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Item The Practices and Challenges of Foreign Currency Generation in Commercial Bank of Ethiopia(AAU, 2023-05-11) Tofik Rahmeto Issa; Abebe Yitayew (PhD)The main objective of the study is to examine the challenges of foreign currency generation in Commercial Bank of Ethiopia, using primary and secondary data source from a survey of a random sample of 386 respondents/employees. To deal with this, the researcher has used both descriptive and binary logistic regression model as a tool. In the descriptive analysis part the CBE’s share reached as low as 8% in 2020/21 from 32% 2014/15. The remittances that except 2015/16 and 2017/18 its growth rate gradually dropped. In econometrics analysis; internal conflict, absence of foreign currency deposit, less work with development partners and weak employees’ knowhow have a positive significant effect on the challenges of foreign currency generation at 1% level of significance (P<0.01) and makes low generation of foreign currency. Also, work with few industrial parks has a positive significant effect on the challenges of foreign currency generation at 1% level of significance (P<0.05). Few dominated agricultural export and National Bank of Ethiopia’s directives have a negative significant effect on the challenges of foreign currency generation at 1% level of significance (P<0.01). Furthermore, participated in Africa Opportunity and Growth Act, fair charges of money transfer organizations and less intermediaries have a negative significant effect on the challenges of foreign currency generation at 5% level of significance(P<0.05). The researcher has recommended that the government should stop the internal conflict and maintain peace and security in the country and formulate policies that help to participate in Africa Growth and Opportunity and Act. Also, the government should control illegal intermediaries. In addition, the Bank should work with industrial parks and development partner.Item Factors That Affect Deposit Mobilization in Bank of Abyssinia(AAU, 2024-03-23) Yadamnesh Aderaw; Tewodros (Assistant Prof)Deposit mobilization is the collection of cash or funds by a financial institution from the public through its current, savings, fixed, recurring accounts and other specialized schemes. Bank Deposit is affected by both exogenous and endogenous factors. Exogenous can be country specific and bank specific factors. Endogenous factors can be controlled by the banking system. The objective of this study was on factors affecting deposit Mobilization in Bank of Abyssinia using primary data. Purposive sampling technique was used. The study included all grade two, grade three and corporate branches of Abyssinia Bank. Primary data source was used to collect data from Bank of Abyssinia senior management staff. The collected data was entered, coded, and interpreted by using Stastical Package for Social science software 25. Linear regression analysis has been used with 95%CI with p value <0.05.In this study the dependent variable was bank's deposit and independent variables were deposit mobilization strategy, Gross domestic product, Bank profitability and number of branch opened. Different diagnostic tests were used to know whether the model was valid or notItem Determinants of Non-interest Income in Selected Ethiopian Commercial Banks(A.A.U, 2024-06-11) Getawey Gashawbeza; Abebaw Kassie (PhD)This study aims to identify and analyse the determinants of non-interest income (NII) in Ethiopian commercial banks. Specifically, it examines the impact of bank-specific factors, macroeconomic variables, and technological advancements on non-interest income. An explanatory research design with a quantitative approach was employed, utilizing panel data from ten commercial banks in Ethiopia, spanning from 2010 to 2021. Secondary data was collected from internal and external sources, including the National Bank of Ethiopia, the Ministry of Finance, and annual financial reports of the sampled banks. The results indicate that certain bank-specific factors positively and significantly impact non-interest income. Conversely, macroeconomic variables such as GDP growth and inflation rate negatively impact non-interest income. This study provides a comprehensive analysis of the determinants of non-interest income for Ethiopian commercial banks. It highlights the importance of stable funding sources, foreign currency holdings, and macroeconomic conditions. Banks should focus on increasing core deposits, leveraging foreign currency services, and diversifying income streams to mitigate the impacts of economic cycles and inflation. Inflation-adjusted fee structures can help mitigate the erosion of non-interest income. Investments in digital banking services can further enhance non-interest income. Effective risk management remains crucial for maintaining overall financial stability.Item Prospects and Challenges of Foreign Bank Entry on Domestic Banks of Ethiopia(A.A.U, 2024-06-30) Behailua Zerihun Nigusse; Alem Hagos (Phd)Financial liberalization and the entry of foreign banks carry risks as well as benefits. For this reason, it is crucial that regulators manage the process carefully, addressing important cross-cutting issues like how to properly regulate the banking