Business Administration in Finance

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Determinants of Stock Market Investment Intentions in Emerging Economies: The Case of Ethiopia
(Addis Ababa University, 2026-05-22) Elroie Alemseged; Hailemariam G.
Abstract The stock market is believed to be one of the main drivers of economic development across the world. All developed country possesses a stock exchange of their own, which enables corporations to raise capital for expansion besides taking business loans and individuals ownership and wealth creation. This will in turn contribute to the development of industrialization and innovation. Therefore, emerging economies have also been jumping onboard and establishing their stock exchanges to ensure economic development. To ensure that intended outcome is attained, stock exchanges and capital market authorities as well as the wider public needs to drive the stock exchange by having active, ethical and transparent participation. This study examined the cognitive and behavioral antecedents of retail stock market investment intentions in this emerging frontier market. The approach is quantitative, deductive, standardized and the study is based on potential investors of Addis Ababa. Multiple linear regression analysis was performed to assess the effect of four core independent variables: Financial Literacy, Perceived Trustfulness, Alternative Investment Preference, and Information Availability and Awareness. The study is descriptive, having a sample size of 400 and utilized random sampling technique. The hypothesis testing provided results that confirm and contradict previous literatures in behavioural finance. The results saw preference over alternative investment provided highest positive effect on Investment intentions in the stock market, followed by Information availability and awareness, and lastly, financial literacy showed a positively significant effect towards stock market investment intentions. However, perceived trust and governance did not have any significant impact towards stock market investment intentions. The research conclusions provide vital blueprint for policy makers, researchers and practitioners.to successfully mobilize retail capital, the study proposes that the ESX and the Ethiopian Capital Market Authority (ECMA) should put more emphasis on structural accessibility, open-access, easily accessible and informative market data, financial literacy education and the integration of alternative asset frameworks instead of mainly focusing on conventional trust-building campaigns.
Determinants of Non- Performing Loans in Ethiopian Commercial Banks.
(Addis Ababa University, 2026-07-02) Abraham Animut; Dejene Tulu.
Non-Performing Loans (NPLs) present a persistent, systemic challenge to the operational stability, profitability, and credit-mediating capacity of banking institutions globally and within Ethiopia. This study evaluates the macroeconomic, institutional, and political determinants of NPLs within the Ethiopian commercial banking sector by employing a robust mixed-methods triangulation framework. Primary perceptual data was gathered via structured questionnaires from 162 credit professionals, risk managers, and branch executives across ten selected banks. Concurrently, secondary longitudinal panel data spanning a 10-year period (2016–2025) across the same ten commercial banks was modeled utilizing a Linear Mixed Model (LMM) with a First- Order Autoregressive [AR(1)] covariance structure and Huber-White robust standard errors. The descriptive and correlation analyses of the primary data reveal that credit specialists strongly perceive macroeconomic shocks (inflation, exchange rate devaluations, volatile GDP shifts) and political instability as dominant catalysts for borrower defaults. However, the multi-variable econometric panel analysis demonstrates a stark divergence: when controlling for longitudinal dependencies, all external macro-environmental variables become statistically non-significant, whereas internal Credit Risk Management practices emerge as the singular, overwhelmingly dominant determinant of asset quality (β = -1.5705, p < 0.001). A one-unit optimization in internal credit appraisal, underwriting, and post-disbursement tracking yields an estimated 1.57% contraction in the NPL ratio, effectively neutralizing environmental shocks. These findings imply that credit distress in Ethiopia is fundamentally driven by administrative underwriting stringency and governance quality rather than exogenous cyclicality. The paper recommends that commercial banks institutionalize rigorous early-warning diagnostics, decouple underwriting from collateral dependency, and enhance sectoral diversification, while regulatory organs should tighten macroprudential oversight on internal bank asset classifications.
The Effect of Organizational Justice on Happiness at Work: The Mediating Role of Work Motivation and Professional Performance at Care Ethiopia.
