Accounting and Finance

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A Research Paper on: Factors Affecting Resource Mobilization and Utilization By Ngos in Ethiopia: The Case of Selected International Ngos
(A.A.U., 2023-06-07) Wondwosen Ketema; Habtamu Berhanu (Dr.)
The study mainly intends to explore factors that affect resource mobilization and utilization among selected International NGOs operating in Ethiopia. It is necessary to evaluate factors that affect resource mobilization and utilization, eighteen NGOs and donor related government authority audit firm were considered as a case study. The research used a mixed research approach by which both descriptive and explanatory. The study included 100 participants and due to the small target population, this study used the entire population. The quantitative and qualitative study was conducted to collect information from primary and secondary sources. For this research, a structured and standardized questionnaire was conducted. The data were analyzed by using the STATA software system to analyze the collected data which have been presented using tabulation. According to the conclusion of the study, strategies of resource mobilization adopted by NGOs, external factors and donor financial and associated requirements are important variables influencing the resource mobilization and utilization selected international NGOs. The study recommends that to meet effective resource mobilization and utilization, NGOs should emphasize on factors of resource mobilization and utilization such as strategies of resource mobilization, external factors, and the effect of donor financial and associated requirements
Access to Finance and its Challenge for Small Business Enterprises Case of Addis Ababa City
(Addis Ababa University, 2010-06) Zeru, Fetene; Duresa, Degefa (PhD)
Small-scale enterprises have become an important contributor to Ethiopia’s economy. The sector contributes to the national objective of creating employment opportunities, training entrepreneurs, generating income and providing a source of livelihood for the majority of low- income households in the country, accounting for material amount of GDP (Eshetu and Mammo, 2009). Improving access to finance for small business is an important devilment tool, because it helps these business sectors, in addition to strengthening the forward and backward integration to and from different sectors, to create employment for the unemployed and increases their income and consumption. The purpose of this paper was to bring to light one of the major prerequisites, namely access to finance aspects, of the small scale enterprises which are foundation in accelerating economic growth. The main objective of the paper is to identify the challenges that small businesses in Addis Ababa (selected sub cities) face in accessing finance from financial institution through identifying the dominant means of financing small businesses and factors influence the extent of accessing finance. The study was conducted by taking into account the demand side aspect. The most pressing problem identified, from response of small businesses and from responsible officers interviewed, was accessing fund to finance working capital and in fixed investment. The basic factors aggravated the problem for small business are loan covenants need by financial institution, lack of collateral, level of cost of financing and availability of other financing instruments. In addition; as it was confirmed from the research, luck of credit history with the financial institutions, willingness of banks and suppliers to provide credit and the firm’s specific outlook about sales and profitability have contributed to the problem. Key words: Access to finance, Small business enterprises
Accounting Information Systems and Business Performance: The Case of Commercial Bank of Ethiopia
(A.A.U, 2021-01) Kebede, Abraham; Berhanu, Habtamu
The purpose of the study was to identify the relationship between information system success and business performance as well the extent of moderating effect of Accounting Information System effectiveness on the above relationship of Commercial Bank of Ethiopia (CBE). The researcher used both primary and secondary data and used the explanatory research design. The researcher used a random sampling technique and an online questionnaire through the google platform to the CBE branch staff and customers and used Pearson correlation, multiple regression, and moderate regression to justify the objective of the study. The primary data are were collected through online based structured questionnaires and based on valid and complete sample responses of 108 employees and 108 customers of CBE selected based on stratified random sampling method. The finding of this study showed that IS success has a positive and significant impact on business performance and AIS effectiveness has a positive and moderate effect in affecting the relationship between IS success and business performance based on Service Profit Chain (SPC) model. Therefore, the researcher recommends companies should integrate information quality, service quality and system quality in designing IS framework design in a holistic approach and take into consideration the effectiveness of AIS as moderating factor to benefit the level of business performance expected from the IS model.