sector both before and after the entry of foreign banks. The main purpose of this study is to investigate the opportunities/benefits and hurdles of foreign entry banks on the domestic banks of Ethiopia. The paper used mixed research approach to address the research question and accomplish the study goal. It relies on only on primary data Descriptive statistics were used to examine the questionnaire data and thematic interpretation was done for the data obtained from interview. The respondents for the study were selected with purposive sampling from ten private banks and one state owned banks (CBE) based on the experience years, National Banks of Ethiopia, representative offices of foreign banks (Standard Bank, Commerz Bank and EXIM Bank of Tanzania) and two institutions (Ethiopian Economic Association and Ethiopian Professional Accountant and Auditor Association). The study finds that financial liberalization and allowing foreign entry banks will result in numerous benefits to financial institutions and overall economy by stimulating the existing domestic banks boosting efficiency, knowledge transfer, using advanced technology, create an opportunity for global market and reduces hard currency problem. On the contrary, the foreign banks are characterized by capital flight, targeting only potential customers and left the residue and engage in complex transaction. So, the study recommends the National Bank of Ethiopia to build its capacity by trainings and experience sharing with other African countries. Moreover, the National Bank of Ethiopia better to ensure which entry mode is optimum to Ethiopian context as it is recommended from the respondents Mergers and Joint venture since they create an opportunity for the knowledge transfer and technology imitation. The existing domestic banks had better merge with other domestic banks in order to boost their capital to compete with the coming foreign banks.Item Bank Specific Determinants of Non-Perfoming Loans in the Case of Ethiopian Private Commercial Banks(A.A.U, 2021-06-13) Sawit Wassie; Abebaw Kassie (PhD)This study aims to find out the determinants of NPLs in Ethiopian private commercial banks. The variables were picked based on findings from the past written literatures. A quantitative research approach and explanatory research design were taken on in completing this research. Data collection method adopted for the study was document review. Secondary panel data were gathered from audited annual reports of the banks and from Ethiopian national bank then the desired ratios were calculated. Multiple linear regression equation was used to make an estimate of the model using Stata version 10 software. Data was collected from 16 private banks Tables, percentages; mean and standard deviation were established to survey the data. Furthermore, Random Effect Model was used to examine bank specific determinates of non-performing loan. loan growth rate, bank size, net interest margin ratio, return on asset and loan to deposit ratio has impact on the degree of NPLs. However, the outcomes did not suggest that equity to total asset ratio activities change the level of NPLs. The study suggests that private commercial banks should focus on many factors when providing loans so as to decrease the amount of NPLs. loan to deposit ratio, net interest margin, loan Growth rate, return on asset, bank Size were critical driver of NPLs, consequently centering and inciting the establishment close by these indicators could reduce the likelihood of NPL in Ethiopian private commercial banks. Further studies are recommended by including macroeconomic and other bank specific variables additionally by increasing the sampled periods. Key words: Loan to deposit ratio, Net interest margin, Loan growth rate, Return on asset, Bank size, Equity to asset ratioItem Factors Affecting Customers’ Decision to Adopt Interest Free Banking in Ethiopia: The Case of Dashen Bank S.C.(A.A.U, 2023-12-03) Adil Metsa; Mohammed Seid (PhD)This paper aims to examine the main Factors Affecting Customers’ Decision to Adopt Interest Free Banking in Ethiopia: The Case of Dashen Bank Share Company. The researcher employed a cross-sectional explanatory research design and also a quantitative research approaches were used to collect and analyze primary data. This research collects primary data by distributing questionnaires to 398 customers of Interest Free Banking services in Addis Ababa and a total of 340 questionnaires were returned and used for analysis. The independent variables in this study are awareness, bank reputation, perceived complexity, perceived compatibility, perceived risk, relative advantage, religiosity, and social influence. Meanwhile, the dependent variable is customers’ decision to adopt interest free banking services. The result of this study indicates that awareness, bank reputation, social influence and perceived compatibility have a positive effect on customers’ decision to adopt interest free banking services. Likewise, perceived complexity, relative advantage and religiosity have a significant and positive effect on customer intention to adopt interest free banking services. Meanwhile, perceived risk has a negative and significant effect on customers’ decision to adopt interest free banking services in