Corporate Finance

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A Partial Fulfillment of The Requirements for The Msc. In Corporate Finance: Specialty In Investment Management
(Addis Ababa University, 2025-09) Fikreyesus Temesgen; Tenkir Seifu (PhD)
This study investigates the impact of Ethiopia’s 2020 currency notes reform on formal financial participation within the country’s banking sector. Utilizing a quantitative research approach, the analysis leverages panel data from eleven commercial banks covering the period 2014/15 to 2023/24. The research employs both descriptive statistics and an Interrupted Time Series (ITS) econometric framework to assess immediate and sustained changes in key indicators that are bank deposits, active account ownership, and mobile banking adoption following the reform. The findings reveal a statistically significant immediate surge in formal financial participation, as measured by a composite index standardized from these multiple indicators, and a pronounced acceleration in its growth rate postreform. Results highlight that, compared to similar reforms in India and Nigeria; Ethiopia’s policy not only compelled shortterm formalization but also fostered enduring behavioral shifts towards the formal financial system. The study further identifies a substitution effect between telecomled mobile money platforms and traditional banking services, signaling the evolving dynamics of digital finance in Ethiopia. Policy recommendations emphasize the need for sustained public awareness, digital infrastructure investment, and regulatory frameworks that foster synergy between banks and nonbank financial service providers. Overall, the research demonstrates that welldesigned currency reforms, when paired with supportive policies and robust implementation, can serve as effective catalysts for broadening formal financial participation and strengthening economic resilience in developing economies.
An Assessment of Financial Product of Murabaha Practical Implications of Murabaha of full fledge Islamic Banks in Ethiopian
(Addis Ababa University, 2025-09) Salih Abdrsemed; Hawlet Ahmed (PhD)
The study examines the operational effectiveness, accessibility, financial outcomes and customer satisfaction of Murabaha in Ethiopia, focusing on Zamzam and Hijra banks. Using descriptive research design and mixed-methods approach, data were collected from 80 customer through structured and open-ended questions. Findings indicate that Murabaha is widely perceived as Shariah-compliant, transparent and effective in achieving both personal and business financial goals. Customer trust its asset-backed structures and show high willingness to recommend it. However, challenges such as complex documentation, repayment difficulties, communications gaps, and limited rural outreach persist. while both banks face similar issues, hijra bank performs slightly better in affordability and delivery. The study contributes to the limited empirical literature on Islamic finance in Ethiopia a supports Islamic finance and financial inclusion theory, emphasizing the importance of transparency, accessibility and customer trust. key recommendations include improving operational efficiency, expanding rural access, enhancing staff training, simplifying procedures and strengthening regulatory frameworks
Analysis of the determinants of Banking agents’ Performance: The Case of Commercial Bank of Ethiopia Bole District
(Addis Ababa University, 2025-08) Senait Kebede; Tinker Seifu (PhD)
This study examined the determinants of banking agent performance for the Commercial Bank of Ethiopia (CBE) within the Bole District of Addis Ababa. The research identified key factors influencing agent success, drown up on a theoretical framework encompassing Innovation Theory, Agency Theory, Perceived Risk Theory, Transaction Cost Theory, and Bank-Led Theory. A quantitative methodology was employed, utilizing structured questionnaires to collected data from a sample of CBE banking agents selected through stratified sampling. The study examined the impact of agents’ banking knowledge, infrastructure, financial costs, and bank-to-agent location on agent performance. By analyzed this data using SPSS, the research seeks to provide insights into how CBE can optimize its agent banking model to enhance agent effectiveness and contribute to broader financial inclusion goals within Ethiopia. The findings indicated that agent performance is positively impacted by infrastructure and agents’ knowledge, and negatively by transaction cost and bank-to-agent distance. The research was expected to inform policy recommendations aimed at improving agent training, strengthening network infrastructure, reducing financial burdens on agents, and enhancing awareness creation measures. The study acknowledges the limitations of sampling and calls for further research to validate the findings and explore the issue of agent banking in diverse contexts.