Accounting Practices of Small and Medium Sized Enterprises and its Effect on Access to Finance in Addis Ababa
(A.A.U, 2011-06) Mosisa, Tafa; Laxmikantham, P (Dr)
This study seeks to examine the accounting practice of small and medium sized enterprises and Its effect on access to finance in Addis Ababa. identifies the sectors the key to unlocking the economic potentials of the country. However, the sector is constrained by a number of factors which include among others minimum or poor accounting practice and difficulty in accessing credit. facilities. For the achievement of the objective of the study quantitative research approach particularly survey design were used and the data obtained were analyzed using descriptive statistics and ordinary least square regression. The study revealed that the majority to the studied firm has no formal accounting practice. The study also revealed that the major sources of finance available .for the establishment and expansion of SMEs in Addis Ababa are personal saving, microfinance, money form Fiends or relative, iqub and less From banks. The result of ordinary least square regression evidences that variables such as capitol, manager education level and age of the .firms are the significant determinants of firms' accounting practices whereas the problems significantly associated with access to bank credits are the demand for collateral, accounting practice or formal accounting information and age the farm
Accounting Practices of Small and Medium Sized Enterprises and its Effect on Access to Finance in Addis Ababa
(Addis Ababa University, 2011-06) Mosisa, Tafa; P., Laxmikantham (PhD)
This study seeks to examine the accounting practice of small and medium sized enterprises and its effect on access to finance in Addis Ababa. It identifies the sector as the key to unlocking the economic potentials of the country. However, the sector is constrained by a number of factors which include among others minimum or poor accounting practice and difficulty in accessing credit facilities. For the achievement of the objective of the study quantitative research approach particularly survey design were used and the data obtained were analyzed using descriptive statistics and ordinary least square regression. The study revealed that the majority of the studied firm has no formal accounting practice. The study also revealed that the major sources of finance available for the establishment and expansion of SMEs in Addis Ababa are personal saving, microfinance, money from friends or relative, iqub and less from banks. The result of ordinary least square regression evidences that variables such as capital, manager education level and age of the firms are the significant determinants of firms’ accounting practices whereas the problems significantly associated with access to bank credits are the demand for collateral, accounting practice or formal accounting information and age of the firm
Accounting Reform Results and Challenges at Selected Federal Public Bodies of Ethiopia
(Addis Ababa University, 2018-03) Demissu, Lemma; Degefe, Duressa (PhD)
This study examines the Ethiopian government accounting reform results and challenges with the view point of examining what diagnostic problems identified initiating the reform, what measures undertaken to change the situations, what results achieved during the implementation and unclosed issues of the reform. For this study the researcher gathered primary and secondary data, analysed and interpreted the data. The primary data were collected through conducting survey on structured questioners, interviews and discussions with experts and heads of finance and audit functional units of the selected institutions. Researcher’s personal observations were also incorporated as primary source. The secondary data were collected through reviewed relevant manuals, assessments, public finance proclamations, regulations, directives and other government official documents and publications. Then the study identified that the accounting reform exhibited several success results including transforming the base from single entry and pure cash base to modified cash base accounting, the introduction of self-accounting and auditing, improvement in quality of the financial statements, the development of unified chart of accounts, comprehensive legal frameworks and integrated financial information systems. However, still having competent and professional human resource, stable, efficient and sustainable financial information technology, more advanced system of accounting records oriented with the new public finance management are challenges and unclosed issues of the reform. Therefore, the study concludes that further reforming the Ethiopian government accounting system is necessary.