Dashen Bank Share Company. The study suggested that in order to assist the adopting of interest free banking services in the bank, the banks must actively promote themselves to the public to improve the reputation of interest free banking and to introduce innovations available in adopting interest free banking services. Keywords: Interest Free Banking, Awareness, Bank Reputation, Perceived Complexity, Social Influence, Perceived Compatibility, Perceived RiskItem Oprational Challenges on Performance of Multi-National Companies in Ethiopia: The Case of Unilever Ethiopia(A.A.U, 2022-11-16) Alemnesh Merid; Temesgen Worku (PhD)Operation performance is generally used to express effectiveness of the firm (business) in organizing and transforming inputs into goods and services, and marketing it to achieve targeted goals over a given period of time. Multinational companies become a significant policy priority in developing countries with a view to reap the positive effects, and such companies have been widely recognized as a growth enhancing factors for host countries (Mesfin, 2016). Thus, the goal of this thesis was to assess the operational challenges of Unilever Ethiopia with respect to economic environment, political environment, taxes regulation and exchange control. Respondents from the company selected based on random sampling technique. The survey was conducted with 132 respondents. Descriptive statistics and multiple linear regression analysis were used to analyze the data with the aid of SPSS version 23. The finding of this study implies that the economic environment such as shortage of raw materials; fluctuations of the exchange rate in the market, and the agriculturally based economy significantly affect company’s production performance. This study has also an important policy implication. and this study suggested that government should provide sufficient foreign exchange through using both domestic and international financial service providers. Strength the capacity of the producers through providing the needed raw materials, build more infrastructure and create pro-business environment in line with its forward linkage effect. Keyword: Multinational companies, production performance, operational challengesItem Effectiveness and Challenges of Live Online Mba Lectures: Applying the Community of Inquiry (Coi) Framework at Addis Ababa University, College of Business and Economics(A.A.U, 2024-06-17) Asegid Debebe; Tilahun Teklu (PhD)This thesis examined the effectiveness and challenges of online lectures for MBA students at Addis Ababa University's College of Business and Economics (CoBE) using the Community of Inquiry (CoI) framework, which includes cognitive, teaching, and social presences. Data were collected from 111 students and 6 instructors via the CoI questionnaire and analyzed using descriptive statistics and Partial Least Square Structural Equation Modeling (PLS-SEM). The results indicated that while students generally understood the material taught online, the significant majority of the students faced technical difficulties impacting their learning experience. Many students expressed satisfaction with online learning and a willingness to continue, although concerns about its sufficiency for full preparation for exams and assignments remained. Instructors had mixed experiences, with some expressing satisfaction and others highlighting challenges such as internet connectivity issues and the lack of interactive teaching aids. The PLS-SEM analysis revealed significant relationships between teaching, social, and cognitive presences and the perceived effectiveness of online learning. The findings highlight the importance of addressing technical challenges, enhancing digital literacy, and improving teaching strategies to foster engagement and interaction in online classes. This research contributes to understanding online learning dynamics and provides recommendations for improving online education practices at Addis Ababa University and similar institutions. Keywords Online Learning, Addis Ababa University, Live Lecture, COVID-19Item Institutional Quality and Inward Foreign Direct Investment in Sub-Saharan Africa(A.A.U, 2025-01-11) Genet Mulate; laxmikantham Padakanti (Asso. Prof.)This study aimed to investigate the impacts of institutional quality on foreign direct investment (FDI) in Sub-Saharan Africa, focusing on identifying key economic challenges and opportunities to inform strategic policy interventions. The research problem stems from persistent socioeconomic vulnerabilities in African economies, including weak institutional frameworks and their impacts on capital flows or FDI which is key for technology transfer, economic diversification and economic growth in the region. Employing a quantitative research design and a deductive research approach, the study analyzed secondary data collected from reputable global financial and economic databases. A purposive sampling technique was used to select countries based on economic diversity, regional representation, and data availability. Data analysis involved descriptive and inferential statistical methods to ensure robust and reliable findings. Using panel data for selected SSA countries for the period from 2000 to 2003 and employing generalized method of moments (GMM) and quantile regressions, the study provides evidence that the quality of governance is a critical determinant of inward FDI in SSA. The key findings revealed that the performance of inward FDI is significantly influenced by the quality of governance, including Control of Corruption, Rule of Law, Voice and Accountability, Government Effectiveness, Political Stability and Absence of Violence/Terrorism and Regulatory Quality. The analysis reveals a great extent of heterogeneity. Countries with lower levels of FDI benefit most from improvements in the quality of governance. The study concludes that tailored interventions, including strengthening institutional frameworks and the quality of governance are crucial for enhancing the inflow of foreign direct investment which is crucial for economic growth and resilience in Africa. The findings have important policy implications. Improving the quality of governance and institutional quality is crucial for African countries in order to facilitate inward FDI to the region. Policy reforms, capacity building, and stakeholder engagement to address unique challenges regarding the issue of governance is a game changer. This study contributes to the discourse on sustainable economic development in Africa, providing a roadmap for policymakers, development partners, and private sector actors on improving various aspects of governance that are key for enhancing FDI inflows. Keywords: Quality of Governance, Foreign Direct Investment, Economic Resilience, African Economies, Institutional Quality, Policy InterventionsItem The Effect of Human Resource Management Practice on Organization Commitment, in Case of Lideta Sub City Administration Office(A.A.U, 2024-06-16) Debora Gebredingle; Dejene Tulu (PhD)Human resource management practices such as training & development, performance appraisal, compensation & reward, recruitment & selection and their effects on the organizational commitment are examined by previous researchers. However, not many studies have conducted in Ethiopia, more specifically in the government administrative office. This researches was aimed to investigate the effects of human resources management practices in organizational commitment based on the three-aspect version of organisational commitment, such as; affective commitment, continuance commitment, and normative commitment. Also the study was conducted in Ethiopian Lideta Sub City Administration Office and it uses explanatory to examine the relationship cause and effect among variables. The total of 232 questionnaires was disseminated and 205 were collected that accounts 88.4 % response rate. Data was collected and Statistical Package for Social Sciences (SPSS) version 20 was used as the statistical analysis tool and interpretation of findings. The research finding was indicated that affective, continuance, normative, and overall organizational commitments was high relationships with performance appraisal and compensation & reward and low relationships with training & development and also recruitments & selection. Generally, the study concluded that the overall HRM practices has been 70.3% influenced on the organizational commitment. Keywords: Organizational commitment, affective commitment, continuance commitment, normative commitment, training & development, performance appraisal, compensation & reward, recruitment & selection.Item Investigating the Role of Accounting Information Systems in Enhancing Financial Performance: The Case of the Ethiopian Insurance Industry(A.A.U, 2024-06-12) Mehari Tefera; Temesgen Worku (PhD)The Ethiopian insurance industry has made notable growth since the mid of ‘90s, highlighting the need for sound financial performance. This thesis investigated the role of accounting information systems (AIS) in enhancing these practices within the industry. Besides this, this research explored the current state of AIS adoption. It also examined existing challenges, and evaluates the perceived impact of AIS on general financial management areas. The study combined quantitative data analysis with qualitative insights gathered through interviews and survey questionnaire with 68 executive level insurance professionals by employing a mixed-method approach. Literature has it that effective AIS implementation can lead to improved accuracy, efficiency, and transparency in financial data. This improvements guarantees better financial performance. However, challenges such as system integration, user skill gaps, and inadequate data security could hamper full adoption of the information system. This thesis employs Resource Based View of Firm Theory, DeLone and McLean Information System Success Model, Technology-Organization-Environment, Technology Acceptance Model, and Profit Maximization Theory as a theoretical framework. The findings of the study rejected the alternative hypothesis while upholding the null hypothesis which states: there is no significant relationship between Accounting Information System and Financial management performance within the context of the Ethiopian Insurance Industry, at 0.05 significance level. Keywords: Financial Performance, Resource Based View of Firm Theory, DeLone and McLean Information System Success Model, Technology-Organization-Environment, Technology Acceptance Model, Profit