Assessing The Effects of Floating Exchange Rate Regimes on Investment in Ethiopia
(Addis Ababa University, 2025-09) Milliyon Legesse; Mengistu Bogale (PhD)
This research examines the effects of Ethiopia's transition to a floating exchange rate system in July 2024 on investment trends. A mixed-methods design integrates macroeconomic statistics from the NBE, IMF, and World Bank with sectoral data from the Ethiopian Investment Commission, supplemented by qualitative stakeholder perspectives. Foreign direct investment increased by 13.2% year-on-year, with EIC data indicating significant inflows into agro-processing and textiles, rising by 21.5% and 18.7%, respectively. Conversely, domestic investment contracted, as gross fixed capital formation decreased from 7.6% to 2.8%, influenced by increasing input expenses and exchange rate instability. Imported inflation reached a maximum of 31.8%, disproportionately impacting SMEs and import-reliant industries. The study suggests that in the absence of hedging mechanisms or focused policy interventions, Ethiopia's liberalized system may not achieve consistent, widespread investment benefits
Assessing The Practice of Corporate Social Responsibility (Csr): The Case of Selected Commercial Banks in Ethiopia
(Addis Ababa University, 2025-09) Ephrem Girma; Mengistu Bogale (PhD)
Corporate Social Responsibility (CSR) has emerged as a crucial strategic practice for businesses worldwide, particularly in sectors that directly interact with society, such as banking. In Ethiopia, although CSR awareness is growing, its application within the banking industry remains inconsistent and largely underdeveloped. This study assesses the practice, awareness, and intensity of CSR activities among selected commercial banks in Ethiopia. Utilizing a quantitative research approach, data were collected from 181 employees working in the marketing departments of 15 commercial banks with over 15 years of operational experience. The findings reveal that while most banks demonstrate awareness of CSR and have formal policies in place, the implementation tends to be reactive, focused on philanthropic initiatives rather than integrated, strategic programs. Key CSR activities are primarily centered around labor practices, customer relations, community development, and limited environmental engagement. The study identifies regulatory gaps, limited training, and lack of strategic alignment as major challenges hindering effective CSR implementation. Based on these insights, the research recommends strengthening institutional frameworks, enhancing employee training, and embedding CSR into banks' core business strategies to promote sustainable development and long-term stakeholder value.
Assessment of Corporate Governance for Ipo Readiness: The Case in The Ethiopian Financial Sector
(Addis Ababa University, 2025-09) Natnael Hailu; Dakito Alemu (PhD)
This study examines corporate governance within Ethiopia's financial sector, with a specific focus on the context of initial public offerings (IPOs). Effective governance is essential for maintaining company integrity and operational efficiency, as it helps build long-term value for stakeholders by establishing clear regulations, ensuring accountability, and fostering transparency. An IPO signifies a company’s shift from private to public ownership, which can be successfully navigated through robust governance practices and examines key factors, including board structure and diversity, the educational background of board members concerning IPOs, clarity in financial reporting, risk assessment strategies, the effectiveness of audit committees, and corporate social responsibility initiatives. These elements are all critical for assessing the readiness of public companies in Ethiopia. To conduct this analysis, a combination of quantitative and qualitative methods was utilized within a descriptive framework. Data was gathered from both primary and secondary sources using structured and open-ended questionnaires, as well as published materials. The sampling technique involved selecting 22 banks from a pool of 32 operational banks, intentionally excluding new entrants, commercial, and development banks. Additionally, the study included 17 out of 18 insurance companies, with the Ethiopian Insurance Corporation and the Commercial Bank of Ethiopia omitted from the sample due to a strategic policy decision, rather than any governance-related issue tied to their IPO readiness. The analysis of microfinance institutions concentrated on the top 10 organizations with the strongest capital bases, using performance metrics such as return on equity and revenue growth over the past five years. The data analysis involved descriptive statistics, including frequency counts, percentages, tables, mean scores, and standard deviations, using SPSS version 27. The findings revealed that several areas received moderate ratings, underscoring a need for strategic enhancements in corporate governance practices. These improvements are crucial for enhancing IPO readiness in Ethiopia’s financial sector, ensuring that organizations are well-prepared to navigate the complexities of going public and meet the expectations of prospective investors
Assessment of Ethiopia's Foreign Exchange Reform Policies: Successes, Challenges and Opportunities
(Addis Ababa University, 2025-09) Jebessa Merga; Dakito Alemu (PhD)