Adoption of Electronic Banking System in Ethiopian Banking Industry: Barriers and Drivers
(Addis Ababa University, 2012-05) Gemechu, Ayana; Subramanian, Ulaganathan (PhD)
This thesis aims to examine adoption of E-banking in the Ethiopian banking industry with respect to the barriers which can influence firms from taking advantage of E-banking system and expected benefits derived by adopting the system. The study was conducted based on the data gathered from four banks in Ethiopia; three private banks (Dashen bank, Zemen bank and Wegagen bank) and one state owned bank (commercial bank of Ethiopia). A mixed research approach was used to answer the research questions that emerge through the review of existing literature and the experiences of the researcher in respect of the E- banking system in Ethiopia. The study statistically analyse data obtained from the survey questionnaire. A research framework developed based on technology-organization- environment framework and Technology acceptance model to guide the study. The result of the study indicated that, the major barriers Ethiopian banking industry faces in the adoption of Electronic banking are, security risk, lack of trust, lack of legal and regulatory frame work, Lack of ICT infrastructure and absence of competition between local and foreign banks. The study also identified perceived ease of use and perceived usefulness as a driver of adopting E-banking system. The study suggests a series of measures which could be taken by the banking industry and by government to address various challenges identified in the thesis. These measures include: Establishing a clear set of legal frame work on the use of technology in banking industry, supporting banking industry by investing on ICT infrastructure and banks needs to be focused on technological innovation competition rather than traditional bases of retail bank competition
Adoption of Electronic Banking System in Ethiopian Banking Industry: Barriers and Drivers
(A.A.U, 2012-04) Gemechu, Ayana; Subramanian, Ulaganathan(Dr.)
This thesis aims to examine adoption of E-banking in the Ethiopian banking industry with respect to the barriers which can influence firms from taking advantage of E-banking system and expected benefits derived by adopting the system. The study was conducted based on the data gathered from four banks in Ethiopia; three private banks (Dashen bank, Zemen bank and Wegagen bank) and one state owned bank (commercial bank of Ethiopia). A mixed research approach was used to answer the research questions that emerge through the review of existing literature and the experiences of the researcher in respect of the E banking system in Ethiopia. The study statistically analyse data obtained from the survey questionnaire. A research framework developed based on technology-organization environment framework and Technology acceptance model to guide the study. The result of the study indicated that, the major barriers Ethiopian banking industry faces in the adoption of Electronic banking are, security risk, lack of trust, lack of legal and regulatory frame work, Lack of ICT infrastructure and absence of competition between local and Foreign banks. The study also identified perceived ease of use and perceived usefulness as a driver of adopting E-banking system. The study suggests a series of measures which could be taken by the banking industry and by government to address various challenges identified in the thesis. These measures include: Establishing a clear set of legal frame work on the use of technology in banking industry, supporting banking industry by investing on ICT infrastructure and banks needs to be focused on technological innovation competition rather than traditional bases of retail bank competition.
The Adoption of International Financial Reporting Standards (IFRS) in Ethiopia: Benefits and Key Challenges
(Addis Ababa University, 2012-05) Fantahun, Fikru; Laxmikantham, P. (PhD)
This study aims to examine the adoption of International Financial Reporting Standards (IFRS) in Ethiopia. The study focuses on examining the benefits and challenges of IFRS including the factors that could influence its adoption. To answer research questions and test the hypotheses the study adopted the mixed research approach. The questionnaire data were analyzed using descriptive statistics, correlations, and multiple linear regression analysis and data from interview and document reviews were interpreted qualitatively. The results show that IFRS adoption in Ethiopia will result in a number of important benefits to a wide range of stakeholders. High cost of adopting, the complex nature, lack of proper instructions from regulatory bodies for implementing IFRS, as well as IFRS’s emphasis on fair value accounting, are listed among the most important challenges of IFRS adoption. The study also find that with the exception of government policy the other four variables which are professional bodies, capital market, educational level and company size significantly influence the adoption of IFRS in Ethiopia. Finally, the thesis displayed practical implications for the government of Ethiopia and regulatory bodies in setting a firm deadline for the IFRS adoption and in following the proper application of all the adopted standards. The findings also suggest that a rigorous IFRS capacity building program should be embarked by the government, all regulatory bodies, firms and training institutions in order to provide the needed manpower for IFRS implementation. Keywords: Adoption, International Financial Reporting Standards, Ethiopia
The Adoption of International Financial Reporting Standards (IFRS) in Ethiopia: Benefits and Key Challenges
(A.A.U, 2012-05) Fantahun, Fikru; Laxmikantham, P (Dr)
This study aims to examine the adoption of international Financial reportitt's standards ([FRS) in Ethiopia. the study focuses on examining the benefits and challenges of [FRS including the factors that could influence its adoption. to answer research questions and test the hypotheses the study adopted the mixed research approach. the questionnaire data were analyzed using descriptive statistics, correlations, and multiple linear regression analysis and data from interview and document reviews were interpreted qualitatively. The results show that [FRS adoption in Ethiopia will result in a number of important benefits to a wide range of stakeholders. high cost of adopting, the complex nature, lack of proper instructions from regula ton) bodies for implementing [FRS, as well as [FRS's emphasis on fair value accounting, are listed among the most important challenges of [FRS adoption. the study also find that with the exception of government policy the other four variables which are professional bodies, capital market, educational level and company size significantly influence the adoption of [FRS in Ethiopia. Finally, the thesis displayed practical implications for the government of Ethiopia and regulaton) bodies in setting a firm deadline for the [FRS adoption and in following the proper application of all the adopted standards. The findings also suggest that a rigorous [FRS capacili) building program should be embarked by the government, all regulaton) bodies, firms and tmining institutions in order to provide the needed manpower for [FRS implementation.