Maximization TheoryItem Analyzing Financial Performance Trends of Commercial Banks in Ethiopia: Implications for Investor Engagement in the Emerging Capital Market(A.A.U, 2024-06-12) Setna Abayrom; Mesfin Fikre (PhD)This research paper examines the financial performance trends of commercial banks in Ethiopia and explores their implications for investor engagement in the emerging capital market. The study aims to address the following statement of the problem: Despite the growth and development of the Ethiopian banking sector, there is a lack of comprehensive analysis on the financial performance of commercial banks and its impact on investor engagement in the capital market. This knowledge gap hinders investors' ability to make informed decisions and hampers the overall growth and stability of the capital market. Therefore, this research seeks to fill this gap by conducting a detailed analysis of financial performance indicators of commercial banks in Ethiopia. The study focuses on analyzing key financial ratios related to profitability, liquidity, solvency, and risk of eight commercial banks in Ethiopia. The research design adopts a quantitative approach, utilizing data collection instruments and techniques to gather financial data from the banks' annual reports from 2013-2022. The findings reveal the performance of each bank in terms of profitability ratios, liquidity ratios, and solvency and risk ratios. The research provides valuable insights to investors, regulators, and stakeholders, enabling them to better understand the financial health of commercial banks and make informed investment decisions in the emerging capital market . The conclusions and recommendations drawn from this study contribute to enhancing the understanding of commercial banks' financial performance and their role in the emerging capital market, ultimately promoting economic growth and development in Ethiopia. Key words: Banks, Ethiopia, Financial performanceItem Factors Determining Life Insurance Premium the Case of Ethiopian Insurance Corporation (Eic)(A.A.U, 2024-10-19) Wondimagegn Mersha; Alem Hagos (PhD)Insurance pricing is a crucial aspect for insurance companies as it directly impacts their profitability. To maximize revenue, insurance firms need to stay updated on the factors influencing insurance pricing decisions. The primary objective of this study is to identify the factors that affect life insurance pricing within the life insurance sector, specifically focusing on Ethiopian Insurance Corporation in Addis Ababa, Ethiopia. The research targets both management and non-management employees of Ethiopian Insurance Corporation life insurance department, considering variables such as Demography, Claim settlement, Government regulation and Competition level as predictors of Life insurance pricing. This study employs an explanatory research design to explore the factors influencing life insurance pricing in the life insurance industry. The Data was collected through questionnaires from a census of 92 employees of Ethiopian Insurance Corporation’s life insurance department. The analysis utilized Pearson correlation and multiple regression techniques via SPSS 26.0 to assess the relationships between the independent variables and life insurance pricing. Findings indicate that all identified factors contribute to life insurance pricing; however, claim settlement has the most significant impact compared to demography, competition level and government regulation. Consequently, insurance companies should develop strategies to effectively address these factors to enhance the life insurance pricing strategy of the insurance sector. Keywords: Life insurance pricing, Demography, Claim settlement, Government regulation and Level of competition.Item Impact of Cost Fluctuation of Major Consruction Materials on The Project Cost in The Case of Ethiopian Roads Administration(AAU, 2024-12-19) Biruhehiwot Zerihun; Alem Hagos(PhD)The aim of this study was to ascertain the potential impact of large construction material pricing fluctuations on the projects of the Ethiopian Roads Administration (ERA). Both qualitative and quantitative data were collected using a descriptive and explanatory study technique. Primary data were collected using questionnaires and interview guideline, while secondary data were obtained from eight projects with five years of data (60 months) via contractor's payment certificates and progress reports. The respondents were Ethiopian Road Administration Engineers, Consultants, and Contractors working on the eight projects listed. Only 60 of the 70 questionnaires that were distributed for this study's study region were accurately filled out and returned, yielding an 86% response rate. While quantitative data was analysed using statistics analysis, which included computations of mean and percentage as well as inferential analysis (multivariate as well as basic regression and correlation processes), qualitative data was analysed using content analysis. In situations where the connections were clear-cut, simple linear regression was able to effectively illustrate the relationship between the two variables. Since the materials used in the road projects are in large quantity, a rise in fuel prices could have an impact on the overall cost