This study An Assessment of ethiopian foreign exchange reform policy evaluates the recent foreign exchange reform policies adopted in Ethiopia, focusing on its successes, challenges, and potential opportunities. The reform was introduced in July 2024, aiming to equalize the official exchange rate with black-market exchange rates, improving foreign currency reserves, and enhancing export competitiveness and attracting foreign direct investments (FDI). The study adopted A qualitative and descriptive research methods, the primary data for this study were collected through structured questionary from key stakeholders like, Importers/Exporters investors and National bank of ethiopia (NBE) employees based on their relevance’s and experiences on foreign exchange reforms, and secondary data were collected from institutional reports and macroeconomic indicators published by the National Bank of Ethiopia and international agencies., the study compared the trends of a key economic indicator before and after the reforms to measure the impact of the reforms. The data analysis after the implementation of reform shows a significant improvement in foreign currency reserves, Similarly, there was a tangible reduction in the gap between the official and Black-market exchange rates, Foreign direct investment shows dramatical change which nearly doubled. However, the reform implementation also faced substantial challenges. including, initial foreign currency shortages, limited access to foreign currency for importers and weak institutional capacity which undermine the reforms’ effectiveness. In addition to the challenges, the study also identified potential Opportunities that help long term economic transformation including leveraging digital financial technologies to modernize foreign currency transactions and expanding public-private partnerships to boost export diversification are among the opportunities. The study concludes that whereas the reform shows significant improvements in all aspects, its sustainability depends on complementary actions, including strengthening institutional capacities, enhanced export diversification, adopting digital financial technologies and strengthened financial sector governance.
Assessment of Factors Influencing Bond Market Development in Developing Countries: The Case of Ethiopia
(Addis Ababa University, 2024-10) Awgichew Abiye; Dakito Alemu (PhD)
The development of a robust bond market is crucial for the advancement of the financial sector and the overall economic growth of a country. The aim of this research was to explore the key factors influencing the development of bond market in Ethiopia. The study employed a quantitative research approach to examine and describe the political, economical, regulatory, infrastructure and intermediaries and investors’ base dimensions based on the data collected through survey method. The study was conducted over 130 respondents from government organizations, national and international financial institutions and bond market consultants. The data was collected using 5-point Liker scale questionnaire and purposive sampling technique. The findings highlight that political instability, macroeconomic volatility, and inadequate infrastructure are unfavorable for the development of the bond market in Ethiopia. The study also reveals positive aspects, such as the presence of regulatory frameworks promoting market integrity and transparency, but emphasizes the need for further reforms and investments. Specific recommendations include implementing political and economic reforms, enhancing regulatory independence, investing in modern market infrastructure, and promoting a diverse investor base. By addressing these challenges and leveraging identified opportunities, Ethiopia can create a vibrant bond market that contributes to economic stability and growth. This paper provides policymakers, regulators, and market participants with actionable insights and strategies for fostering a resilient bond market in Ethiopia. Key Words: Bond market, Bond market development, Bond market in Ethiopia, Factors influencing bond market development
Assessment of Foreign Exchange Risk Management in Ethiopian Banking Sector
(Addis Ababa University, 2025-09) Frew Abebe; Meshesha Deme (PhD)
This study assesses foreign exchange (FX) risk management practices within the Ethiopian banking sector, focusing on selected commercial banks amid a changing regulatory and economic environment. The analysis is motivated by the persistent depreciation of the Ethiopian Birr and the liberalization reforms introduced by the National Bank of Ethiopia (NBE) in 2024. The research investigates how banks identify, assess, and mitigate FX risks, particularly transaction, translation, and economic exposures,while considering the effects of policy reforms and the emergence of independent private forex bureaus. A mixed-methods research approach was used, combining structured Likert-scale questionnaires with open-ended responses from 90 professionals across six major banks. Quantitative data were analyzed using descriptive statistics via SPSS, while qualitative responses were reviewed thematically. The findings show that although banks have established internal control frameworks, regular training, and risk identification mechanisms, they face challenges including limited hedging instruments, policy uncertainty, and market inefficiencies. The introduction of private forex bureaus has added complexity to FX risk, raising concerns around regulatory oversight and market fragmentation. The study concludes that Ethiopian banks are actively managing FX risks, but significant improvements are needed, particularly the adoption of hedging tools, enhanced NBE oversight, and modernization of treasury operations. These measures are essential for navigating economic reforms and maintaining financial stability in a liberalizing foreign exchange environment.
