Accounting and Auditing

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    The Effect of Leverage on Airlines Profitability; the case of some selected African Airlines
    (A.A.U, 2024-01-03) Bona Gutu; Degefa Duressa (PhD)
    The study's goal was to find out how leverage affected the profitability of a few African airlines. Thus, using the EVIEWS 10 software program, secondary data from the audited annual reports of eight airlines that were purposefully chosen for the 2010–2020 time frame were examined using a fixed effect panel regression model. The research design and approach used in the study were explanatory and quantitative, respectively. To isolate the effect of leverage on airlines' profitability and to capture the influence of variables other than the study's primary objective variables (degree of operating and financial leverage), the effect of both operating and financial leverage on airlines' profitability (ROA) was examined by introducing control variables (operating efficiency, airline size, and exchange rate). The degree of operating leverage used by airlines has a positive and statistically significant impact on profitability (ROA), according to the results of the fixed effect regression model. Conversely, certain airlines' profitability (ROA) is negatively and significantly impacted by their level of financial leverage, operating efficiency, size, and exchange rate. Considering the findings, airlines are recommended to update their capital structure and operating costs by increasing the amount of operating leverage (using fixed operating costs), which maximizes their profitability, and optimize debt financing to levels that are easily manageable.
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    Assessment of Cost Accounting Practice: The Case of Segon Marill International Movers Plc in Ethiopia.
    (A.A.U, 2024-07-02) Goytom G/egziabher; Kelifa Sromolo (PhD)
    This study aimed to assess the cost management practices of Segon Marill International Movers P.L.C. The sample size of this study is 12 employees of the company. The researcher used both open-ended and closeended Questionnaires and interviews to collect data from the company's employees and top management. The findings revealed that the company has a separate cost accounting department with professionally Qualified and efficient staff, although the department lacks adequate personnel. The company utilizes Marginal, Standard, and Job Order costing approaches, but the current costing method is perceived to be complex, lacking in transparency, and in need of better integration and automation. The study found that the company extensively uses cost accounting information to support operational efficiency, control, and strategic decision-making, but there are opportunities to further optimize its application. The company has a strong focus on cost reduction and control through strategies such as operational efficiency, inventory management, employee engagement, and supplier negotiation. Based on the findings, the study recommends that the company should ensure the cost accounting department has sufficient staff, empower the department to collaborate across the organization, regularly review and streamline the costing approaches, invest in robust cost accounting systems, and foster cross-functional collaboration. Additionally, the company should simplify the costing processes and optimize the system's structure to improve transparency and ease of use.
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    Factors Affecting the Performance of insurance Companies in Ethiopia
    (A.AU, 2024-06-03) Natnael Hailu; Habtamu Berhanu(PhD)
    This study aimed to identify the factors that impact the performance of insurance companies in Ethiopia. The researchers employed a causal research design using a mixed research approach, as quantitative data was required for the report's preparation. The study's target population was 18 general insurance companies in Ethiopia, but the researchers selected 10 experienced composite insurance companies with 10 years' worth of audited financial statements from 2014 to 2023. The secondary data was collected by closely reviewing financial statements and other published materials. The study utilized the Ordinary Least Square model to analyze the data through Stata version 14.2. The results demonstrated that explanatory variables incorporated in the model - such as retention ratio, combined ratio, company size, the tangibility of assets, inflation rate, GDP, and awareness of the society - affected Ethiopia's insurance companies' performance. However, premium growth and Leadership quality had no significant effect on the performance of insurance companies in Ethiopia. The study's findings provide insights into the performance of insurance companies in Ethiopia. Insurers must prioritize innovation and develop new products and services to meet evolving customer needs. This includes creating tailored insurance products for underserved demographic segments. Insurance companies should operate in a competitive environment, avoid price-cutting and risky investments, and implement robust underwriting and risk management practices to foster industry growth and economic development in Ethiopia.