(Addis Ababa University, 2026-06-02) Lidya Getachew; Zelalem G/Tsadik
The purpose of this research was to investigate the effect of organizational justice on happiness at work among CARE Ethiopia's employees with work motivation and professional performance as mediating factors. The study aimed at understanding how the perceptions of fairness may affect employee happiness. Quantitative research methodology and cross-sectional study design were used for conducting the research. The information was gathered from the employees using a structured questionnaire. Data analysis was conducted using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method with SmartPLS 4 software. The study found that organizational justice has no significant direct effect on happiness at work. However, organizational justice has a significant positive effect on work motivation and professional performance, and both work motivation and professional performance significantly affect happiness at work. These results indicate that work motivation and professional performance mediate the relationship between organizational justice and happiness at work. Therefore, it can be concluded that employee happiness depends more on motivation and performance than directly on organizational justice perception. The findings of this study indicate that increasing organizational justice can positively affect the level of employee happiness because of motivating employees and improving their professional performance.
The Effect of Loan Monitoring Practices on Loan Repayment Performance: Evidence from Selected Ethiopian Private Banks
(Addis Ababa University, 2026-06-02) Yanit Ketema; Dejene Tulu
This study evaluates the impact of post-disbursement monitoring practices on loan repayment performance within the Ethiopian private banking sector, focusing on Awash Bank S.C. and Dashen Bank S.C. It addresses the critical operational challenge of credit risk management by assessing how different monitoring methods influence credit recovery. An explanatory, cross-sectional research design was deployed, utilizing a quantitative approach to analyze survey data collected from credit professionals. Diagnostic tests were conducted to verify data integrity prior to executing ordinary least squares multiple linear regression and analysis of variance. The empirical model demonstrated high explanatory power, accounting for a substantial majority of the variance observed in loan repayment performance. The regression analysis revealed that active loan covenant tracking serves as the primary engine for credit discipline, exhibiting the strongest positive predictive power. Collaborative borrower advisory services also share a significant positive relationship with portfolio quality. Conversely, static internal credit risk ratings show a non-significant independent effect on active recovery, while tracking financial statement timeliness yields an unexpected inverse relationship with repayment success, exposing a reliance on administrative compliance schedules rather than substantive cash-flow verification. Based on these insights, it is suggested that private banks transition toward automated dynamic covenant compliance systems and build dedicated business development advisory units to proactively minimize defaults. Furthermore, internal grading frameworks could be re-engineered from static pre- disbursement baselines into real-time behavioral scoring models driven by live account activities
The Effect of Internal Control on Financial Performance of Bgi Ethiopia: the Mediating Role of Balanced Scorecard
(A.A.U, 2025-06-11) Tsionawit Aweke; Degefe Duressa
This study investigates the effect of internal control on the financial performance of BGI Ethiopia and explores the mediating role of the Balanced Scorecard (BSC). Rooted in agency theory, resource-based view, and contingency theory, the study analyzes the interrelationship between control environment, risk assessment, control activities, information and communication, and monitoring activities as components of internal control. Financial performance is assessed using quantitative indicators such as profitability, efficiency, and strategic alignment. The research employs a quantitative approach with a cross-sectional design and utilizes structured questionnaires distributed to 297 employees of BGI Ethiopia. Then Regression and mediation analyses using SPSS were conducted to test the hypothesized relationships. The results indicate that internal control significantly influences financial performance and that BSC partially mediates this relationship. The BSC’s four perspectives including financial, customer, internal process, and learning and growth and translate strategic objectives into measurable outcomes. The descriptive and explanatory type of research is purposely to provide an accurate representation of observation and mapping a piece of ground of particular observable facts. Findings suggest that integrating internal control systems with strategic management tools like BSC enhances performance and accountability. The variance accounted for (VAF) is 58.93%, indicating partial mediation BSC mediates significantly between IC and FP is accepted. Empirical research supports that robust internal controls help align managerial behavior with shareholder value maximization, thereby improving financial performance This study provides practical implications for business managers, scholars, and policymakers by highlighting the strategic value of effective internal controls and performance measurement frameworks in improving organizational outcomes. In addition to that, it provides a Recommendation based on conclusion.