Assessment of Internal Control Effectiveness of Commercial Banks in Ethiopia
(Addis Ababa University, 2025-08) Moa Kedida; Dakito Alemu (PhD)
This study assesses of the internal control in Ethiopian commercial banks, emphasizing their role in ensuring financial sustainability. Focusing on 10 out of 30 banks categorized by size, the research employed a descriptive design and collected primary data via questionnaires from 226 staff (91% response rate) across key departments, analyzed using SPSS version 27. Findings revealed that while internal controls aligned with the COSO Framework were generally effective, effectiveness varied among banks, offering insights for improvement in enhancing overall effectiveness of internal control due to the nature of the riskiness of the banking sectors and its impact on financial performance.
Assessment of Operational Functions of the Ethiopian Deposit Insurance Fund
(Addis Ababa University, 2025-09) Mekdes Gizaw; Dakito Alemu (PhD)
This study is done for assessment of Operational Functions of the Ethiopian Deposit Insurance Fund which was established in 2023 to strengthen financial stability and protect depositors. By Focusing on four core functions of the fund—premium setting mechanism, fund management, fund sufficiency, and public awareness—the research employed a quantitative research approach by collecting data via structured questionnaires from 80 banking, microfinance, and EDIF professionals in Addis Ababa and an interview was done with one of EDIF Director. The researcher used descriptive and narrative analysis methods to analyze the data collected. The results of the descriptive analysis reveals moderate confidence in EDIF’s premium setting mechanism with mean score: 3.24, though concerns persist about its capacity to discourage risky bank behavior. Fund management practices (mean: 3.12) are viewed carefully, with transparency and governance independence flagged for improvement. Fund sufficiency (mean: 3.08) faces skepticism regarding adequacy for crisis response. Critically, public awareness (mean: 3.15) is underdeveloped, with weak communication on coverage limits (mean: 2.47) undermining trust. As per the interview with one of the directors, the EDIF has involved in its operations since its establishment, elaborated why it has employed flat rate of premium settings. Points out its strengths and weaknesses and has planned to by a pay box plus role in the near future to protect the financial sector of the economy and take part in the developing the country’s economy. The study concludes that while EDIF aligns broadly with its mandate, strategic enhancements in risk-based premiums, governance transparency, crisis funding strategies, and public outreach are imperative to strengthen its role in Ethiopia’s financial sector safety. Recommendations include adopting dynamic premium models, proactive disclosure protocols, and nationwide awareness
Assessment of Risk Management Practice in Ethiopian Commercial Banks
(Addis Ababa University, 2024-02) Segni Teshome; Tenkire Seyfu (PhD)
The purpose of this research is to “assess the risk management practices of Ethiopian commercial banks. The study is used descriptive survey method and applies a mixed method research strategy for each stratify as representative sample by taking the quantitative method as major component while the qualitative method plays a supplementary role. Data was collected from purposely selected commercial banks permanent staff and analysis was carried out using descriptive statistics supporting by SPSS v 23. Based on the descriptive and analytical analyses results of the questionnaire data, Likewise, the overall usefulness of the risk management practices in selected banks found well prefund by the managing risk based on the empirical data analysis. This thesis unveils higher mean of agreement between the managing market risk and the risk management practices. These results indicate that the managing liquidity risk is also another valuable aspect to improve the usefulness of the risk management practices of selected commercial banks. Furthermore, the descriptive statistics result stated that managing liquidity risk with the risk management practices has been found and endorses that it is important for the management to give more consideration to deal with the liquidity risk in order to bring improvement in the risk management practices of all banks. This study further