of road construction projects due to higher equipment and material transportation expenses. In addition, bitumen prices have fluctuated over time, with higher figures showing up in certain projects. Additionally, there are variations in the quantity of work that is subject to price adjustments; the majority of ERA projects experience delays and necessitate extending deadlines. Contractors may file claims for price increases that exceed their expectations of the price adjustment if they are granted additional time to complete their projects. Ultimately, it was found that fuel, steel, cement, and bitumen all had positive and significant effects on project cost. According to the study's findings, although material costs have not risen consistently over time, they have usually done so to the degree that they can significantly affect the overall cost of road construction projects. Based on the data, this study came to the conclusion that bitumen, steel, cement, and fuel had a favourable and significant impact on project cost. This study suggests that planning, monitorItem Impact of Taxpayers‘ Perception of Fairness on Tax Compliance Attitude: Evidence From Categories A And B Taxpayers in Bahirdar(AAU, 2024-05-18) Desalegn Demis; Wollela A. (PhD)This study investigates the determinants of voluntary tax compliance attitudes among taxpayers in the context of the business profit tax system. Utilizing logistic regression analysis and in-depth interviews, the research examines the impact of fairness perceptions, demographic characteristics, and business status on compliance attitude. Findings reveal significant positive associations between exchange, inter-group, procedural, and retributive fairness perceptions with voluntary compliance attitudes. Moreover, individuals in managerial status and those with combined ownership and managerial responsibilities demonstrate higher compliance likelihoods. Education level emerges as a critical determinant, with higher education associated with increased compliance. Age also influences compliance positively. Notably, the study emphasizes the importance of fairness perceptions and demographic characteristics in shaping compliance behaviour. Recommendations are provided for policymakers and tax authorities to enhance compliance through targeted interventions and educational proItem Factors Determining Life Insurance Premium: The Case of Ethiopian Insurance Corporation (Eic)(A.A.U, 2024-09-18) Wondimagegn Mersha; Alem Hagos (PhD)Insurance pricing is a crucial aspect for insurance companies as it directly impacts their profitability. To maximize revenue, insurance firms need to stay updated on the factors influencing insurance pricing decisions. The primary objective of this study is to identify the factors that affect life insurance pricing within the life insurance sector, specifically focusing on Ethiopian Insurance Corporation in Addis Ababa, Ethiopia. The research targets both management and non-management employees of Ethiopian Insurance Corporation life insurance department, considering variables such as Demography, Claim settlement, Government regulation and Competition level as predictors of Life insurance pricing. This study employs an explanatory research design to explore the factors influencing life insurance pricing in the life insurance industry. The Data was collected through questionnaires from a census of 92 employees of Ethiopian Insurance Corporation’s life insurance department. The analysis utilized Pearson correlation and multiple regression techniques via SPSS 26.0 to assess the relationships between the independent variables and life insurance pricing. Findings indicate that all identified factors contribute to life insurance pricing; however, claim settlement has the most significant impact compared to demography, competition level and government regulation. Consequently, insurance companies should develop strategies to effectively address these factors to enhance the life insurance pricing strategy of the insurance sector. Keywords: Life insurance pricing, Demography, Claim settlement, Government regulation and Level of competition.Item The effect of incentive scheme in reducing agency cost of an organization(AAU, 2023-12-15) Sebsiba Kiros Beyene; Temesgen Worku (PhD)The primary goal of this study was to evaluate how incentive scheme impact in reducing agency costs within organizations. It sought to understand the root causes of agency costs and the effectiveness of incentive schemes in diminishing the conflict of interest between the principal and agent that creates agency cost. Data was gathered through a questionnaire, with the first section focusing on demographic details and the second section addressing questions related to the causes and effects of agency costs. Analysis was conducted using an ordinal scale, organizing responses numerically. The results underscored the significance of agency problems in generating agency costs and demonstrated the positive influence of incentive schemes in addressing them. The study advocates for the implementation of diverse incentive structures encompassing both intrinsic and extrinsic motivators. Additionally, it suggests enhancing the ownership stake of managerial personnel to effectively tackle agency costs within organizational