A Research Proposal on Assessing the Automated Teller Machine (Atm) Service Quality of Commercial Bank of Ethiopia (CBE) In Addis Ababa
(AAU., 2025-01-15) Hana Atkaw; Abebe Y.
This research aims to evaluate the quality of Automated Teller Machine (ATM) services offered by the Commercial Bank of Ethiopia (CBE) in Addis Ababa. The primary objective is to analyze customer perceptions and satisfaction levels regarding CBE’s ATM services, ultimately striving to enhance service quality and boost customer retention. The study provides a comprehensive understanding of user experiences by examining key factors such as reliability, responsiveness, ease of use, security and privacy, convenience, and overall service fulfillment. A mixed-methods approach was employed to collect data, incorporating both surveys and interviews with customers in Addis Ababa. The findings highlight the significant role of improving ATM service quality in fostering customer satisfaction and loyalty. This study not only provides actionable insights for CBE to improve its service offerings, but it also proposes tactics for improving the whole banking experience for customers in Ethiopia. The study included 384 respondents chosen using Kothari's (2004) sample size selection technique, with a fantastic return rate of 93.75% from 360 successfully returned questionnaires, which formed the foundation of the analysis and interpretation. The study found that overall customer satisfaction obtained a modest rating (mean score: 3.5984), indicating area for development in terms of ease and overall satisfaction with CBE services. To improve the CBE's ATM services in Addis Ababa, constant monitoring, user-friendly design, high security, and increased accessibility through better placement and support should be addressed
Determinants of Consumer Buying Decision for Pharmaceutical Products: Evidence from Community Pharmacies in Addis Ababa
(A.A.U, 2025-01-01) Ehitemariam Molla; Yohannes Werkaferahu
Pharmaceutical products are indispensable in safeguarding public health, yet insights on the specific factors shaping consumer buying decision in Ethiopia remain insufficient, particularly concerning prescription-only and over-the-counter medications. This gap is salient in Addis Ababa, where dispensing practices frequently deviate from established guidelines and consumers often rely on informal channels. Accordingly, this study investigated key determinants—including word of mouth, drug availability, country of origin, and price—that influence purchasing decisions for pharmaceutical products. Drawing on a two-stage sampling approach, a simple random sample of 279 community pharmacies was selected from a total of 1,024 registered pharmacies in Addis Ababa. Subsequently, 384 consumer respondents were conveniently sampled from these pharmacies, yielding quantitative data on sociodemographic attributes, health literacy, and product-related preferences. A structured survey instrument was administered, and the resulting data were analyzed via descriptive statistics and a binary logistic regression model. The results highlight that demographic factor (e.g., age, gender, marital status, education, and income), product attributes (brand reputation, availability, and perceived price-quality relationship), and informational sources (word of mouth, online reviews, and health literacy) significantly shape purchase intentions. Drug availability emerged as the strongest predictor, while other variables— such as marital status and word of mouth—also substantially impacted the likelihood of purchase. In response to these findings, the study recommends (i) improving pharmacy accessibility and supply chain management to address stockouts, (ii) crafting pricing strategies that balance consumers’ budget constraints with perceptions of quality, and (iii) enhancing public health literacy and leveraging reputable digital platforms to disseminate accurate pharmaceutical information. By incorporating these recommendations, stakeholders can foster a more consumeroriented, equitable, and efficient pharmaceutical market in Addis Ababa, thereby better aligning the supply of essential medications with local healthcare needs Key Words: Consumer behavior, Consumer buying decision, Community pharmacy, OTC, Prescription drugs
Performance Assessment of Interest Free Banking Windows of Private Commercial Banks
(AAU, 2025-06-01) Dagmawit Tsegaye; Alem Hagos