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    The Effect of Electronic Tax System on Tax Compliance in Fdre Mor: The Case of Large Tax Payers Office
    (A.A.U, 2024-04-21) Dawit Bayu; Habtamu Berhanu (PhD)
    This study investigates the effect of electronic tax systems on tax compliance among large taxpayers in FDRE MOR, Ethiopia. Quantitative research methodology is utilized, employing regression analysis to measure the effect of electronic tax systems on compliance. Data from 260 respondents was analyzed using the Statistical Package for Social Science (SPSS). Findings reveal a significant positive correlation between electronic tax systems and tax compliance, indicating that functionality, performance, and effectiveness of the system influence compliance. Regression analysis further confirms the relationship, with electronic tax filing and payments having significant positive coefficients on compliance. The study contributes to understanding the dynamics between electronic tax systems and compliance, providing insights for policymakers and tax authorities to enhance tax administration strategies.
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    International Public sectors Accounting Standard Implementation Practice in Ethiopia: In the case of Implementing International Non-Governmental Organizations.
    (A.A.U, 2022-06-11) Beneber Teshome Tesfe; Abebaw Kassie (Dr)
    IPSAS is a new concept in Ethiopia having the required technical expertise and issued by Accounting and Audit Board of Ethiopia to be applied on public sector including INGOs. The objective of this study was to assess IPSAS implementation practice on INGOs currently operating in Ethiopia. The study used descriptive survey design and the data collected for this particular study were from 34 sample respondents. The main benefits of this study includes enhanced internal control, employ benefit calculation, comparability and understandability, better resource management, acceptability of the financial report by the concerned bodies, to establish effective follow up procedure, to measured and recognize donation in kind and in service and to record inventory appropriately. The main challenges of IPSAS implementation includes fixing a fixed asset threshold, lack of budget to facilitate training for staffs, inflated cost of consultants, low management attitude about the system, lack of readiness of government bodies for monitoring its implementation in public sectors and creates a reasonable conflicting situation between charities and regulatory bodies regarding with operational and administrative cost category of 80/20 rule. The study finding implies that, AABE needs to work with Ministry of Education to include IPSAS concept as one course in every business fields of studies. AABE, ACSO, charities and External Audit Service providers should provide IPSAS training for their staffs to accelerate and maximize the benefit gained from IPSAS implementation. Finally I suggest that, to enhance IPSAS implementation, both researchers and policy makers should target on testing the performance of the implementers and controllers.
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    The Effect of Electronic Banking on The Performance of Commercial Banks in Ethiopia
    (A.A.U, 2024-06-04) Seblewongel Teshome; Abebaw Kassie
    This study examines the impact of electronic banking (e-banking) on the performance of commercial banks in Ethiopia. This study examines how the adoption of different online banking channels such as ATMs, POS terminals; debit cards and mobile banking affect the financial performance and resource mobilization of commercial banks in Ethiopia. The study used an explanatory design and a quantitative research methodology. The profitability of commercial banks was measured and explained by ROA and ROE, and the quantity of deposits indicates how well the commercial banks mobilize resources. Debit cards, ATMs, POS systems, and M-Banking were the explanatory variables. In order to look into how bank size and bank liquidity affected bank profit, additional control variables were added. Several linear regression models were used to investigate the correlation. Data was analyzed using descriptive statistics and inferential analysis using Stata version 14 software. The finding reveals that number of ATM, number of POS and bank liquidity were the main contributors of bank performance. These e-banking channels have positive and significant effect on both ROA and ROE and deposit. Debit card (DC) has negative effect on ROA and positive but insignificant effect on ROE and deposit. Mobile banking and bank size affect the performance of the bank negatively. As a means of automating their banking system, banks are advised by the study to invest more in new e-banking channels like installing ATM that can accept deposit, digital lending and credit cared. Additionally, strategies involving partnerships and collaborations among commercial banks must be developed, to generate income by using other banks’ ATM and POS.