setups.Item Determinants of Lending Interest Rate in Ethiopian Private Banks(AAU, 2024-01-13) Zenebe Ayalew Abebe; Takele Fufa (PhD)The aim of the study was to investigate the determinants of lending interest rate in Ethiopian private commercial banks by taking their audited financial times series data from 2010 to 2021. To meet the purpose of the study the researcher has been used an explanatory research design ,and quantitative research approach is employed to determine the effect of each independent variable on the dependant variable. To conduct analysis SPPSS (Version 26) and Stata version 17 statistical software were used in this study. The study’s dependant variable is lending interest rate, and the independent variables are Bank Size, profitability ratio, liquidity ratio, Deposit rate and inflation rate. The classical linear regression analysis result revealed that Bank Size, profitability ratio, and liquidity ratio are the significant independent variables to explain the dependant variable and these variables are inversely related with lending interest rate. On the other hand, Deposit rate and inflation rate are directly related with lending interest rate. Here, Deposit rate and inflation rate are statically significant in explaining the dependent variable. The study recommends, private commercial banks have to consider lending interest rate determinants in their lending rate determination while improving their internal inefficiencies. And also the central bank has to makes policies that encourage competition among the private commercial banksItem The Effect of Human Resource Management Practices on Innovation Performance with Moderating Factor of Network Competence at Nib International Bank(A.A.U, 2024-02-07) Million Demissie Gudeta; Zelalem G/Tsadik(PhD)This study aims to investigate the influence of human resource management (HRM) practices on innovation performance, considering network competence as a moderating factor within the context of NIB International Bank. This study employs a comprehensive research design, combining both descriptive and explanatory approaches, Quantitative methodologies are utilized, involving the distribution of structured questionnaires to personnel clerks and management officials from Nib International Bank's main office and selected branches, employing random sampling procedures to ensure representative participation, Data collection involves both primary and secondary sources, with standardized questionnaires adapted from reputable sources, utilizing five scale-based questionnaires, and gathered responses from a sample of 121 individuals. The analysis process involves utilizing statistical techniques, including regression and correlation, through the statistical package for social science (SPSS). The descriptive findings underscore the pivotal role of HRM practices in enhancing human resource management, emphasizing the significance of staying abreast of the latest technological advancements, fostering a conducive environment for career growth, providing development opportunities, recognizing employee contributions, and promoting work-life balance. The study recommends strategic improvements in these areas to further elevate innovation performance at NIB International Bank.Item The Impact of Liquidity and Solvency on Profitability in Ethiopian's Private Banks(AAU, 2023-12-28) Eyobed Miriye Tadesse; Tefferi Ghebray (PhD)This study aims to address the challenges associated with evaluating profitability in the Ethiopian banking industry, the evaluation of profitability within the Ethiopian banking industry faces challenges associated with the reliance on high annual gross profit as a comparative benchmark. This research addresses this issue by investigating and contrasting the influence of liquidity and solvency on the profitability of Ethiopian private banks. The primary objective is to establish an industry benchmark through a thorough desk review, evaluating the annual reports of Ethiopian private banks using liquidity, profitability, and solvency ratios. Adopting a case study research methodology, the study selects 16 private banks registered under the National Bank of Ethiopia based on the accessibility of their accounting statements. The analysis focuses on return on assets (ROA) as the dependent variable and considers current ratio, debt ratio, interest coverage ratio, and total debt to equity ratio as independent variables. The study employs correlation coefficient analysis and ANOVA F-test within the framework of multiple regression analysis to reveal statistically and practically significant findings. Notably, the research identifies a positive correlation between the current ratio and ROA, emphasizing the importance of liquidity in driving profitability among the sampled banks. Conversely, the study highlights a negative relationship between the debt ratio, interest coverage ratio, and ROA, underscoring the adverse impact of high debt and low interest coverage on profitability within the Ethiopian private banking sector. In conclusion, these findings underscore the critical significance of considering liquidity and solvency factors in the evaluation of profitability within the Ethiopian banking industry, providing valuable insights for stakeholders and policymakers