This research evaluated the performance of private commercial banks' IFB windows in Ethiopia that are actively involved in IFB services. The research aimed at examining the operating models, offerings, financial performance, and Sharia compliance of IFB windows, relative to events during the early stages of application to the period 2020 to 2024. The main objective was to examine the financial performance of IFB windows, using Return on Assets (ROA) as the key measure, and the profitability determinants. Only five of the 32 private commercial banks were included in the analysis due to the presence of regular and independent financial data of IFB operations. Panel data was utilized and a Random Effects regression model was employed to analyze the effect of key variables such as Deposit Mobilization, Management Efficiency, Operating Efficiency, Bank Size, and Capital Adequacy on IFB profitability. Findings show wide differences in performance across the listed banks. The Cooperative Bank of Oromia led in profitability, mobilization of deposits, and asset size but was marred by operational inefficiency. Dashen Bank showed good cost control and stable growth of deposits and low capital adequacy. Oromia Bank showed balanced performance while Wegagen Bank lagged behind in most of the indicators despite comparatively efficient operations. Hibret Bank, though in smaller magnitude, demonstrated a good trend of profit and cost management. Deposit Mobilization, Management Efficiency, Bank Size, and Capital Adequacy were revealed to have a statistically significant and positive relationship with ROA by regression analysis. Operational Efficiency and macroeconomic factors such as exchange rate, GDP, and inflation, however, had no statistically significant relation with profitability. The study contributes to the dearth of empirical studies on IFB performance in Ethiopia and offers policy inputs for policymakers, bank managers, and regulators. It also underscores the need for bank-level strategic reforms to render IFB operations profitable and sustainable in the country.
The Impact foJoob Satisfaction on Employee Job Performance: (a Case Study of Awash Bank at Addis- Ababa)
(A,A.U, 2025-06-01) Israel Ketsela; DR. MEBAT
The study explored how job satisfaction influences the performance of employees at Awash Bank,located in Addis Ababa. The main objective of this paper was to understand the relationship between how satisfied employees are with their jobs and how well they perform in the workplace.The paper employed combined descriptive and exploratory research designs and utilized a structured questionnaire to collect data from employees, managers, and human resource personnel. To comprehensively address the study objectives and answers the study questions, the student researcher adopted a mixed research approach. In order to attain the objective of the study and answers the research questions, the researcher adopted a mixed research approach. The target populations of the study were staff members from various departments such as customer service, credit analysis, operations, and administration at Awash Bank, Addis Ababa. The target population of the study was 255 out of which 144 were samples in the study. The study made use of a mix of probability and non-probability sampling methods. The student researcher employed both primary and secondary data source tools. The refined data was analyzed using descriptive statistics involving percentages and frequency distribution, tables and charts were used to give a summary of data and displayed in a meaningful manner. To analyze the collected data in line with the objective of the research undertaking, statistical procedures were carried out using SPSS software. In light of the present findings, it can be concluded that job satisfaction plays in shaping employee performance at Awash Bank. The analysis of the questionnaire responses reveals that when employees feel fairly compensated, supported by supervisors, and offered opportunities for professional growth, their overall satisfaction improves, which in turn positively influences their job performance. On the other hand the research findings emphasized a lack of consistent recognition of employee efforts. Therefore Awash Bank is advised to adopt a formal recognition system that acknowledges individual and team achievements regularly. Recognition can take the form of awards, bonuses, career progression, or public acknowledgment, all of which significantly contribute to motivation and satisfaction and other pertinent recommendations are included in the study. Key words: Job Satisfaction, Employee Performance, Employee Motivation
Factors Affecting Banks Liquidity: Emperical Evidence from Selected Ethiopian Private Commercial Banks
(A.A.U, 2026-02-02) Atnanaw Sewhunegn; Abebe Yitayew