Adoption, Challenges and Perception of International Financial Reporting Standards (IFRS) on the Quality of Financial Reporting of Financial Institution in Addis Ababa, Ethiopia
(Addis Ababa University, 2016-05) Hailemichael, Melese; Laxmikantham, P. (PhD)
International Financial Reporting Standards (IFRS) have been adopted by 143 countries around the world. The goals of the IFRS is to develop, in the public interest, a single set of high-quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles. However, its adoption and implementation bring opportunities and create challenges to the adopter. The main objective of this study was to assess the adoption, challenges and impact of international financial reporting standards (IFRS) on the quality of financial reporting of financial institution in Addis Ababa to provide an input for financial institution, governmental and policy makers and serve as for future researches on this field of study. Both primary and secondary sources of data have been used for the study from 32 financial institutions. Primary data were collected through pre designed questioners whereas secondary data were collected from different governmental organization reports, scientific papers and proceedings relevant to the study using document and regression analysis techniques, and proclamations and regulations that deal with financial reporting issues in Ethiopia. The study found that some financial institutions in Addis Ababa, Ethiopia have started using IFRS voluntarily for the preparation of their financial statements without making necessary awareness but nationally; IFRS is adopted officially in December 5, 2014 through enactment of Proclamation. And from the analysis of survey that in the dependent and independent variables there is significant correlation. Among those the IFRS on the quality of financial reporting has significant correlation with the transparency, accountability and economic efficiency. The result of the study will provide a good lesson for other Financial Institution, Governmental and Policy Makers for the implementation of IFRS network. Key Words: IFRS, Adoption; Benefits; Challenge; Quality; Transparency, Financial institutions
Advanced Management Accounting Techniques in Manufacturing Firms in Ethiopia
(A.A.U, 2011-06) Bogale, Ermias; Duressa, Degefe
In order to survwe and remam competitive the manufacturing firms are under increasing pressure to become more efficient in managing and controlling their costs. This paper examines the level of advanced management accounting practices in manufacturing firms of Ethiopia and it examines the relationship of some theoretical factors that influencing the usage AMATs. The usage or its level of advanced management accounting techniques increased in the last five years and this implies that the manufacturing has awareness about this techniques. To examine the relationship of theoretical factors that might affect the usage of AMATs the paper used Pearson correlation and cross tabulation. As the Pearson correlation coefficient indicates usage of AMATs and usage of advanced manufacturing technology has strong relationship. In the regards of the Traditional Management Accounting Techniques, it uses widely and increased in the last five years. To keep pace with the world changing management accounting environment, Ethiopian manufacturing firms should use the newly developed techniques.