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    Determinants of Internal Audit Effectiveness in Ethiopian Private Banks: the case of selected Private Commercial Banks
    (A.A.U, 2025-03-05) Tamrat Wubshet; Abebe Yitayew (PhD)
    Given the crucial role of internal audit in strengthening internal controls, managing risks, and improving corporate governance, it is essential to investigate the factors that contribute to its effectiveness. The primary goal of this study was to identify the factors that influence the effectiveness of internal audit functions in Ethiopian banks. Then, this study examines the bond between “internal audit effectiveness/success and several key issues”. The questionnaires were structured using a Likert-scale and distributed to 199 internal auditors at the selected banks. The collected data was then analyzed using Stata statistical software. Furthermore, “relevant documents were reviewed to gather further insights”. Hence, the study findings demonstrate that internal auditor competence, independence and objectivity of audit function, “board & management support”, “audit-committee existence”, and RBIA methodology are all significant factors influencing the effectiveness of internal audit in Ethiopian commercial banks. The study recommends that Ethiopian commercial banks prioritize the factors identified in the research to improve the efficiency and effectiveness of their internal audit functions. By focusing on these factors, banks can strengthen their management of risk, “internal controls”, and “corporate governance practices”. In addition, the investigator suggests that future research should explore additional factors that may influence the internal audit effectiveness in Ethiopian banking-industry.
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    Factors Affecting Bank Profitability: the Case of Selected Private Banks in Ethiopia
    (A.A.U, 2025-02) Wongelawit Estifanos; Kelifa Srmolo (PhD)
    Banks play a major role in the development of an economy by channeling resources. Hence, a bank’s performance is of high interest to the bank itself, regulatory bodies and other stakeholders. This study assessed factors that affect bank profitability by considering sixteen private banks’ panel data spanning 10 years, from 2014 – 2023. As secondary data was used for the study, a quantitative approach was implemented. A nonprobability purposive sampling method was used to select the sixteen banks from the research’s target population, all private commercial banks in Ethiopia. The relationship between the dependent variable and the explanatory/independent variables was explained using an explanatory research design. Fixed effect model was applied to perform a multiple regression analysis on the balanced panel data sets. The explanatory variables used in the study consist of both internal and external factors which include revenue diversification, expense, inflation, GDP and peace and security whereas return on asset was selected as the dependent variable to measure profitability. The findings of the study indicate that revenue diversification, expense, inflation and GDP are statistically significant variables with revenue diversification and inflation having a positive effect on return on asset. GDP and expense have a negative but significant impact on profitability. On the other hand, peace and security was a statistically insignificant variable based on the results of the study. It is recommended that banks diversify their income-generating activities to hedge against risk and manage their expenses efficiently to increase their profit. Additionally, better inflation management policies should be in place to take advantage of opportunities presented while mitigating potential risks.
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    Challenges and Applicability of Energy Bill System in Ethiopian Electric Utility
    (A.A.U, 2025-02-25) Fekadu Kaba; Temesgen Worku (PhD)
    The purpose of this study is to identify challenges and applicability energy bill system EEU. The study guided by the following specific objectives: To assess the energy bill system applicability and challenges in Ethiopia Electric Utility. Both qualitative and quantitative research approaches were used in this study. The researcher used primary and secondary data. Primary data collected using systematic random sample of all professional categories of Ethiopia Electric Utility Head office staff and secondary data gathered from customer service manual and bill collection manual Ethiopia electric utility document. 264 sample respondents were selected from region office and CSCs. The data were analyzed using SPSS version 26. The descriptive result of the study shows the majority of customer CSCs. the descriptive statistics such as frequency, percent, mean and standard deviation was used for describing the characteristics of respondents and the dependent and independent variables. The findings of the descriptive statistics: further those have a positive and significant effect on the challenge and applicability energy bill system Ethiopian Electric Utility while customer type, income and educational level were found to be insignificant in this study. In addition to this age has a negative and significant relationship with the challenge and applicability energy bill systems. Finally, based on the findings, feasible recommendations were provided. Among them, address connectivity issues as a priority. Improve payment system reliability and expand customer support channels, offering alternative communication options for accessibility. Further, ensure prepaid cards are widely available and reduce infrastructure costs to facilitate adoption by small and medium businesses. Collaborate with regulatory bodies to gain support for new payment systems.