Liquidity is one of the major concerns for private commercial banks in Ethiopia and holding the optimum level of liquidity is crucial. Since many of the empirical studies carried out on the commercial banking industry of Ethiopia were mainly focused on examinations of factors influencing the profitability of banks, and limited attention was given to consider the bank’s liquidity and its determinants the objective of this study was to identify the determinants of liquidity position of private commercial banks in Ethiopia. Quantitative research approach and explanatory design adopted to show the cause and effect relationship between the dependent and independent variables. Balance panel data was collected from a sample of eight private commercial banks in Ethiopia from 2018 to 2024 by using purposive technique. Both bank specific and macroeconomic variables were analyzed using both inferential (balanced panel pooled effect regression model) and descriptive statistic (both graphical and summary statistics) with the aid of Stata19.5 software. The dependent variable (bank’s liquidity) measured as the ratio of total customers loans and advance to its total deposit. The findings of the study revealed that at 5% significance level among the bank specific factors bank size and non-performing loan have negative and statistically significant impact on liquidity; while, profitability and capital adequacy ratio have positive and statistically significant impact on liquidity of Ethiopian private commercial banks. On other hand, from the macro-economic level factors except the foreign exchange rate all variables (GDP, CPI and IRM) have negative and statistically significant impact on private commercial banks liquidity. However; loan growth, deposit growth and foreign exchange rate have no statistically significant effect on the liquidly of Ethiopian private commercial banks. As the ratio of loans and advances to deposit LR of 0.796, indicated that the sampled banks on average does not offered loans to their clients almost 20.38% (greater than the threshold amount of 15% set by NBE) which implies that as far as considering the quantitative factors considered the sampled commercial banks have moderate liquidity risk. Finally, the study provides useful insights for interested parties on the liquidity levels of Ethiopian commercial banks and their determinants and contributes to the scarce empirical evidence. Keywords: Determinants of Liquidity, Ethiopian Private Commercial Banks, Liquidity Ratio, balanced panel data regression analysis.
"Effect of Supply Chain Management Practices on Organizational Performance: The Case of Ethiopian Pharmaceutical Manufacturing"
(A.A.U, 2026-01-03) Meron Samuel; Hailemariam Gebremichael; Yared Asrat
This research focused on the effect of supply chain management practices on organizational performance for the Ethiopian Pharmaceutical Manufacturing Industry. A census survey was conducted with 243 supply chain employees. The key variables examined in this study included supplier management, customer management, information exchange, and internal operations. This study utilized a mixed methodology, including both a quantitative survey and a qualitative interview, to address these factors. Descriptive and explanatory analysis methods were utilized to analyse the data. Regression and correlation analysis and thematic analysis were employed to identify relationships between variables and to determine if specific variables may cause others to exist. Overall, the results indicate that the proper management of suppliers and customers, the dissemination of quality information, and rational processes within organizations play a major role in increasing the performance of organizations, which is demonstrated through the increased efficiency, customer satisfaction, and competitive advantage in the marketplace. This study found that strategic alliance, clear communication, and continuous process improvement are necessary in achieving optimal performance in pharmaceutical supply chain systems. Keywords: Supply Chain Management, Organization Performance, Pharmaceutical Industry.
The Effect of Credit Risk Management on The Financial Performance of Commercial Banks: The Case of Selected Private Commercial Banks In Ethiopia
(A.A.U, 2026-01-01) Tewabe Simachew; Yared Asrat; Dejene Tulu; Gebre Sorsa
Commercial banks play a vital role in economic development through financial intermediation.However, lending activities expose banks to credit risk, which is the most dominant risk in banking. The primary objective of this study is to examine the effect of credit risk management on the financial performance of private commercial banks in Ethiopia. The study used secondary data collected from the audited annual reports of thirteen purposively selected private commercial banks for a period of ten years from 2015 to 2024, for a total of 130 observations. In the study, a quantitative research methodology was adopted with the use of the purposive sampling technique and exploratory research design. The data were analyzed with the EView 12 software in a random-effect regression model. ROA was used as the dependent variable to proxy financial performance. The independent variables considered were