Agency Banking in Ethiopia: The Case of Wegagen Bank Sc and Lion Bank Sc
(A.A.U, 2020-12) Negassi, Mesfin; Alem, Hagos(Phd)
Now a day information Technology is highly important in every human activities which reduce many complications in our day to day activities. Agency banking is one of the banking service technology which enable customers to get financial service even without going to branches of the bank. The main objective of the study was to assess the development status of Agency Banking services in Ethiopia by taking the experiences of two banks (Wegagen Bank S.C and Lion Bank S.C) and agents participating in the development of the Hellocash MMS provision as a case study. The researcher use primary and secondary source of data in the study. The questionnaires were developed for sample employees and agents of Wegagen Bank SC and Lion Bank SC. In addition, Interview question was developed for Key informants with knowledge and required experience on the Hellocash pilot project to collect information regarding the viability of Hellocash MMS business model for agents and banks. Secondary data such as reports of banks, 12 months electronic records of customers (subscribers of Hellocash MMS) transactions data and the National Bank of Ethiopia mobile and agent banking directives were investigated in the study. The collected data was analyzed using descriptive and inferential statistics. The result of the study shows that the development of mobile and agent banking depends on the existing regulatory situation on Agency Banking services in Ethiopia as well as on specific factors such as amount of agent/Bank revenue from the Hellocash MMS, Cost reduction, security and reliability, Customer service and convenience
Aggressive Branch Expansion versus ATM and POS machine use (The case of Awash International Bank S.C in Addis Ababa)
(Addis Ababa University, 2015-05) Balcha, Berhanu; Seid, Mohammed (PhD)
In this project, the aggressive branch expansion of Awash International Bank S.C in Addis Ababa vis-à-vis modern banking technologies of ATM/POS was studied to investigate if the aggressive branch expansion of AIB is advantageous. The cause of the aggressive branch expansion is identified to be the introduction of NBE bills which eroded the fund to be used for customer lending. The study used descriptive research design to gather qualitative and quantitative data. Both primary and secondary data were used for the data analysis and for the study findings. The primary data were collected through questionnaires from customers and employee of the bank. The secondary data are collected from published and unpublished documents of AIB and NBE. Questionnaires were distributed to each class of branches to collect data from the bank's customers. One branch was selected from each class of branch using lottery method to collect data from the bank’s customer. Questionnaires were distributed to all department managers and above department positions as well as to relevant division and branch managers. The research found that aggressive branch expansion is not advantageous for AIB. Moderate branch expansion along ATM/POS expansion is better for AIB from profit perspective. The study will help the bank to reconsider its aggressive branch expansion. It will also help the bank to correct problems identified in the ATM/POS usage. The study will also help as an input for further study.
Agricultural Financing by Banks of Ethiopia the Case of Commercial Bank of Ethiopia
(Addis Ababa University, 2016-01) Abebe, Fitawek; Yitayew, Abebe (PhD)
This study is conducted to assess the agricultural financing in the Commercial Bank of Ethiopia, with particular emphasis on pre sanction appraisal and post sanction control of agricultural lending. The study also looked at the trend of non performing agricultural loans during the past ten-year period and the factors that account for agricultural bad loans. It also aimed to identify the different credit risks inherent to agricultural loans and the challenges in agricultural credit risk management of the bank. Both Primary and secondary data were used in the study. Data is collected through questionnaire & interview. It is found that the percentage share of agricultural non-performing loans to total non-performing loans showed a rapid increment from 2011 onwards except in the year 2015. The study also found that, the major risks the bank faced in agricultural lending are production risk, price risk and over indebtedness. Further the study identified that lack of technical experts providing their independent evaluation of the agricultural feasibility study, lack of properly trained consultant to prepare agricultural project feasibility study, less availability of data and up to date information, less capability of credit performers of the bank to evaluate the technical and financial projections of agricultural