, Jemal (PhD)
    It is apparent that nowadays the issue of corporate governance has got due attention from various stakeholders such as the general public, academia and government policy makers. This may be due to the recognition of either the multifaceted benefits derived from its effective implementation or the severe consequences it poses otherwise. For this reason the objective of this research is to analyze the effects of the corporate governance policy enforced by the NBE on the performance of the private commercial banks operating in Ethiopia. Thus both primary and secondary data are collected from 14 (fourteen) private banks operating in the country and in order to address the objectives of the study, a deductive research approach and various statistical techniques such as Descriptive Statistics, T- test, Spearman’s Rank Correlation and Analysis of Variance (ANOVA) were employed so as to make comparative analyses among the corporate governance and performance variables during the periods 2011-15 and 2016 respectively. Taking in to account the expected outcome of implementing the policy effectively and the empirical findings of previously done researches, this study has made five hypotheses asserting that the corporate governance variables could have significant effects on bank performance. The analyses result from descriptive statistics depicts the existence of improvements in the implementation of most of the requirements of the policy relatively. However, analytical results from t-tests show that the changes were significant for some variables, but not for others. Spearman’s correlation results also demonstrate the existence of low correlation in general, except for board size and board composition in 2011-15. The results obtained using ANOVA on the other hand show that the mean variance of all corporate governance variables and bank performance are found not-significant during the study periods. Hence, all the hypotheses, except related to Board size, were supported. Based on the results obtained from the analyses some recommendations such as the determination of optimal board size by the banks , enhancing board composition through the participation of executives and/or non-executive professional personnel in boards’ and others are made that are thought to enhance the effectiveness of the policy through safekeeping the interests of both shareholders and other stakeholders and hence improving the performances of the banks accordingly; for that the proactive engagements of all the concerned such as the supervisory organ, the respective banks and others will have a remarkable impact on the effectiveness of the policy under consideration. Key words: Corporate Governance, Corporate Governance Policy, Bank Performance, Board Structure.
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    Determinants of Competition in the Commercial Banks of Ethiopia: An Empirical Evidence
    (Addis Ababa University, 2017-06) Serawitu, Sarah; Mohammed, Jemal (PhD)
    The development of a financial sector can very well be improved by enhancing the level of competition which can be achieved by improving the determinant factors. It is pertinent, therefore, to measure the level of competition and determine what factor affect the magnitude of the competition in the financial sector. This study provides an empirical evidence on the commercial banks of Ethiopia over the budget years, from 2000-2015. It measures the level of competition among the commercial banks of Ethiopia by taking a sample of the seven private commercial banks, i.e. Awash International Bank, Bank of Abyssinia, Dashen Bank, United Bank, Wegagen Bank and Nib International Bank, and Commercial bank of Ethiopia by using the Panzar-Rosse approach. I further tries to gauge what variable determine the level of competition in the commercial banks by using the contestability of market, financial liberation and economic factors. The results of the research show that the commercial banks of Ethiopia are in monopolistic competition which is a midway between perfect competition and monopoly; the market is in a long run equilibrium. The determinants of competition are found to have a joint statistically significant effect on the level of competition. The study suggest enhancing better access to financial services with in the country and also decrement of NBE’s regulatory power. Key words; commercial bank competition, determinants
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    The Effects of Employee Engagement and Self-efficacy on Job Performance: The cCse of Ethio-telecom Head Office
    (Addis Ababa University, 2017-06) Nuru, Entissar; Mohammed, Jemal (PhD)
    Due to the challenging economic climate, organizations now more than ever are deciding to restructure and resize, which has resulted in organizations investigating new approaches to maintain and increase employees’ job performance. This can be achieved by investigating what factors affect employees’ job performance. Among these factors, self-efficacy and employee engagement are examined in this study. Therefore, the purpose of this study is to examine the effect of self-efficacy and employee engagement on job performance.The research design for this study was the Cross-sectional field survey method where the Questionnaire was used to collect data with questions for employee engagement adapted from The Gallup Q12 Survey (or the Gallup Workplace Audit) (1992-1999)andto measure self-efficacy the researcher used Generalized Self-Efficacy scale (GSE)was used. The target population of the study was Employees working in Ethio-telecom at head office and the population includes all professional employees working under different department levels .Simple random sampling technique was used to select sample respondents and the total sample size involved in the study was 154 (88%). Quantitative data are presented using tables. Descriptive statistics were performed on the demographic variables as a means of describing the respondents. In order to assess the effect of engagement and self-efficacy on job performance, a correlation and regression analysis were conducted.The studyfound that there is a positive relationship between self-efficacy and job performance as well as in between employee engagement and job performance. The finding implies that, in order to enhance job performance, management should give attention to the development of self-efficacy and employee engagement within HR activities. Recommendations were also given to Ethio-telecom head office to put certain strategies that make employees more accountable for discharging their responsibility and increase the level of employee’s self-efficiency. The management body should employ certain leadership styles in order to increase employees performance and should give due attention to recognition for quality of work and good ideas, creating positive interaction between members of staff and making transparent system in the head office. Key words: Self-efficacy, Employee engagement and Job performance
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    Leadership Behavior in CBE and its Effect on Employee Performance: The Mediating Role of Organizational Commitment
    (Addis Ababa University, 2016-05) Worku, Dasalegn; Mohammed, Jemal (PhD)
    The increasingly competitive global economy has pushed companies to exploit their available resources as a means of achieving competitive advantage. In this regard leadership is critically important because it has a great impact on the condition of the organization. The purpose of this quantitative study is to investigate the relationship between Leadership behavior and employees’ Performance and employee commitment as mediating factor. The research is cross-sectional one. The research approach applied for this study was quantitative type of research where both descriptive and explanatory analyses have been deployed. The target population of this study was employees of commercial bank of Ethiopia working in Addis Ababa area at branch level, which includes 4 districts. From 5,500 total populations of CBE branches, which are found in Addis Ababa city, 420 employees were selected as the sample of the study. Sample random sampling technique was used to select the branches and individual respondents. The standardized questionnaires of leadership behavior organizational commitment and employees’ performance were adapted from previous standard questionnaire. ANOVA Analysis was used to compare the demographic characteristics of the respondents. Correlation and linear regression were used to analyze the relationship and its effect between leadership behavior and employees' performance through organization commitment as mediator. The regression results showed that the leadership behaviors have significant contribution for organizational commitment and employees’ performance. Moreover, all organizational commitment dimensions have significant effect with organizational performance. At last, the result conformed that organizational commitment has a mediating effect between leadership behavior and employees performance. Generally, managers need to improve their behavior to the highest level to improve the organizational commitment and employees’ performance. Key words: leadership behavior, employees’ performance and Organizational commitment