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    The Effect of Investment on Financial Performances: the Case of Selected Private Commercial Banks in Ethiopia
    (A.A.U, 2025-08-11) Feysel Faris; Degefe Duressa (PhD)
    Investment has been a real concern in banking industry, because right investment is potentially an effective tool that banks can use to gain a strategic competitive advantage and improve its performance. The main purpose this paper was lack of studies in banks investment impact on financial performance in Ethiopia specifically in private banks. This research conducted on banks investment impact on their financial performance, with objective of assessing the influence fixed asset investment, intangible asset investment, investment in equity or share and investment in bill and bond on return on equity in selective private banks, by taking a sample of 4(four) banks from the overall 38private banks in Ethiopia. The study used return on equity (ROE) as dependent variable and fixed asset investment (IFA), intangible asset investment (IAI)t, investment in equity or share(IE) and investment in bill and bond(IBB) as independent variables. Data were collected from companies annual report data and multiple regression and correlation analysis was used to test the hypothesis developed and to show the relationship among the dependent variable and the independent variables. The study found that two variables of investment (fixed asset investment, and investment in equity or share) have positive and significance influence on banks return on investment and intangible asset investment have negative significant influence on banks return on investment. But the influence of investment in bill and bond is insignificance. Therefore, this research suggested to private bank to keep their focus on the variables affecting return on investment and take them into consideration in formulating strategies for improving banks performance on return on equity .
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    Determinants of profitability of private commercial banks in Ethiopia
    (A.A.U, 2025-03-05) Fnot Asfawosen; Habtamu Birhanu (PhD)
    The study seeks to identify the determinants of performance of private banks by considering the new NBE directive of Surrendering percentage of Foreign Exchange Inflow to the National Bank of Ethiopia and other bank specific factors.. In order to realize the objective of the study, mixed research design was used whereby descriptive, econometrics and qualitative approaches were blended. Data were collected mainly from secondary data emerged from annual reports, of all 16 private banks using censes sampling method. For the analysis of data, descriptive statistics and econometrics model (random effect panel regression) were used. Moreover, qualitative data analysis was used to substantiate the arguments obtained through the quantitative analyses. The findings of the study show that managerial efficiency and Net interest margin has found statistically significant and positive relationship with banks’ profitability. On the other hand, variables loan provision amount negative and statistically significant relationship with banks’ profitability. Therefore, considering the output of the research it is recommended that private commercial banks should increase their managerial efficiency, net interest margin and lowering their NPL position to minimize the provision amount held for each loan loss in order to be profitable. Moreover, the government should revise its policy imposed on private banks and further exploration on the long run impact of the requirement is recommended.
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    Assessment on the Security of Accounting Information System in the Banking Sector in Ethiopia: the Case of Zemen Bank
    (A.A.U, 2024-06-26) Etsubdink Endale; Habtamu Berhanu (PhD)
    The paper delves into the critical issue of accounting information system (AIS) security within the Ethiopian banking sector, with a specific focus on Zemen bank. The study aims to comprehensively understand the factors influencing the security of AIS in this context. The dependent variable, security of AIS, is influenced by several independent variables, including security measures and control, user authentication methods, employee training and awareness, and technology infrastructure within Zemen bank's AIS. The research seeks to investigate the challenges and vulnerabilities associated with security measures and control within Zemen bank's AIS. It aims to understand the effectiveness of existing security protocols and identify potential weaknesses that may compromise the security of the system. Additionally, the study analyze user authentication methods to determine their impact on AIS security, as well as evaluate employee training and awareness programs to gauge their effectiveness in mitigating security risks. Furthermore, the research will delve into the technological infrastructure supporting Zemen bank's AIS to assess its role in ensuring the security of financial information. By examining these independent variables, the study aims to provide insights that can guide the development of effective strategies and policies to enhance the security of AIS in Ethiopian banks, ultimately contributing to the protection of sensitive financial information and the overall resilience of the banking sector. In conclusion, this research paper aims to contribute to the understanding of AIS security in the Ethiopian banking sector, with a specific focus on Zemen bank. By examining the factors influencing AIS security, including security measures and control, user authentication methods, employee training and awareness, and technology infrastructure, the study seeks to provide valuable insights that can inform the development of robust security strategies and policies. Ultimately, the findings of this research are expected to contribute to the protection of sensitive financial information and bolster the overall resilience of the banking sector in Ethiopia.