projects, are some of the major challenges to proper management of agricultural credit risk in the bank. Regarding the causes for agricultural loan default, crop damages, inadequate supervision or follow up, diversion of borrowed funds, willful default, lack of proper investigation before lending and lack of good communication facilities are the major causes for agricultural non-performing loan. To minimize the agricultural credit risk, some measures are recommended to the management. These are; hiring more agricultural expertise, strengthening the bank’s MIS and the marketing, research and development departments, providing regular training for all credit performers, revising the sufficiency of loan delivery time to evaluate the bankability of agricultural loan requests. Key words: Agricultural financing, Commercial Bank of Ethiopia
An assessment of bank fraud trends and its determinants: The case of CBE
(A.A.U, 2024-06-03) Mintamir Shibabaw; Temesgen Worku (PhD)
Bank fraud in Ethiopia has increased in alarming rate. According to the Ethiopian Federal Police Crime Investigation Bureau's annual report for 2018 and 2019, Ethiopian banks lost 326,343,280 Birr in just those two years. The study assessed the trends of bank fraud and its determinants in the case of CBE. The study used descriptive research design methods. This is because quantitative number of frauds cases counted with sampled call center staff responses to understand types, causes, effects and possible higher level action points. Accordingly, we can understand the overall trends and patterns of frauds specifically related to negative consequences of digitization of banking services. The study interest of population was the CBE Call center customers fraud related complaints that registered on CRM and 89 questionnaires were also distributed to managers and staff of the call center. The identification of the CBE Call center managers and employees done through stratified random sampling techniques. Through the completion of tally sheets, the delivery of structured surveys, and the reading of several CBE publications and articles, both primary and secondary data gathered. Times series analysis non-parametric Mann-Kendall‟s trend test were applied to assess the trend and in order to forecast fraud from June to November ,2023, ARIMA technique were used. The total number of fraud cases recorded in CRM from April 1,2022 to May 31,2023 was 495. The researcher selected this period due to the fact that an appropriate data had been recorded at the CBE Call center during this time. There was a modest increase of frauds in the stated period. As it can be summarized from the study, 75% of the respondents believed that customers are losing their confidence on banks because of such increasing cases of frauds. Therefore, various proposed actions shall be taken to reverse such trends.
An Assessment of Credit Risk Management Practice: The Case of Abay Bank S.C
(A.A.U, 2024-05-03) Workneh Lashetew; Abebaw K.(PhD)
Credit risk is an essential factor that needs to be managed. Credit risk is the possibility that a borrower or counter party will fail to meet its obligations in accordance with agreed terms. Credit risk is one of the most vital risks for any commercial bank. Credit risk arises from nonperformance by a borrower. Among the risks that face bank’s credit risk is one of great concerns to bank authorities and banking regulators. This is because credit risk is that can easily and most likely prompts bank failure. Managing credit risk is not a simple task comprehensive consideration and practices are needed for identifying, granting, controlling and evaluating and monitoring credit risk. This research asses the practice of credit risk management in Abay Bank S.C. Therefore, the main objective of undertaking this study is to assess the credit risk management practice of Abay Bank S.C. For the study primary data is used. Primary data is collected using questionnaire and interviews. Regarding to the nature of the study, the research design is descriptive and quantitative study approach is adopted to assess credit risk management practice of bank. The research found that, credit risk monitoring procedure is not reviewed and updated regularly, the bank’s credit professionals do not conduct a formal meeting to discuss the customer’s history and future plans and there is lack of adequate training to credit management staffs and there is lack of adequate staff in credit management department of the bank. Finally based on the findings of the study, the following recommendations are given. Credit monitoring procedure should be reviewed and updated on regular basis; the bank should be adequately staffed the credit management department and the bank should arrange short term and long-term training to update and enhance the employees understanding about credit risk management.