confirms the role of managing operational risk in the whole banking risk management approach and has found moderates of implementations of the managing operational risk and the risk management practices in selected commercial banks is strongly minimized its risk. The main conclusions of this paper are selected banks should develop a common understanding about the strategy, policy and procedures across the bank and under no circumstance should the bank violate the limit set by NBE and finally prepare training for risk related staffs to manage risk effectively and efficiently. Therefore, the banking sector and other related sectors should be introduced with the necessary work to be completed on this subject, nonetheless by making a start with the determination of the road maps and national initiatives. Key words: Risk Management Practice, Basel principles, selected commercial Banks,
Benefit of Crypto Mining: The Case of Ethiopia
(Addis Ababa University, 2025-09) Tigist Kebede; Mengistu Bogale (PhD)
This study examines the potential benefits of cryptocurrency mining in the context of Ethiopia. Using an exploratory research design and a qualitative approach, the study focused on the experiences and economic contributions of all foreign companies officially registered for crypto mining in the country. Both primary and secondary data were collected through semi-structured interviews and document analysis. The research was conducted throughout 2024, following the official launch of crypto mining operations in Ethiopia. Data were analyzed using content narrative methods to capture the emerging themes and lived experiences of company representatives. The findings revealed that crypto mining has begun to play a significant role in the Ethiopian economy by attracting foreign direct investment, creating job opportunities, and stimulating infrastructure development, particularly in the energy and digital sectors. Several companies reported efficient use of surplus hydroelectric power, while others highlighted challenges such as policy uncertainty, internet connectivity issues, and logistical constraints. Overall, the study concluded that while crypto mining in Ethiopia is still in its early stages, it holds considerable potential to contribute to national development goals if supported by clear regulations, public private collaboration, and sustainable energy practices.
Capital Market Operation in Ethiopia: Potential Challenges and Opportunities
(Addis Ababa University, 2025-09) Kalkidan Daniel; Tenkir Seifu (PhD)
This study examines the operational challenges and challenges that exist in the capital market formulation in Ethiopia, a country that is implementing significant financial reforms but has no well-established capital market. The study aims to assess the preparedness of regulatory, institutional, and technological infrastructures, government, private financial institutions, and the academia. With a descriptive research design, the research collected both quantitative and qualitative data employing structured questionnaires and semi-structured interviews. Under the questionnaires, 137 of the respondents belonging to regulatory authorities, the Ethiopian Securities Exchange (ESX), private commercial banks, trainees at the School of Commerce (SOC), and university researchers took part. In addition, five qualitative interviews were also gathered from ESX's senior experts and private banks with finance, investment, and advisory capabilities. Evidence shows that the capital market infrastructural setup in Ethiopia continues to exist and is plagued by such low-level legal structures, technology platforms, financial literacy, institutional coordination, and small professional numbers. The prevalence of the reality of there being no functioning stock exchange and restricted access to information regarding the market. Yet, the study identifies potential opportunities like significant government support, establishment of the Ethiopian Capital Market Authority (ECMA), and the growing interests of institutional stakeholders. The study concludes with a suggestion for the formal launching of a stock exchange, investment in electronic trading platforms with a focus on targeted investment, promotion of financial literacy, tax benefits, and stronger collaboration between financial institutions, regulatory bodies, and academia to have an efficient and sustainable capital market in Ethiopia.