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    The Implication of the upcoming capital market on Ethiopian Commercial Banks
    (A.A.U, 2024-06-04) Melktu Geremew; Advisor: Degefa Duressa (PhD)
    This thesis explores the potential implications of the upcoming capital market on Ethiopian commercial banks. The research aims to identify the potential benefits and challenges that can arise from the introduction of the capital market for these banks. Using descriptive research design and content analysis method was employed, the study focused on five purposively selected banks: Awash Bank, Dashen Bank, Abyssinia Bank, Hibret Bank, and Zemen Bank. The findings suggest that the capital market can bring about several benefits, including improved risk management, access to long-term financing, and a wider range of funding sources. Additionally, it can lead to operational streamlining, innovation, and the evolution of commercial banks into comprehensive financial institutions. However, the introduction of the capital market also poses challenges, such as exposing skill and technological gaps, and introducing new risks associated with new financial instruments. To capitalize on the opportunities presented by the capital market, the researcher recommends that commercial banks invest in staff training, technological advancement, and diversification of their services to meet the needs of the capital market.
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    An Assessment of Project Monitoring and Evaluation Practices: The Case of International NGOs
    (A.A.U, 2024-06-04) Getinet Teferi; Temesgen Worku (PhD)
    Monitoring & Evaluation (M&E) is a systematic process used to track and assess the progress, performance, and outcomes of projects, programs, or initiatives. This method involves the continuous collection, analysis, and interpretation of data to ensure that objectives are being met efficiently and to provide insights for informed decision-making. Monitoring & Evaluation (M&E) play a pivotal role in the success of development projects, allowing project managers to track progress, identify challenges, and make informed decisions. This study focuses on assessing the project monitoring and evaluation practice in five international NGOs (Action Against Hunger (ACF), Population Service International (PSI), Zionist Organization of America (ZOA), Jhpiego (Johns Hopkins Program for International Education in Gynecology and Obstetrics), and Fintrac (Feed the Future Value Chain Activity) operating in Ethiopia. By assessing the monitoring and evaluating practices and project performance, the research aims to contribute to a better understanding of achieving optimal project results. The study employed a census sampling method to collect primary data through questionnaires and interviews. Participants included program managers, program staff, finance managers, finance staff, M&E managers, and directors who worked more than a year in the organization. Out of the 70 distributed questionnaires, 67 were properly filled in and returned. The collected data was analyzed using SPSS, and the results were presented using tables. Findings revealed that the international NGOs involved relevant stakeholders, including beneficiaries, government, donors, and the community, in their M&E activities. However, the gap in practicing & implementing effective M&E systems were identified, such as limited resources in terms of funding, staff, and technical expertise. In conclusion, while the international NGOs have well-established M&E systems, improvements are needed in certain areas. Recommendations include clarifying the extent and objective of the of the M&E (Monitoring and Evaluation) system, providing adequate time and training for project staff, enhancing technical capacity in M&E tools, allocating sufficient budget to the M&E department, involving all stakeholders in M&E practices, ensuring the engagement of top management, and utilizing M&E evaluation reports to monitor project progress.