NPLR, CAR, LDR, LLPR, LTAR, CER, CIR, and LG. The study found that the capital adequacy ratio (CAR), loan-todeposit ratio (LDR), and credit interest income ratio (CIR) positively influence the return onasset (ROA). On the other hand, non-performing loans ratio (NPLR), loan loss provision ratio (LLPR), loan to total asset ratio (LTAR), and cost efficiency ratio (CER) negatively and significantly influence the return on asset (ROA) of the private commercial banks in Ethiopia. Additionally, found that loan growth (LG) had a positive but statistically insignificant effect on the profitability of private commercial banks in Ethiopia during the study period. The study concluded that credit risk management plays an important role in improving the financial performance of the private commercial banks in Ethiopia. Keywords: Credit Risk Management, Financial performance, Return on Asset
Digital Literacy as a Mediator Between Perceived Usability and Mobile Banking Adoption in Addis Ababa
(A.A.U, 2026-01-02) Selam Leykun; Abebe Yitayew
Adoption of mobile banking is shaped by usability, trust, security and digital literacy. However, current studies are centered on the conventional technology acceptance models without considering digital literacy as a mediating factor in mobile banking usability and adoption. Moreover, the previous works being carried on mobile banking adoption of Ethiopia have only focused on technological infrastructure and convenient of using banking services, but not taking into account barriers from system user such as digital literacy and trust. This study, thus, investigated the mediating role of digital literacy in the relationship between customer-perceived usability and mobile banking adoption, focusing on five major banks in Addis Ababa: Commercial Bank of Ethiopia, Bank of Abyssinia, Awash Bank, Dashen Bank, and Hibret Bank. A quantitative research approach with explanatory design was employed. Primary data collected from 289 respondents through a structured questionnaire were used for analysis. Convenience sampling was applied to ensure access to diverse bank users. Data analysis involved descriptive and inferential statistics, including correlation tests and multiple linear regression. Findings revealed that digital literacy significantly mediates the relationship between usability and adoption, enabling customers to navigate mobile banking applications and conduct financial transactions with confidence. However, adoption barriers persist, particularly in areas of security transparency and fraud mitigation. The study underscores the need for banks to integrate digital literacy programs with usability enhancements to foster greater adoption. Keywords: Digital Literacy, Digital Competency, Financial Services Innovation, Mobile Banking Adoption, Mobile Banking Usability, Security Concerns, Technology Acceptance
The Effect of leadership Styles on Employees’ Innovations: A Case of Berhanena Selam Printing Enterprise
(A.A.U, 2024-06-14) Girma Ali; Desalegn Amlaku
This study looked into how innovation is impacted by different leadership philosophies at Berhanena Selam Printing Enterprise. To do this, the study's descriptive research approach was employed. It was purely quantitative. 200 of the 403 employees were chosen as responders; the research participants were chosen using a systematic random selection technique, yielding an 84.5% response rate. The information was gathered using a well-structured online survey. The study employed regression and correlation analysis to search for potential relationships between the independent and dependent variables. The study reveals that leadership styles play a crucial role in driving innovation among employees. Specifically, laissez-faire leadership consistently shows a positive impact across all dimensions of innovation (resource, process, organizational culture, and operational intelligence). Authoritative leadership also positively influences resource utilization, while transformational leadership enhances process innovation. Conversely, transactional leadership generally has a negative effect, particularly on process and organizational culture innovation. The findings suggest that laissez-faire and transformational leadership are particularly effective in fostering innovation across various dimensions. By adapting leadership strategies to promote these styles, organizations can create a more innovative and dynamic workplace. Conversely, minimizing reliance on transactional leadership approaches can help prevent the stifling of innovative efforts. Through strategic leadership development, organizations can enhance their overall innovation capabilities, leading to sustainable growth and competitive advantage. Keywords: Transactional leadership, Transformational leadership style, Autocratic leadership, laissez-faire leadership, innovation.