Comparing Credit risk Determinants: Interest free banks VS Conventional Banks in Ethiopia
(Addis Ababa University, 2025-08) Anwar Nurhsien; Tenkir Seifu (PhD)
This study utilized secondary panel data collected from 80–100% of Ethiopian conventional and Interest free banks, analyzed using a fixed effects regression model in E-Views, guided by the Hausman test results. The research aimed to compare the determinants of credit risk (measured as Non-Performing Loans, or NPL) for both conventional and Interest free banks in Ethiopia. Based on empirical and theoretical reviews, it was hypothesized that NPL would exhibit:  Positive significant relationships with real interest rate and credit growth rate.  Negative significant relationships with GDP growth rate, capital adequacy ratio, net interest margin, income diversification, and return on assets.  No significant relationship with bank size and market concentration ratio, for both banking models. Key findings: For conventional banks, the credit growth rate had a positive significant relationship with NPL. Conversely, return on assets, net interest margin, GDP growth rate, and bank size exhibited negative significant relationships. The market concentration ratio showed no significant relationship with NPL, confirming expectations. However, variables such as real interest rate, capital adequacy ratio, and income diversification unexpectedly lacked significant relationships with NPL. For Interest free banks, real interest rate and capital adequacy ratio showed positive significant relationships, while bank size had a negative significant relationship with NPL. As anticipated, the market concentration ratio demonstrated no significant relationship. However, other variables, including GDP growth rate, credit growth rate, net interest margin, income diversification, and return on assets, did not display significant relationships with NPL, contrary to initial expectations. These results highlight both similarities and differences in the determinants of credit risk for Interest free and conventional banks. Variations can be attributed to differences in economic environments, banking practices, and regulatory frameworks. The findings offer valuable insights for policymakers to consider when designing policies and regulations for the banking sector.
Determinants of Agricultural Loan by Commercial Banks in Ethiopia: A Case of Three Selected Commercial Banks
(Addis Ababa University, 2025-10) Ayenew Negusse; Dakito Alemu (PhD)
This study examines the key factors influencing agricultural lending by commercial banks in Ethiopia, a sector vital to the economy yet underserved financially. Using survey data from credit officers and analysts, it analyzes seven dimensions—ranging from bank-specific and borrower-specific factors to broader economic, regulatory, and environmental conditions—through multiple linear regression. The findings show that bank-specific factors, risk assessment and management, political and institutional conditions, and environmental and climate factors significantly impact lending decisions, while borrower characteristics, regulatory frameworks, and economic indicators are less influential. The study concludes that institutional capacity and external macro-level factors play a greater role in shaping agricultural finance than individual borrower attributes, highlighting the need for stronger institutional frameworks, risk-sharing mechanisms, and targeted policy reforms to enhance credit access in the agricultural sector
Determinants of Audit Fee Pricing: A Case Study of Ethiopian Audit Firms
(Addis Ababa University, 2025-09) Birhanu Zenu; Tesfa Nega (PhD)
This study investigates the key determinants influencing audit fee structures among audit firms operating in Ethiopia. In the context of growing expectations for accountability and transparency within financial reporting, the research seeks to provide empirical evidence on how various client-specific and auditor-related factors impact audit pricing decisions. A structured questionnaire was distributed to a sample of 145 audit professionals, and a quantitative research approach was adopted for data analysis. The methodology involved the application of descriptive statistics, correlation analysis, and multiple linear regression to assess the relationship between audit fees and five main variables: client size, client risk, client complexity, auditor reputation, and market competition. The analysis yielded significant findings, indicating that client risk, complexity, auditor reputation, and competitive market forces have a statistically significant and positive effect on audit fees. These results suggest that audit firms in Ethiopia systematically adjust their pricing based on higher levels of perceived risk, operational complexity, reputational strength, and market competitiveness. Although client size demonstrated a positive correlation with audit fees, its influence was not statistically significant within the model. The robustness of the regression results was confirmed through diagnostic tests, all of which indicated compliance with the classical assumptions of linear regression ensuring the reliability and validity of the statistical inferences. These findings align with existing international research on audit fee determinants, thereby reinforcing their relevance in the Ethiopian context. The study provides practical implications for various stakeholders, including audit firms, regulators, and policymakers. Specifically, it emphasizes the need for audit firms to adopt more structured, transparent, and risk-based fee-setting practices. Additionally, it highlights the importance of regulatory guidance that considers market conditions and audit complexity to promote fair pricing and audit quality. Future research is encouraged to broaden the scope by incorporating additional influencing variables and employing longitudinal or panel data methods to capture trends and changes in audit pricing over time.