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    Factors that Affect Loan Repayment Performance of Ethiopian Commercial Banks: Evidence From Addis International Bank S.C in Addis Ababa
    (A.A.U, 2024-06-22) Wube Tsige Alemu; Mehari Mekonnen (Phd)
    The main purpose of the study was to investigate factors that affect loan repayment performance of Addis international Bank S.C in Addis Ababa. To this end factors that affect loan repayment performance of banks on both the borrower and bank side is identified. To arrive at an appropriate conclusion about the issue under study the researcher used descriptive and explanatory research design with quantitative and qualitative research approach. The study also used both primary and secondary data. Primary and secondary data was collected using questionnaires and through verifying documents respectively. From the total population of the study targeted, sample size was determined considering the bank employees and borrowers as strata (using stratified sampling technique). To determine the sample size, the researcher used the Yamane’s formula The total population of the study was 597 which include 500 borrowers and 97 employees and the total sample size is 240. In this study the data obtained from borrowers and the bank was analyzed using Binary regression model was used to measure the variables those are factors that affect loan repayment performance of Addis bank in Addis Ababa. Data were analyzed using statistical Software for Data science (STATA). A total of Twelve explanatory variables representing three dimensional namely institutional factors, loan factors and borrower factors considered to analyze loan repayment performance. Based on the findings of this study, the researcher concludes that Educational level, repayment period, Loan supervision, interest rate, loan size, saving culture, loan processing time and collateral have found to be significant effect on loan repayment performance of housing finance. On the other hand, loan follow-up, marital status, income from other sources and loan diversion have found to be insignificant effect on loan repayment performance. Finally, possible recommendations were suggested that, the bank might consider the significant variables such as Educational level, repayment period, Loan supervision, interest rate, loan size, saving culture, loan processing time and collateral to minimize loan default rate.
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    Challenges and Benefits of Implementing Expected Credit Loss Model For Microfinance Institutions in Ethiopia: Case Study on Some Selected Microfinances
    (A.A.U, 2024-02-13) Bithania Mamo; Abebaw Kassie (PhD)
    According to Financial reporting proclamation 847/2014 ratified by House of people representative, both public and private interest entities were required to prepare their financial report in accordance with International Financial Reporting Standard. Pursuant on the proclamation issued financial Institutions adopted IFRS9 along with other standards. The new standard introduces the expected credit loss model, which is the new impairment model, to allow for up-to-date recognition of credit losses, estimated not only on the actual credit loss, as well as details on the present loan portfolio's prospects. The primary goal of this study was to investigate the challenges and benefits associated with implementing the International Financial Reporting Standard 9 (IFRS 9) Expected Credit Loss Model. Even though the purpose of ECL implementation is to simplify existing rules and increase investor confidence in financial institutions' financial statements, financial institutions confront numerous challenges during implementation. In order to achieve its goals descriptive research design is implemented along with non-probability purposive sampling. Both primary and secondary data gathering approaches are employed to answer the study questions and fulfill the research's goal. The study assessed five microfinance institutions on their implementation of expected credit loss. The research finds that lack of skilled personnel, inadequate data collection and management systems, challenges in obtaining reliable forward-looking information, difficulty in forecasting the expected cash flows of various assets, difficulties in developing suitable models for classifying loans, IT infrastructure related challenges, External challenges are identified as major challenge. This finding recommends the need for Data management systems, implementation of technology and tools, regular ECL model development and validation, Incorporation of scenario analysis and forward looking information, Staff training and Collaboration with external parties are proposed in order to minimize the challenges the institutions are facing.
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    Factors Affecting External Auditor’s Independence in Ethiopia: in Case of Private Audit Firms in Addis Ababa
    (A.A.U, 2024-06-02) Selamawit Dereje; Habtamu Berhanu (PhD)
    This study was examined factors affecting External auditors’ independence in Ethiopia with reference to external private audit firms in Addis Ababa. The researcher employed mixed research approach with explanatory research design where the effect caused by the independent variable on the dependent variable is observed through descriptive, inferential and regression analysis. Primary data was collected through structured questionnaire from 99 auditors of private audit firms. Accordingly, the result of descriptive, inferential and regression analysis showed that size of audit firm, audit tenure, provision of non-audit service, audit firm age, management support and information technology have positive and statistically significant effect on external auditors’ independence. Based on the findings of the study, the researcher recommended audit firms to rotate their auditors periodically, provide assessment and training programs, audit managers to assess auditors’ independence during audit engagement period, audit firms to cope-up with existed and upcoming standards and technologies and the concerned government body to make restriction on provision of non-audit service in order to improve auditors’ independence.