Factor Affecting Profitability of Banks in Ethiopia: The Case of Selected Commerial Banks
(A.A.U, 2024-06-13) Afomiya Abebe; Abebe Yitayew
This study aims to examine the impact of capital adequateness liquidity, and asset quality on the profitability of Ethiopian banks from 2013 to 2022. The study employed a quantitative research design and collected data through Secondary data were gathered from the annual audited financial statements of selected banks from NBE in order to meet the study's objectives. Purposive sampling was employed in the study, with Ethiopian commercial banks serving as the study population. Correlation and OLS regression analysis were utilized for inferential data analysis. Liquidity, capital adequacy, and asset quality were the study's independent variables. Return on asset (ROA) was the dependent variable used to determine profitability. The study's model result showed that while liquidity has a statistically significant negative impact on ROA, asset quality and capital adequacy have positive, statistically significant effects on ROA. The study suggests that more research be done on the qualitative relationship that asset quality, capital adequacy, and liquidity have with bank profitability. Future studies may be able to investigate the effects of asset quality, capital adequacy, and liquidity on profitability. In order to uncover hidden insights into the relationship that interacts with bank profitability, future studies involve interviewing significant informants in the banking sector. Key Words: Bank of Ethiopia, Asset Quality, Capital Adequacy, Liquidity, Profitability
Analysis of Factors Influencing Business Performance of Technology Startup Companies: The Case of Addis Ababa
(A.A.U, 2024-05-16) Abenezer Workneh; Workneh Kassa
The study aimed to explain the critical factors influencing business performance in technology startups operating in Addis Ababa, using an explanatory research design. The researcher tried to show the causal relationships between entrepreneurial personality traits, management competence, resource factors, networking and business performance. The study provided valuable insights into the interactions among these variables. The research considered the population of 751 active technology companies in Addis Ababa, as per data from the Addis Ababa Technology Bureau (AATB, 2022). A sample size of 261 was determined and primary data obtained was analyzed. Multiple linear regression was used to assess the collective and individual impacts of the predictors on startup success. Results indicated that personality factors, management competence, resource factors, and networking variables were significant predictors of business performance. The model had a 0.644 R squared valued indicating that the model explained 64.4 percent of the variance. The findings suggest that technology startups should focus on enhancing managerial skills, optimizing resource management, and leveraging extensive networking opportunities. This research adds empirical support to existing theories while offering practical guidelines for stakeholders. Key words: Technology Startups, Business Performance, Entrepreneurial Personality Traits, Management Competence, Resource Factors, Networking
Organizational Culture Assessment Using Competitive Value Framework: A Comparative Case Study on Gift Construction and Gift Real Estate
(AAU, 2025-03-20) Kenean Nigatu Belachew; Abebaw Kassie
Organizational culture significantly influences employee behavior, decision-making processes, and overall corporate performance. This study assesses the organizational culture of Gift Construction and Gift Real Estate, two sister companies under the GIFT Business Group, using the Competing Values Framework (CVF). The research aims to identify the dominant and preferred cultural profiles of each company, evaluate cultural alignment, and analyze how perceptions differ among employees and management. The descriptive research employed mixed-methods approach, combining quantitative data from the Organizational Culture Assessment Instrument (OCAI) with qualitative insights from interviews. The findings reveal the similarity and differences between the two organizations. Both Gift Construction and Gift Real Estate exhibit a mix of Clan and Market Cultures. Employees in both organizations express a preference for a stronger Adhocracy culture, indicating a desire for increased innovation and flexibility. The study highlights some cultural gaps and their implications for organizational strategy, collaboration, and operational efficiency. Understanding these cultural dynamics enables leadership to implement targeted interventions that foster alignment, enhance employee engagement, and drive sustainable growth
The Impact of Digitalization on the Profitability of Selected Commercial Banks in Ethiopia
(AAU, 2025-03-24) Alhamdu Abdela Muhajer; Takele F.