Determinants of Bank Liquidity Risk; Evidence From Commercial Banks in Ethiopia
(Addis Ababa University, 2025-08) Mihiret Yohannes; Tenkire Seyfu (PhD)
This study analyzes the macroeconomic and bank-specific factors influencing commercial banks' liquidity risk in Ethiopia between 2015 and 2024. Using annual regression analysis and panel data techniques—excluding and including fixed effects, random effects, and dynamic panel models—the study tests the influence of such variables as growth in loans, net interest income, capital adequacy, operational inefficiency, inflation rate, and GDP growth on banks' liquidity. The results pinpoint loan expansion as the most consistent and statistically significant determinant of liquidity, with coefficients ranging from 0.0305 to 0.0612 between models, implying that expanding portfolios of loans has a tendency to enhance liquidity. Inflation also positively but less robustly affects liquidity, with significance largely in dynamic models. The rest of the variables, including capital adequacy, net interest margin, operational inefficiency, and growth in GDP, had minimal or statistically zero effects on liquidity risk. Fit measures of the model, particularly during 2021–2024, indicate stronger explanatory ability, suggesting changing economic conditions or better sufficient alignment of financial metrics with liquidity behavior. The research discovers that prudent loan portfolio growth and prudent inflation tracking would be what effective liquidity risk management of the Ethiopian commercial banks would need, as a substitute to overreliance on traditional macroeconomic or balance sheet indicator
Determinants of Dividend Payout Policy in Private Commercial Banks of Ethiopia
(Addis Ababa University, 2025-09) Kifle Workneh; Meshesha Demie (PhD)
This research project was intended to assess the determinants of dividend payout ratio in private commercial banks of Ethiopia. The study considers the impact of seven variables; which are profitability, liquidity, bank growth, previous year dividend, industry growth, inflation and GDP on dividend payout using panel data regression technique with a random effect model between the years 2005 and 2024. The study used data of ten private commercial banks that operate in Ethiopia. The empirical results of the study revealed that liquidity, previous year dividend and GDP have positively affected the dividend payout. On the other hand, firm growth, profitability, industry growth and inflation have negatively affected the dividend payout. Furthermore, the findings of the study revealed that previous year dividend, profit and bank growth have statistically significant impact on banks’ dividend payout. On the basis of the findings of the study, it is recommended that bank managers, bank directors and board of directors need to consider the factors that have an impact on the dividend payout policy in their decisions. Moreover, the academic circle can use this research as reference in their effort of analyzing the determinants of dividend payout ratio in the banking industry and also make decision in their investment
Determinants of Mobile Money Growth: The case of Five Selected East African Countries
(Addis Ababa University, 2025-09) Abay Gebeyaw; Mengistu Bogale (PhD)
In East Africa, mobile money has emerged as a key driver of financial inclusion, enabling individuals without bank accounts to access essential financial services. This study examines the factors that influence the growth of mobile money account in five chosen East African nations, with a particular emphasis on network coverage, mobile device ownership, banking penetration, regulatory policies, and mobile money agents. Utilizing a quantitative research methodology, the study analyzes the connections between independent factors and the rise of mobile money using multiple linear regression analysis in SPSS and secondary data from 2019 to 2023. The result indicates that the availability of mobile money agents, the banking penetration, network coverage, and the percentage of mobile devices ownership all have a positive influence on the number of registered mobile money accounts. The study does discover, however, that the Mobile Money Regulation Index (MMRI) has a notable adverse effect, indicating that too strict rules can prevent uptake. These results emphasize how crucial it is to maintain regulatory framework balance in order to promote innovation and safeguard consumers. The study suggests that governments use flexible regulatory strategies that promote the use of mobile money while upholding security requirements in light of the findings. To increase accessibility, mobile money service providers could use technology infrastructure and grow their agent networks. Future studies should look at consumer behavior while using mobile money in various economic circumstances and investigate the precise elements of regulatory rules that influence its uptake.

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