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    Effect of Total Quality Management Practice on Organization Performance: the Case of Dashen Bank
    (A.A.U, 2024-06-24) Menbere Wabi; Temesgen Worku (PhD)
    The purpose of this study was to examine the effect of total quality management practices on the organizational performance of Dashen Bank. The study focused on five independent variables such as top management commitment, customer focus, employee empowerment, continuous improvement and process approach. The study used quantitative research approach and explanatory research design to objectively answer the research questions. The researcher used simple random sampling technique in order to choice respondent from the population and distribute 135 structured questionaries. Then the data were coded through SPSS software and analyzed via descriptive and inferential statistics of correlation and regression analysis. The finding of multiple regression analysis showed that the top management commitment, customer focus and continuous improvement had significant positive impact on organization performance. The employee empowerment had insignificant negative impact on organization performance and the process approach had insignificant positive impact on organization performance. Finally, on the basis of the research findings, suitable recommendations along with inferences for further studies have been forwarded. The recommendations take assessment of employee training need and opportunity for improvement of to deliver quality service and increase organization performance
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    Impact of Inventory Management on Operational Performance of Ethiopian Pharmacuticals Manufacturing Companys on Case of Cadila Pharmaceuticals (Ethiopia) P.L.C
    (A.A.U, 2024-06-24) Samuel Daniel; Sewale Abate (PhD)
    This study investigates the impact of inventory management practices on operational performance at Cadila Pharmaceuticals (Ethiopia) P.L.C. (CPEL), emphasizing their crucial role in organizational improvement and achieving high levels of customer satisfaction. Primary data was gathered through questionnaires and interviews, complemented by secondary data from document evaluation. Adopting an Explanatory research design facilitating both qualitative and quantitative data analysis, the study distributed 56 questionnaires and employed descriptive statistics to analyze results. Correlational analysis and regression were conducted to explore relationships between independent variables (e.g., Material Requirement Planning [MRP], Distribution Resource Planning [DRP], Vendor Managed Inventory [VMI], Just in Time [JIT] System) and the dependent variable (operational performance), revealing statistically significant findings. The research highlights that CPEL has not fully implemented inventory management systems and recommends further investigation into factors influencing their adoption to enhance manufacturing companies' performance in Ethiopia.
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    The Effect of Digitalization on Bank Profitability: The Case of Selected Private Banks in Ethiopia
    (A.A.U, 2024-06-05) Nitsuh Asheber Enyew; Laxmikantham Padakanti (PhD)
    This study was conducted to investigate the impact of digitalization on the profitability of selected private banks in Ethiopia. The study employed a quantitative research approach, which relies on numeric data to test hypotheses and draw conclusions. An explanatory research design was adopted variables. To select the sample, a purposive sampling technique was utilized. In this case, banks were chosen from a list according to specific characteristics relevant to the research questioned, employing descriptive statistics, ordinal regression, and Spearman rank correlation to assess the relationship between these variables and bank profitability. The primary method of data collection was made using 5 points Likert scale questionnaire. Importantly, ATMs, point of sale terminals, mobile banking, and mobile wallets exhibited a highly significant impact on profitability, with p-values of 0.000. This study suggests that these channels play a crucial role in driving financial success for Ethiopian private banks. However, internet banking, despite showing a positive correlation, did not demonstrate a statistically significant impact on profitability. The result of this study shows the need for banks to re-evaluate their Internet banking strategies, potentially focusing on optimizing existing functionalities and ensuring seamless integration with other digital channels. By addressing these areas, banks can unlock the full potential of Internet banking and maximize its contribution to overall profitability. Banks should prioritize investment in ATMs, POS terminals, mobile banking, and mobile wallets due to their highly significant impact on profitability. This includes expanding the infrastructure, enhancing security, and providing user-friendly interfaces to facilitate wider adoption and usage.