The banking sector in Ethiopia is undergoing significant transformation due to the increasing adoption of digital banking services. This thesis investigates the impact of digitalization on the profitability of selected commercial banks in Ethiopia, focusing on key factors such as Automated Teller Machine (ATM) transactions, mobile banking, internet banking, and service excellence. A quantitative research design was employed, utilizing survey data collected from 274 respondents across five major commercial banks: Commercial Bank of Ethiopia, Awash Bank, Dashen Bank, Bank of Abyssinia, and Zemen Bank. The findings reveal that all forms of digital banking services significantly contribute to the profitability of commercial banks. ATM transactions demonstrate the strongest positive correlation with profitability, supported by a p-value of 0.000, indicating high statistical significance. Mobile banking transactions also exhibit a significant positive effect on profitability, with a p-value of 0.002, while internet banking shows a similar trend with a p value of 0.005. Furthermore, the study highlights that digitalization enhances operational excellence and service quality, which positively influence bank profitability, with p-values of 0.004 for both factors. These factors collectively contribute to the financial performance of commercial banks, as measured by Return on Assets (ROA) and Return on Equity (ROE). By leveraging digital technologies, Ethiopian banks can achieve greater operational efficiency, improved service quality, and enhanced profitability in an increasingly competitive financial landscape. The results provide valuable insights for bank management and policymakers, emphasizing the need for continued investment in digital technologies to maintain competitiveness and drive profitability. Future research could explore longitudinal studies tracking the adoption and impact of digital banking services over time, investigate emerging technologies such as artificial intelligence and block-chain, and examine customer experience and satisfaction with digital banking services
The Effect of Telecom Subscribers on Bank's Profitability
(A.A.U, 2023-12-16) Biruk Tilahun; Abebe Yitayew
Telecommunications infrastructure is critical for banks' day-to-day operations. Due to easy access to telecommunication services, online banking transactions have shown a huge increase over the years. Going to bank branch offices is now only for critical issues, as most banking transactions can be held online using different banking applications. Different studies have assessed the effect these applications have on banks' performance like Mobile banking, Internet banking, Mobile money, ATMs, and others. However, limited studies are showing the effects of telecommunication subscribers on banks' performance. This study assessed whether telecommunication subscribers' increase or decrease affects banks' profitability. The study used the last ten years’ financial data of Ethiopia’s private commercial banks. Telecommunication data was collected from Ethio Telecom. The data collected was analyzed by use of descriptive statistics, and statistical software, Stata. The study found that there is no direct effect of telecommunication subscribers' increase on banks' profitability. The study recommended banks continue focusing on creating efficiencies using the telecommunication infrastructure as the increase in telecommunication subscribers by itself will not result in the bank’s profitability. Key Words: Telecommunications, bank profitability, mobile and fixed telecom subscribers, Ethio Telecom
Effect of Working Capital Management on Profitability of Small and Medium Scale Enterprises (SMEs) in Addis Ababa (The Case of Arada Sub Cities)
(A.A.U, 2024-08-17) Yared Hussen; Alem Hagos
The rapid creation and growth of small and medium-sized businesses has emerged as a crucial element of the development objectives of rising nations, Ethiopia included. Despite the increasing prevalence of these organizations, there is a scarcity of study on their working capital management. The objective of this research is to investigate the characteristics that influence the performance of small and medium-sized enterprises in Arada sub-city. It was conducted through a combination of qualitative and quantitative methods. The data collected from the various enterprises were then analyzed to come up with recommendations for improving the working capital management of these firms. Questionnaires were used to collect primary data, and the financial records of the businesses were used to obtain secondary data. 217 SMEs are the target population, and simple random sampling is the sample method used. 155 SMEs in Addis Ababa's Arada Sub Cites provided the data that was gathered. It was utilized to gather data for an experimental impact measurement after 149 valid surveys were returned. Descriptive statistics and quantitative techniques (regression and correlation) were used in the data analysis. The net operating profitability as an independent variable, along with the average collection time, average payment period, cash conversion period, current ratio, debt ratio, and company size as dependent factors, are used to illustrate the differences among working capital management and profitability. The study's conclusions imply that the length of time businesses need to receive their debts, settle their invoices, and gather cash has a detrimental impact on working capital. In addition, the likelihood of sufficient working capital requirements is influenced by the size, current ratio, and financial leverage of the SMEs that are the subject of the study. The study's findings suggest that businesses could need to give their clients longer credit periods, lengthen their cash conversion cycle, and need a longer repayment time. All extensions and cycles must be used to the fullest degree possible to achieve an ideal level of working capital and, if possible, to put into practice a cautious working capital management strategy. Therefore, it is wise to take this study's findings into consideration. When choosing how best to handle their time and cash in order to enhance their job performance. Key words: net operating profitability, small and medium enterprises, working capital management

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