An Assessment of Project Monitoring and Evaluation Practices: The Case of International NGOs
(A.A.U, 2024-06-04) Getinet Teferi; Temesgen Worku (PhD)
Monitoring & Evaluation (M&E) is a systematic process used to track and assess the progress, performance, and outcomes of projects, programs, or initiatives. This method involves the continuous collection, analysis, and interpretation of data to ensure that objectives are being met efficiently and to provide insights for informed decision-making. Monitoring & Evaluation (M&E) play a pivotal role in the success of development projects, allowing project managers to track progress, identify challenges, and make informed decisions. This study focuses on assessing the project monitoring and evaluation practice in five international NGOs (Action Against Hunger (ACF), Population Service International (PSI), Zionist Organization of America (ZOA), Jhpiego (Johns Hopkins Program for International Education in Gynecology and Obstetrics), and Fintrac (Feed the Future Value Chain Activity) operating in Ethiopia. By assessing the monitoring and evaluating practices and project performance, the research aims to contribute to a better understanding of achieving optimal project results. The study employed a census sampling method to collect primary data through questionnaires and interviews. Participants included program managers, program staff, finance managers, finance staff, M&E managers, and directors who worked more than a year in the organization. Out of the 70 distributed questionnaires, 67 were properly filled in and returned. The collected data was analyzed using SPSS, and the results were presented using tables. Findings revealed that the international NGOs involved relevant stakeholders, including beneficiaries, government, donors, and the community, in their M&E activities. However, the gap in practicing & implementing effective M&E systems were identified, such as limited resources in terms of funding, staff, and technical expertise. In conclusion, while the international NGOs have well-established M&E systems, improvements are needed in certain areas. Recommendations include clarifying the extent and objective of the of the M&E (Monitoring and Evaluation) system, providing adequate time and training for project staff, enhancing technical capacity in M&E tools, allocating sufficient budget to the M&E department, involving all stakeholders in M&E practices, ensuring the engagement of top management, and utilizing M&E evaluation reports to monitor project progress.
An Assessment on Credit Management Practices of Commercial Banks in Ethiopia: /The Case of Six Selected Private Commercial Banks/
(AAU, 2024-03-13) Kahsu Hluf; Abebaw Kassie (PhD)
Now days, the need to take credit to do a business is getting increased. This is so because entrepreneurs and business men have good business ideas but do not have initial capital to make their business in to practice. Whenever lenders (banks) decide to grant a credit, they need to have credit management and method of collecting it. This research work, therefore, dealt with the `Credit Management practices’ of selected commercial banks. The general objective is, then, to assess the banks` credit management practices and method of collections by taking 2023 as a reference year. The research design of this paper work is descriptive. The sampling technique that the researcher used is that of non-probability using convenience and purposive sampling. Both qualitative and quantitative approaches were used. The data gathered from the field and document analysis were tabulated, organized and systematically demonstrated in the form of tables and graphs. The major research findings of this research work revealed that the overall mean score value of credit appraisal variable was very satisfactory that is most respondents strongly agree to the existing credit appraisal. Besides, the overall mean score value related to the variable collection policy andits strategy was satisfactory that is most respondents agree to the existing credit collection policy. Further, the overall mean score value of the variable credit lending policy and related strategies showed average level of satisfaction. The criteria to get a credit need to have either buildings or vehicles, with which the lower society could not afford. Thus, the researcher recommends original educational documents to be considered as collateral to get a loan. This piece of work could also open a way for further research works treating the topic in a very wide way by considering the views of credit customers.
Analysis of Challenges on Business Strategy Implementation and Impact on Performance
(A.A.U, 2021-04) Berhe, Tarik; Abitie, Asres (Phd)
This research study is about analyzing challenges and factors that affect the strategy implementation process and their impact on performance. In conducting the research study explanatory and descriptive research design was used. Probability sampling technique, more specifically stratified random sampling technique was used in distinguishing the target sample of the study. Both qualitative and quantitative data were collected. Qualitative data were collected through interviews and presented in summary. On the other hand, quantitative data were collected using questionnaires and were analyzed by using descriptive analysis and inferential analysis methods. A descriptive analysis method was employed for the demographic characteristics of respondents. Three independent variables were identified in this research study. Those variables were operational factors, organizational structure, and measure and follow-up methods. Under operational factors, six sub-factors were identified. These sub-factors are communication, operational planning, resource availability, human resource factors, work environment, and policy and manual. These variables have been inferentially analyzed. The finding was that all independent variables correlated positively with the dependent variable (performance). Based on the result of the finding, measure and follow-up methods have the greatest effect on strategy implementation and as a result, it affects performance highly, the organizational structure has a moderate effect and operational factors (communication, operational planning, resource availability, human resource factor, work environment, and policy manual) have a lower but significant effect on performance. Although the analyzed result of quantitative data shows operational factors to have a lower effect on performance, qualitative data collected on this research study identified these factors as highly significant and factors that affect performance highly. Possible recommendation for effective strategy implementation and better performance is forwarded.

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